I think one of the points of the interest rate increase is to attract outside money... paired with the hbd/usdc lp... it just isn't big enough yet... but if it succeeds in attracting a significant amount of outside money into the hive ecosystem, all the second layer tokens stand to benefit too, right?
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You're very correct my friend, but the reverse I think is the case, because Hivers on-chain are taking all the HBD available. The end result can still be a win win senerio.
Thanks for your amazing thought and comment. I appreciate.
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The high interest attracted a few institutional investors. Last month Eight Accounts received over 50% of the HBD interest. The top 100 accounts received over 84% of the HBD interest.
Since interest compounds, this imbalance is getting worse by the month.
There are tens of thousands of active accounts on HIVE. So this high HBD interest is hurting 99.5% of the users on HIVE so that the platform can give outsized rewards to less than half of a percent of account holders.
It is the most ridiculous thing I've seen on this platform to date.
The system guarantees HBD with HIVE. IF the crypto world has another major market dip, we will see the HBD holders converting HBD to HIVE by the millions.
Lets say HIVE fell to $0.25 and HBD holders converted 1 million. They would create and dump 4 million HIVE on a weak market.
If the price fell to $0.10 (which is near the feared hair cut), the HBD holders would dump tens of millions of HIVE on a weak market.
BTW, you can prove that HBD was behind the recent crash on HE by following the transactions of Honey-Swap account. The interest rate crashed prices on HE in the short term and threatens to crash the price of HIVE in the long term.
The move was pure stupidity.
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