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RE: What Is The Inflation From HBD Interest? How High Can It Go And Is It Sustainable?

in LeoFinance • 3 years ago

Debt/credit, used in a proper way is great! This is true in traditional economy as well. Just look the ultra rich no.1 scheme ... buy-borrow-die ....

The trick is to use it in a good way, mange it well and dont overdone it.

3 years ago in LeoFinance by
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     3 years ago  

    I thought we were getting away from traditional finance lol. Where is this debt even being used? Who is borrowing, who is lending?

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       3 years ago (edited) 

      The Hive debt in the case above reffers to the debt of the chain as a whole. All HBD is a debt on top of the HIVE marketcap.

      Its not a traditional borrow/lend.
      Basicly the chain allows for conversions HIVE<->HBD, expandind the supply. Its very similar to what LUNA-UST is doing, just differnt words. And they dont have a haircut rule (debt limit) that is quite dangerous.

      P.S. I cover the haircut rule and the debt here
      https://peakd.com/hive-167922/@dalz/the-haircut-rule-the-biggest-risk-for-the-hbd-price-or-historical-data-on-hive-debt-and-hbd-price