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RE: 4 Reasons for Lowering the HBD Savings Interest Rate

in LeoFinance11 months ago

I particularly not in favor of using a reward for just holding a stablecoin for 3 days in staking, as it does not create any value for Hive. It should better be used as a bond and money used for development for Hive or generating more fund.

It only create more Hive and more HBD through stabilizer and it has to balance $1 of HBD to Hive tokens all the time which is quite a complex mechanism but generates more and more tokens that goes into market to become liquid.

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HBD Stabilizer cannot issue new Hive or HBD. It can convert them (I don't know if it actually does or not, I thought it only trades there and back), but that's something anybody can do.