RE: The Future of Stable Coins
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The 20% interest is extremely dangerous because it rewards HBD at a higher rate than HIVE.
How???
If anyone thinks it’ll serve them better to risk forgoing potential profit from hives volatility, governance, for 20% Apr? good for them, hbd is meant to be pegged and not volatile. To me it’s not smart to even think to attempt to convert all one’s hives to hbd for the sake of 20% Apr lol.
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The top HBD interest holder have very little HIVE.
Last month 12 accounts received over half of the HBD rewards. The month before that 8 accounts received half of the rewards. So, we are paying tens of thousands of dollars in interest to very small number of accounts that are not actively engaged in the HIVE forum.
But they are engaged with their money right?
Your insinuations will carry more weight when it’s backed by facts and perhaps figures other than assumptions.
Here’s what that looks like
https://leofinance.io/@dalz/what-is-the-inflation-from-the-hbd-interest-realized-and-projected-or-august-2022
You do know what a fact is ... don't you?
The statement "12 accounts received over half the HBD interest" is called a fact. A month before the number was 8.
The reason it dropped from 12 to 8 was that some of the large accounts converted huge amounts of HBD into HIVE when the price of HIVE dipped below $0.40 .
It is a demonstrable fact that the large accounts converted HBD to HIVE and sold it when the price of HIVE was weak. We can prove these things by looking at the small number of accounts that hold most of the HBD.
Claiming that the large accounts did this because they feared the haircut could be called an insinuation.
The article you referenced contains the line:
I guess I would describe that statement as a definition.
Of course, You might describe it as an insinuation as the term derivative is associated with the financial collapse of Enron, Lehman Brothers as well as the mortgage backed securities and credit default swaps that caused the Great Recession.
The observation that the same mechanism was also at the heart of other problems like the collapse of FSLIC and numerous other bankruptcies could be called an insinuation.
Of course the term "insinuation" does not mean that the claim is not true. The term "insinuation" simply means that you don't like what I said.
BTW, it is a demonstrable fact that a large number of accounts stopped transferring funds to Hive-Engine after the witnesses raised the HBD interest rate.
It is a demonstrable fact that many of the alt-coins have seen their prices collapse after the raise in the interest rate. One can prove this by looking at the honey-swap transactions ... which I did.
It is a demonstrable fact that the price of HIVE has lagged against the price of BTC since raising the interest rates. Here is a chart from CoinGecko.
The facts seem to indicate that the high HBD interest has been bad for HIVE.