Three Years Without HBD Loosing Its Peg on the Downside!
Ever since the creation of the Hive fork back in March 2020, HBD never lost its peg on the downside. It has lost its peg on the upside so to speak, trading at more than one dollar, but nobody is complaining about that.
The on chain price (strong white on the chart) has been steady at one dollar, while the market price (the grey on the chart) has at times been trading around 0.95-0,97, but this is mostly because of the low liquidity on HBD, and the 3.5 days conversion time that can cause a lag.
If we zoom back from 2016 we have this:
Here we can notice the deppeging of HBD, formerly HBD back in 2019, when it dropped to 60 cents.
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I lost faith in stablecoins after the UST stablecoin crash, but HBD brought it back
@tipu curate
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this is indeed great!
By the way, I noticed something today. Wouldn't it make sense (for a whale) to buy/pump Hive then convert Hive to HBD. Doing this would not affect the price since one does not actually sell it. The HBD could then be sold on mainly Upbit without affecting Hive through the HBD/BTC pair there (caveat is that it's only available to S. Korea). I don't think this is possible with any other coin.
Not sure do I fully understand your point, bit have in mind that hive to hbd conversions are at the feed price that is 3.5 days average. A short term pump, wont give you expensive hive for conversions. Plus while hive is still small, its not quite a micro cap... you need a significant funds to move it... more risk etc
I'll explain it in a post more in detail; what do you think started on August 2021 here? In a matter of weeks 16M HBD was transferred to Upbit
It was the first major pump for hbd after the hive to hbd conversions were introduced in hf in july 2021. Speculators pumped hbd, users converted hive to hbd and arbitradge it
What happened in 2019 again?
At the time, sbd lost its peg, becouse the steem price was around 12 cents and there was more than 20M SBD in circulation :)
Looks like HBD is resistant to some market turmoils that were some time ago. I think HBD could be a bigger part of stables portfolio. Great post, dalz!
I've seen it loose it's peg a lot, only buy 1-10 cents, but that's still a lot.
If we talk about the external markets, yes I have seen it going as low as 92 - 93 cents, back in November 2022, when FTX happened.
This is mostly becouse of the 3.5 days conversions and the market risk that the hive price has in the period.
I'm thinking we should maybe implement the same mechanics as the conversions on the upside that were implemented later, and provide 50% instant liquidity. Those seems more efficient.