It was done that way because @blocktrades wanted the HBD to be received right away, as you say to sell into pumps. I would have been perfectly happy to have it work the same as the other conversions. Yes it would be less effective short term on pumps but I think it would have been sufficiently effective over time and simpler. In reality, we have no way to know if this is correct.
Anyway, the way it works is the HIVE you "convert" is actually posted as collateral for a loan of HBD. The amount of the loan is determined using the MINIMUM feed price with a 2:1 collateral ratio (i.e. you get half as much HBD). Then after 3.5 days the conversion actually happens at the MEDIAN feed price, converting whatever portion of the HIVE collateral is needed to repay the loan, and you get a refund for the rest. With 5% fee deducted of course.
The 5% fee seems to be applied to the whole 2x collateral, meaning its a 10% fee.
I'll look at the code but I don't think so. It may be applied to the collateral when calculating the amount of the loan, but ultimately it is the conversion and return of extra collateral at the end that matters.
Hi @smooth, is anything going on with @hbdstabilizer? The last 4-5 hours it seems to be just letting Hive collect in the account.
There is some glitch in the code where it freezes up very occasionally like once every few months or so. I have looked for the bug but never found it. Anyway, all gets corrected once it is restarted. Maybe I'll script something to autorestart it.
Ok I wonder sometimes if I am interpreting it right, but it seems a lot like a 10% fee at the end to me. I will do a post in 2 days when the dust from yesterday settles.
Thanks for answering.
I looked at the code. It applies the fee to the
converted_amountwhich is the amount of HBD received at the beginning of the request. This is then subtracted from the total collateral to determine the collateral to return. This appears correct to me (5%).Thank you for looking! This seems exactly right.
I think there should be a way to scale the demand of HBD on time.
5% for the current system (3,5 days) and if someone wants to create more over a longer time period the fee becomes reduced.
like 30 days = 1% and 90 days = 0,1%.
Why? because it would increase supply and would work like an DCA out of Hive.
But it is overall way too confusing. Like alchemy.
Thanks for the comment.
I still don't understand it.
Mostly just the median price thing.
Median of what dataset?
A snapshot every hour?
It's the same median that's used for the other conversion. One snapshot every hour for 3.5 days.