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RE: What is SBD: Looking for an official definition

in #sbd6 years ago (edited)

Good summary. The latest details should be in the HF20 hardfork documentation where they messed up the way SBD works. For some additional information and a deeper analysis of what went wrong, what can be done and how to benefit from the chaos please have a look at my pre HF20 prediction link
(that became true all too soon) and my two recent posts on the current situation here and here.

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Yea it looks like this was just a bad mistake. Instead of allowing people to print SBD at will they increased the print rate and made it so that a haircut is virtually guaranteed. This unfortuanetly decreases the use of it quite a lot.

Yes,
but allowing people to print it is also dangerous. There should be an 'inverse' haircut to make printing unprofitable at larger debt ratios.

I think we just need a more complex solution that allows for private collaterals for SBD. We can still allow the chain to issue SBD using a decentralised collateral. But that would be some work to implement and not be as easy as changing some numbers.

I actually made another analysis (a little more complex this time) where I show that the peg is already broken already at 9% debt ratio where we are already printing sbd at full rate. This is a disaster!

Also buying right now and doing conversions will result in losses.

R