You are viewing a single comment's thread:
RE: SEED Holdings report #19 - Extended review of all assets
I remember also times SBD was traded for 0,6$. That was the other extreme.
That is no longer an issue with the stabilizer in place. Also, if we remove the 3.5 day conversion mechanism, it will allow for more arbitrage opportunities which is needed to hold a peg. Those looking to scalp a couple percent will not risk it for 3.5 day wait.
I also would expect, our builder would ALL leave the chain if we have 200%+ inflation. This is what heavy market swings can do.
How would we have a 200% inflation? I am not following how that is even possible.
Posted Using LeoFinance Beta
0.02140948 BEE
I discuss with smooth about this. Its not anymore save against abuse if we remove it. I had the same idea to remove it to make it on demand.
1B MC Hive around 2,5$ hive / 300M HBD MAX by 30%.
In price falls massive and also the converting runs in steps, we can print a massive amount of hive.
Think about this like stairs. And people are forced to convert if they don't want to get under the haircut hammer.
it's an exponential curve, the more heavy the swing the more we print. And every step it becomes bigger.
Because 30% will be the max in the hold ( in game theory you want to protect your holdings).
I make a nonaccurate example, because accuracy would involve way more effort :)
For this example, we say we always stay 10% under Haircut ( because panic is impossible to calculate in)
1B MC = around 2,5$ Hive = 270M HBD / Price falls 10%, we also expect around 10% converting.
900M MC 2,25$ hive = 270M HBD - 27M HBD ( 10%) converting = 11,7M hive extra.
Hive falls again 10% ( maybe because of the 11,7 extra sell pressure?)
810M MC 2,025 = 243M HBD -24,3M ( 10% converting) = 12M extra hive.
I don't want to go the steps down. But every 10%, the generated hive also increases exponentially.
so 200% would be possible. in theory even more, because the more steps we go, the more hive we can print in theory.
So the last steps will damage the most.
Btw, if this way should start, I see no way demand hive increases to stop it.
Because why buy if print that massive? I wait for more = cheaper price? Why not convert also?
Should i write about that topic a post with way more details or is the concept clear behind it?
also made a post:
https://peakd.com/leofinance/@urun/hbd-converting-and-exponential-curve-behind