RE: Hive Backed Dollar-to-Hive Ratio To 30%?
You are viewing a single comment's thread:
I really don't know how to assess what debt ratio would be "safe". I understand the reasoning behind increasing the debt ratio, i.e. to make it possible to have more HBD in circulation even if the price of Hive is low, and I agree with that. How much to increase it, I have no way to assess.
It would be interesting to have some community brainstorming on possible ways to maintain the HBD peg when it comes to the downward direction, i.e. not let it fall much below $1. It does seem that we have been under $1 for some time now, even though we are in a bull market, and even though Hive just had a huge pump. Keeping the peg, to my mind, would also help with the chain security since the amount of debt from the chain's point of view would be more or less the same as the amount of debt from the market's point of view, which should reduce risks.
Hard to know exactly. One thing I think is in play with the Peg is the fact there is not a lot of liquidity out there. Expanding the amount of HBD available could help to keep the range of the peg tighter.
Right now there is a lot of HBD on one exchange which gives it a lot of power to maneuver it up and down.
Posted Using LeoFinance Beta