How Well Is HBD Performing Against Other Stable Coins
Today I thought I would go and compare how well our very own Hive Backed Dollar (HBD) is doing against it's competitors. Stability is what everyone expects as the time to look for safe havens to stash our sold portfolios in USD is not that far away if we are to believe what everyone thinks. These days there are numerous choices besides USD Tether and it is good to know how each one is performing.
Over the last few weeks the market has been fairly volatile so I thought I would go back to 90 days to try and get a clearer understanding of this. HBD has a small advantage knowing what we do being able to earn 12% APR which is something the others don't offer. If you are looking at storing your hard earned earnings for a few months or longer then this would still be a great choice even if it misses the peg slightly. Pity HBD is not available on the exchanges as that would make things far simpler moving it between Hive and the exchange and vice versa.
Our own HBD and clearly some work to be done to try and make things far more stable. Maybe a thought if we aren't capable of doing it is to pay the likes of Terra for the use of their algorithm. I know COTI have teamed up with them for their stable coins. Possibly it is not that easy and would the cost be worth the stability?
USD Tether has not had things that easy either and the odd spike which should not be happening. A swing of 94c - $1.02 is a big gap.
BUSD (Binance) hasn't performed that badly and is similar to Tether with the spikes giving it a fluctuation between 96c and $1.03.
The one I have high hopes for is the Terra based Stable being UST, but as you can see it hasn't performed like it should with the technical algorithmic function. One would have thought if this is such high tech then surely they could hold the peg and is maybe not that easy after all and the algorithmic equation being used needs more work.
Maybe a stable coin losing or gaining 3% or less during times of high volatility is actually stable. If HBD can improve slightly then HBD isn't performing that badly if we are comparing. the days of 85c or less hopefully will be a distant memory. I am wondering if volumes have anything to do with this as well so the more that is staked in HBD would that make a difference?
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Personally when HBD dips too far below $1 I add a little to the savings account. When HBD is above $1 I buy a little HIVE. Nice to play in an arena that has set parameters.
Yes need to start paying attention below or above. Just been adding bits slowly and was hoping for a $4 or $5 Hive before really going in big on HBD.
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Don't get me wrong. I like a pegged token.
But the problem with pegs is they are not natural. IMO pegs will always (eventually) be broken. It may take a long time, but eventually they will. That is because humans construct value on the fly. Even the most stable pegs will fail whenever one side begins to be valued less (or more). No algorithm can match the fickle human psyche forever :-)
That being said, they do have there place and the attempt to provide pegs is a stabilizing and noble endeavor. Hive should definitely make a valiant attempt. Who knows, we might be a winner :-) Don't know if we don't try. We should try better than we have been though ;-(
Did you see this proposal? https://peakd.com/proposals/206
History over the long term is rife with broken pegs.
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No I will go to the proposal now. Thanks for that. I think you are right we have to at least try our best.
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Terra USD is considered to be a high tech algorithmic stabelcoin. I deposited a small amount on Achor protocol which provides good APR on UST. It seems the protocol is having few problems. Not sure what the issue is though.
Haven't heard anything as yet. I need to have a look at what APR is available as well. Thanks for that tip.
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None are pegged ideally. But you are right we are looking at some work still to do on HBD.
If fact, you could make a case we still have a long way to go.
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As long as it is something being worked on then that is great like anything else this takes time to perfect.
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Well I invest small amounts of HBD when I can, and although I don't analyze this volatility thing, I think it's pretty good to generate 12% annually.
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The potentials hbd possesses whether one likes it or not is sure second to none . 12% apr being earned is just so meritorious in all ramifications and this is just the beginning , brighter days ahead it seems.
Hbd is not from being the best stable coin, they need to work on it so as to make it a success
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