I'm a little late today so I'm playing catch up!
Yesterday there was a discussion about creating a stable coin to LeoFinance. What are the benefits of that? I still don grasp the whole concept of a stable coin.
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The idea of a stable coin linked to the US dollar such as HBD is this. If I think the price of HIVE will drop, I can change it to USD and buy back in at a later time. If HIVE goes up, I can do the opposite.
It's the same way with the crypto markets and the stock markets where you park your cash because your haven't made a decision yet. Which means HBD should be pegged to $1 but it hasn't been able to reach $1 lately at all and it has huge swings
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Interesting point raised here. I think that is why we need a governance token for LEOFinance and it would be fair to let the governance token play the stable coin role.
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A stable coin is needed for commerce.
If you have a website selling something, do you want it to fluctuate every time the price of Hive (or something else) goes up or down.
Plus, if you get paid in a currency, and it crashed overnight, all your sales the day before are now at a loss.
While it is true if the price moons, you just made more money, retailers and business people dont want that for transactions.
Hence something tied to a dollar means they can put up the price, 5 HBD in theory, and it be worth $5. That is why HBD is not a good stablecoin since it is not pegged and actually floats.
That is why they are working on trying to get it to peg.
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Ahh ok so HBD is supposed to be a stable coin...
I asked about HBD the other day... I actually asked the same thing twice then, without knowing hehehe
It's much clearer now, thanks
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But HBD isn't fulfilling it's purpose . It has been there since forever and I don't think it was at 1$ for more than 2 days lol . People sometimes feel happy if HBD reaches 1.5$ or more but they don't know it's bad for the whole concept of stable coin.
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Yea and HBD has been at $1.5 for over a day already. It might be of been fine around $1.10-$1.20 but its like nothing can push it back down.
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Yeah, it's at $1.44 right now. When it started pumping, I recall thinking back on the old blockchain site: "Isn't this supposed to be around a buck?" I thought it was.
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Lol I wasn't on the old block chain but I honestly don't mind a pump now and then as long as prices correct in a timely manner. But HBD hasn't been anywhere near $1 lately so I feel like its doing the job of a stablecoin. As much as I don't mind a huge pump in HBD to exchange out for some cheap HIVE, it's kind of ridiculous if prices are unable to correct properly.
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Well SBD is insane when compared to HBD , we can see it often go upto 5-6$ and some steemit people lose their mind and praise it like it is BTC but they don't actually know what SBD is and what is its purpose .
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Lol yes . Only those who don't understand the concept of HBD will be happy to see it at that price .
I wish we can somehow fix it so that it remains around 1$ itself , it will help Hive indirectly because people like to deal with Stable coins .
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Yup seems like people are interested in HBD more than hive . I don't know why HBD price pumps , it should be lesser than 1$ ideally unless people love the 3% interest it provides.
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Yea the original HBD stabilization fund set it to drop the price of HBD until it was $1 or less. If HBD is less than $1 then you are getting it for a bargain. However if its above, then the peg isn't doing its job because there are less things to help HBD when its overpriced. I though adding interest would help stabilize HBD but it didn't.
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As content creators, I think we want to see it do better to maybe $4 or $5.
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Well yeah content creators will be happy but it is not good for Hive since HBD is supposed to be at 1$ .
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No it hasnt fulfilled its promise.
We are seeing some selling to help affect the price downward and also changes in the tokenomics at the chain levels are being discussed.
Blocktrades put out a post about it.
If you didn't see it, here it is:
https://peakd.com/hive-102930/@blocktrades/proposed-hardfork-change-to-stabilize-hive-dollar-s-tracking-of-usd-value
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Yeah I checked it out , I don't think it is the ideal way because as Hive price increases they will need more and more payouts from the post I guess to buy Hive and sell HBD to bring it down to a dollar.
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Is a stable HBD a necessity for liquidity pools if Hive ever decides to go that route?
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I don't think it is. We see it fluctuating on recent times. Look at SBD doing a ride to $7 and more. We may likely see HBD hit $4 soon.
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I think it was there or almost there for a few hours a month or two ago. I don't mind if it gets up there as I will be exchanging all my HBD into HIVE.
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The key word is suppose to be. It has failed.
That is why there are now efforts underway to get that operating as intended. We will see the effect they have.
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Hopefully they help to actually make it stable
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Are we anticipating the #LeoShop revive any sooner? That was the first tribe sponsored eCommerce on Hive from LeoFinance (then SteemLeo) community.
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Was it talked before ? Have I missed it or is it something you are suggesting ?
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I think that is well on the back burner at this point. There are so many other things being worked upon that I am not sure it is even on the radar at this time.
I would be there is no development taking place, just a guess though.
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Interesting discourse. i need to get the foundations of the discussion before I share my thoughts.
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