The dip in HBD is caused by a lack of liquidity on the internal orderbook.
Flash crashes on Hive result in slight temporary depegs like this.
It takes a few days to stabilize because the conversions take 3.5 days.
It's actually good for HBD health because not doing it this way is exactly why UST crashed to zero.
I've always been a proponent of a deep liquidity AMM HIVE/HBD pair.
This would prevent depegs such as these.
But no one on Hive seems to want this.
The only way it gets a ton of adoption is if we allocate yield to it.
Be it trading fees or raw inflation.
There's also no intrinsic financial incentive for anyone to make it either.
And VSC contracts are... quite new.
I bet many of the small users would do it to help the hive, no profits needed.
Crowd sourcing this seems a more sustainable way for the hive, anyways.
No vc's needed.
What baffles me is why somebody hasn't offered a dswap type bot service to trade the internal market.
Buy at .97 and sell at 1.0.
Seems like that thing would print money.
I know my dswap bot paid for itself several times over.
Okay, but "buying at 97 cents" means selling Hive after it just crashed 20%.
That isn't buying low; it's selling high.
So the bot needs access to another stable-coin like USDT that has a better peg.
So the bot needs to be able to:
see the opportunity
sell USDT reserves into Hive
transfer the Hive on-chain
sell the Hive into HBD
be able to do the opposite when the peg is higher than $1
or at least trade back into USDT when the $1 peg is returned
This is a lot of steps and requires API access to the exchange holding the USDT.
Many things can go wrong.
no
The dip in HBD is caused by a lack of liquidity on the internal orderbook.
Flash crashes on Hive result in slight temporary depegs like this.
It takes a few days to stabilize because the conversions take 3.5 days.
okay, got it, but isn't it bad for hbd health?
It's actually good for HBD health because not doing it this way is exactly why UST crashed to zero.
I've always been a proponent of a deep liquidity AMM HIVE/HBD pair.
This would prevent depegs such as these.
But no one on Hive seems to want this.
So, write the vsc smart contract?
Or, sponsor the writing of it?
I've been asking folks why we can't have one of those, too.
The only way it gets a ton of adoption is if we allocate yield to it.
Be it trading fees or raw inflation.
There's also no intrinsic financial incentive for anyone to make it either.
And VSC contracts are... quite new.
I bet many of the small users would do it to help the hive, no profits needed.
Crowd sourcing this seems a more sustainable way for the hive, anyways.
No vc's needed.
What baffles me is why somebody hasn't offered a dswap type bot service to trade the internal market.
Buy at .97 and sell at 1.0.
Seems like that thing would print money.
I know my dswap bot paid for itself several times over.
Okay, but "buying at 97 cents" means selling Hive after it just crashed 20%.
That isn't buying low; it's selling high.
So the bot needs access to another stable-coin like USDT that has a better peg.
So the bot needs to be able to:
This is a lot of steps and requires API access to the exchange holding the USDT.
Many things can go wrong.
oh, carelessness can cause damage.