Hi HODLers,
I just wanted to update you on my stance on Stablecoins following the LUNA/UST nightmare...
I wrote a few times my goal to have $10,000 $HBD by year end! This is still in my mind but with the current environment. I took the decision to sell those for USDC and to use them as collateral on a Lending Platform on Fantom.
It is not risky as it seems as I use the borrowed assets to farm. As long as I don't get liquidated, I am 100% fine and will generate a good yield.
I am kind of expecting other dips in the Stock/Crypto markets, therefore I might even win additional $ if the borrowed assets goes down.
I will share my farming strategy very soon!
Nevertheless, I decided to stay away from stablecoins summed up in the following tweet:
I think, whales are smelling blood and will test multiple stablecoins. HBD is too small to be a target but it could dePEG for a few days / weeks as it used to.
$DEI Stablecoin
This coin has been underpressure lately and has had a lot of trouble to defend its PEG.
Even if you did not hear of it, this is a large stablecoin. Currently $4.5bn and more than $7bn at its prime!
HBD Price Chart
HBD has been doing great and I expect it to continue to thrive! Even if the CryptoWorld does not know, we have one of the best asset to back it up $HIVE and its community!
I keep DCAing into projects I like and I will definitely move some capital back to HBD once the dust settles.
Stay safe out there,
Latest Analysis
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You can just send me your HBD, no biggy :p
Thank you for helping out 😉
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Every system has some sort of risk. It’s unavoidable.
In my opinion, it’s best to keep a diversified position in multiple stables. HBD is my biggest through pHBD and the reasoning behind that is HBD has been battle-tested. To the point of others here - it’s been battle tested but has done so outside of mainstream spotlight (unlike UST).
That being said, I believe the debt (haircut) ratio on HBD keeps us in a much safer position relative to something like LUNA/UST.
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The main thing is that witnesses should take care of this horse very carefully, change its horseshoes, clean its hooves, comb its mane, wash its hair from sweat and dust, drive it for walks, and prevent it from turning into a fat cow.
Any horse can be killed if you do not care for him with due attention).
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Good analogy! Changes should be explained and thought! I feel they have been and are doing a great job! We went slowly and smoothly from a 8% APR to a 20% with different mechanisms activated to help keep this PEG.
I like it!
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Thank you, Khal talked about horses and the association appeared by itself)
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This is why I am trusting our HBD. From what I have read, it seems we are protected, but then, I just hope we don’t get targeted.
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And there is a 3.5 day conversion period so the attacks will be paused in-between so the system can try to get itself back to the peg.
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Agreed! Hard to instant profit (in comparison to LUNA’s conversion system).
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I completely agree with this take and HBD is my favorite algorithm stablecoin along DAI.
On the more “traditional” ones, USDC is my favorite.
I will build again this HBD position, probably when dust settles (in 1-2 weeks). In the meantime I use my stablecoins as collateral for DeFi strategies.
Wen Polycub lending? 😅. This will be exciting and give another use case for pHBD in a few months if we could also use that one.
Thanks for the comment!
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To be honest, I've always looked towards Hive over HBD, I think it's more cost effective, but for the peace of mind, lol, I've started to stock up on HBD a bit.
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I can understand your concern regarding AlgoStables.
Did DEI also allow for a debt ratio of more than 100%?
I did the opposite move to yours which was I moved all my UDSC to HBD and at the moment they are in Savings but for me it's not worrying if the HBD does depeg for a few days/weeks.
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Looking at all these comments and discussing, I almost want to buy back my HBD.
Maybe some DeFi lending platforms allows 100%+ but I would not do it. I have at 60% usually to keep it safe and I like to have related assets on the borrow and lending side to lower liquidation chances.
For example I borrow SPIrIT tokens (Fantom AMM) and I lend FTM. Usually they tend to move in the same direction.
Thanks for the comment!
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Please never do that because your risk to be liquidated is too high.
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I have never heard of the DEI stablecoin and just briefly looked it up and they're advertising it as a fractional reserve stablecoin which just sounds super risky in the first place!
It is but I think other ones such as DAI or FRAX are also using this to back their stablecoin.
I am definitely not an expert so don’t take my word for it.
I am not dunking on HBD, this is my second favorite after USDC.
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Yeah I'm by no means an expert either, it's just the phrase "fractional reserve" stinks of legacy banking and I would think crypto people wouldn't even entertain that method 😅
This is a kind of time when I like that we are still under the radar, I'd rather we keep getting over looked while we put stronger defense in place, stability over hype for me is all I want for Hive ecosystem.
To the moon will come a little longer and its okay with me.
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You need an astronaut suit)
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But am not keen on heading to space, I prefer it on earth.
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Your coins won't ask you. you want it. or you don't, just, one day, they'll send you to the moon, now, go to the store for a space suit)
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You got me there lol, on my bike to get a space suit I sure need it for a trip to the moon 🚀🚀
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What was the name of the film studio in which the cyclist rode across the sky towards the moon?)
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Walt Disney?
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Indeed, it allows us to build a solid product calmly and make our community comfortable with it! I feel the difference is that HBD Peg is our goal and I mean the entire Hive community would protect it with 1$ to 1,000,000 in assets.
And that is beautiful! Fish 🐠 and whales 🐳 together strong 💪!
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I feel more secure in HBD savings than USDT that I'm holding as HBD is hard to be manipulated by some parties since they need the token to be able to play with it. The pHBD pool and internal exchanges are doing very well to keep it stable via HBD Stabilizer, as well.
I believe it is so far so good ✌🏼
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Most hivers feel more comfortable with hbd and I still believe in stablecoin too. Just I only believe in hbd and I have been keeping it just for me to seizing opportunities on hive
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That is also a good way to see it! I have not lost confidence in HBD. I just thought I would step back a little bit and I have found great opportunities in DeFi at the moment.
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🙌🏻 Agree with you, Stable Coins is not what I look for in Cypto space. Why stable? I want „to the moon“! 😉
Honestly. I expect Coins like Hive or BTC to rise tremendously within the next years and I think now is not the time to wait and park your money into stable coins. Invest and watch it grow. 📈 That’s my strategy.
This is completely normal, it’s looking like a war on all algorithmically backed StableCoins. Save your asset the best way you can.
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Thanks 🙏 mate, planning to build back this position a bit later this month.
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It’s a phase, we are going to get through it.
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I’m holding!
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This is probably smart!
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I don't blame you because of how the markets are acting. None of the stable coins feel safe and even USDT was knocked off its peg for a while.
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The BIG difference between HBD and other algo stablecoins is that HIVE has value from many sources that are unrelated to HDB or even crypto more generally.
These include gaming (Splinterlands and many others), blogging and community, decentralised notifications (podping, live notifications) and many more.
Also the HIVE community is decentralised and has been tested in fire. Justin Sun lost a lot of money attacking Hive and others will be wary.
LUNA was a completely speculative coin that had no value proposition other than supporting UST. It also had a centralised foundation with lots of BTC. It was inherently vulnerable.
HBD is ot really pegged and it's nothing spectacular for us to see it ss such. This situation with stables might push some funds into the volatile ones.
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You reaction is natural. Thats why we avoid lions in the wild, we nkow what they can do to humans or other similar defenseless animals.
Please explain how the value of the assets you are borrowing against helps you.
Thank you
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not everyone avoids lions in the wild, sometimes quite the opposite. they are looking for lions to show them their place. as a rug)
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