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RE: How to PRINT MONEY with HIVE and HBD

in LeoFinance2 months ago

This is NICE!

At least by now. I'm just aware there are no free lunches...

Where is the limit? Will conversion be still possible after $HBD reaching 10% value of $HIVE?

Who will pay for this is the long term? What drives people buying $HBD for more than $1.05?

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Everytime I ask the question 'who?', the only answer I ever get is 'the koreans'. I really don't know, but everyone is benefitting except whoever would buy and a dollar for 1.20 😅

There is no limit, except the limit of the markets insistence on breaking our peg, so we could print a lot more, as long as someone is paying 'too much' for them.

I'm almost certain that the 10% haircut rule applies.

Where can I read more about this? It sounds very familiar....

I'll dig around. I was thinking Blocktrades wrote about it somewhere.

10% of Hive marketcap can be printed in HBD with the ratio of 1$.

If there more HBD it isn't backed anymore 1 to 1.

But that scenario never happens in the past :D

maybe if hive hits 10$ and falls back to 1$ or something like that. Then we can buy HBD maybe for 0,20$ :)

It is an Arbitration opportunity

If you do the operation yourself, you are selling your HIVE to buy HBD.

That is, you are receiving your HBD at 1.05 dollars

To then sell it and get HIVE again.

You make a profit as long as the price of HBD (*) does not rise, and its value remains high, while you convert.

But still the accounts do not close me, take a look at my other comment


Note
(*) Where it says HBD I meant HIVE

Posted Using LeoFinance Beta

If you do the operation yourself, you are selling your HIVE to buy HBD.

You use the collateralized_convert contract to convert, not sell, Hive into HBD.

You make a profit as long as the price of HBD does not rise, and its value remains high, while you convert.

What happens to the price of HBD after you first sell it does not affect your profit - only the price of HBD at the start, the Hive price at the end after you receive collateral and the feed price (ie. the median price reported by witnesses over 3.5 days) which determines how much collateral you actually get back affect how much profit you actually make.

that's how it is

Posted Using LeoFinance Beta