I try to pitch the idea already under posts in the comment section of HBD stabilizer and Blocktrades posts. It also become some attention, but I think sooner is better than later, and I know converting hive into HBD is a thing that could come with the next HF for everyone.
But the impact could be bigger as we think today ( in a good way).
So what is the idea?
you know, if you hold liquid hive as an investor, the network doesn't benefit directly from it, because you cant use it to influence something as a holder. you cant pay transaction or something else. That's a problem IMO. We need a way to offer a return and demand for the liquid hive that also benefits the network.
If you don't already know how the HBD stabilizer work, here some short Information.
Hive gets converted into HBD and buys back more hive on the internal market if hive is over 1$. This brings a nice return for the DAO fund and indirectly every token holder benefits from it.
IMO a better solution would be a Community-driven pool with the same mechanic.
An Investor can deposit liquid hive to the pool. The Hive gets converted into HBD. If the price of HBD is over 1$, the pool buys in masses Hive.
The return can compound or payout as a return on investment to investors that pool.
Why is this better than what HBD stabilizer is doing?
Simple.
HBD stabilizer is limited in resources, the network with all investors isn't.
We can generate HBD on demand. We have no daily cap to it as the proposals have. An investor can on-demand deposit Hive in the pool.
The price should become super stable.
So we would become a REAL and useful stablecoin. Without fixing anything else.
Besides this ( what already awesome is), it offers a use case for the liquid hive that benefits the Hive network.
It would be the ultimate possible impact DEFI farm in crypto. Sure if the price becomes stable, the returns become fewer, but there will be always returns in hive.
And this is not all.
If we can generate HBD on demand, it could work as a real currency, like it was planed.
A transaction cost-free stable coin, that could be used for DEFI or as backed/ wrapped version on DEFI farms all over the crypto space ( better as TETHER? because it is decentralized?).
What about the returns on it?
Returns should be not bad. If HBD is above 1$, conventions get started and buy it back. Currently, the Conversions for DAO FUND have an APY from around 20000%. Crazy, it beats every DEFI farm.
If it is stable long-term, and demand increase for HBD, it should be always bringing returns and price should be stable +- 0.01$. And this is already a big deal for returns.
How should the pool work?
easy, feeless and trustless. Like the DAO fund.
Converting should work instant with an average price of a longer timeframe.
It could also work overtime, but it would limit things too much. Like it needs 3 days or 24 parts in 24 hours.
Again IMO fast and easy.
About conversions for everyone, we should think about it. People that generate bots would be the only one that benefits. It should be open for everyone. A real Hive DEFI that makes HBD great.
Besides this, why I think it is important because of steem.
We all know, investors are greedy. Special in crypto. Offer them a way to earn on Liquid Hive would change everything would move funds from exchanges to Hive.
For an average retard Investor a 10$ SDB looks better than a 2$ HBD.
Because both unstable, one is less worth.
But if our Token becomes stable by a community with returns, it would be super innovative compare to other projects. Because this has a real use case behind it.
And with Smart contracts, it can be our stable coin for trading on our Tokens + DEFI tools. Completely independent.
Awesome right?
And one more thing. Investors that like the idea of hive, but hate the power downtime and curation become the ability to be part of the community in a really useful way.
And most really rich investors are more "take my money and do something useful with it". A billionaire will never play the curation game.
Any questions Feel free to ask. I would love to see a longer discussion on it. About the haircut rule and so on.
Posted Using LeoFinance Beta
I like the idea of bringing DeFi to the HIVE/HBD Hodlers.
If I could make 3% on stable pegged to the dollar HBD I would be a very happy camper.
thank you.
Best thing is the network would include people that hold hive liquid. That would be a gamechanger IMO
I love the idea of Community-driven pool for HBD stabilizer
Posted Using LeoFinance Beta
thank you nathan.
I think we need passive income ways for investors that like hive, but want it more to hold like a stock.
Because old money starts look at bitcoin. Accept it because mechanic is in some way the same as on stocks.
Hive is cooler and smarter, but complex for the people that simply move money around ( they can also hold for years).
We're learning this by hard way because Steem is showing us some of the possible things can be done with HIVE.
Time to push through the changes that community at large see.
Posted Using LeoFinance Beta
Im ready.
I have asked about getting HBD wrapped onto ETH and BSC and added to curve finance that creates stable coin pools and arbs against them
But now that we have USDT on Hive Engine swapping between them would be a smart move to make arb gains
Perhaps won’t make a major difference but it every bit helps
for this we need HBD on demand. with converting we come to that point :)
Congratulations @urun! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
Your next target is to reach 700 replies.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPSupport the HiveBuzz project. Vote for our proposal!
This community and ecosystem will continue to improve as folks like you step up and share their own unique (and sometimes contrarian) views.
Imho, we should take nothing for granted and question everything. In the process, some bad ideas will come forward (and hopefully be rejected) and some good ideas will also come forward (and hopefully be implemented).
Thanks for sharing this and moving the conversation along!