RE: DAO Deposits Stable Coin to HBD Savings, using Interest to buy & burn DEC daily
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Unfortunately, I found out that they do not back bHBD with actual HBD, so you cannot convert it back to real HBD. I tried unwrapping a small amount of bHBD to HBD around a month ago and they still haven't gotten it to me and told me not to unwrap more because they don't have it. It is extremely unfortunate and I would not use this for SPS DAO funds in any way.
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That feels sketchy of the pool.
We could use the conversion mechanic built into the blockchain itself, but then if the DAO wants to exit the position in a hurry, it is a bit problematic to do this without then crashing the HIVE price.
Alternatively, if there is sufficient faith in HBD and the HIVE eco system, the DAO and its various stakeholders could see this as a pretty sweet asset. Others, who dislike stables, might see it as a liability, but my view is this is something we can do with idle funds to earn a return, and over the long term, do meaningful things to increase the DAO's financial position.
I'm sure this would be met with potential arguments of "at what cost", but I feel as though that predicting something that distant into the future is a game of folly.
Would you be willing to clarify a bit on this?
@khaleelkazi
This is a long running issue I raised too, amongst others. The actual process works fine minting and burning bHBD when there is liquidity. However the LEO finance team minted their own bHBD without a HBD deposit, the reason provided was for arbitrage opportunities, but that doesn't make sense to me, you can trace where it all went on the blockchain. Eventually it appears to makes its way to binance where you can no longer see where it went.
Its s shame we don't have a decentralised wrapped hive, and HBD. Perhaps the witnesses can crate a multisig system, so its not reliant on one key holder. Maybe once the L2 Eth chains take off after the next upgrade would be a good place to launch something like that.
Thanks for this information.
In their communication, they said every bridged coin will be backed by the native coin.
So it's not the case.
That explains why I always have the issue with Leofinance bridges recently when converting from BSC to HIVE and versa.