I try to pitch the idea already under posts in the comment section of HBD stabilizer and Blocktrades posts. It also become some attention, but I think sooner is better than later, and I know converting hive into HBD is a thing that could come with the next HF for everyone.
But the impact could be bigger as we think today ( in a good way).
So what is the idea?
you know, if you hold liquid hive as an investor, the network doesn't benefit directly from it, because you cant use it to influence something as a holder. you cant pay transaction or something else. That's a problem IMO. We need a way to offer a return and demand for the liquid hive that also benefits the network.
If you don't already know how the HBD stabilizer work, here some short Information.
Hive gets converted into HBD and buys back more hive on the internal market if hive is over 1$. This brings a nice return for the DAO fund and indirectly every token holder benefits from it.
IMO a better solution would be a Community-driven pool with the same mechanic.
An Investor can deposit liquid hive to the pool. The Hive gets converted into HBD. If the price of HBD is over 1$, the pool buys in masses Hive.
The return can compound or payout as a return on investment to investors that pool.
Why is this better than what HBD stabilizer is doing?
Simple.
HBD stabilizer is limited in resources, the network with all investors isn't.
We can generate HBD on demand. We have no daily cap to it as the proposals have. An investor can on-demand deposit Hive in the pool.
The price should become super stable.
So we would become a REAL and useful stablecoin. Without fixing anything else.
Besides this ( what already awesome is), it offers a use case for the liquid hive that benefits the Hive network.
It would be the ultimate possible impact DEFI farm in crypto. Sure if the price becomes stable, the returns become fewer, but there will be always returns in hive.
And this is not all.
If we can generate HBD on demand, it could work as a real currency, like it was planed.
A transaction cost-free stable coin, that could be used for DEFI or as backed/ wrapped version on DEFI farms all over the crypto space ( better as TETHER? because it is decentralized?).
What about the returns on it?
Returns should be not bad. If HBD is above 1$, conventions get started and buy it back. Currently, the Conversions for DAO FUND have an APY from around 20000%. Crazy, it beats every DEFI farm.
If it is stable long-term, and demand increase for HBD, it should be always bringing returns and price should be stable +- 0.01$. And this is already a big deal for returns.
How should the pool work?
easy, feeless and trustless. Like the DAO fund.
Converting should work instant with an average price of a longer timeframe.
It could also work overtime, but it would limit things too much. Like it needs 3 days or 24 parts in 24 hours.
Again IMO fast and easy.
About conversions for everyone, we should think about it. People that generate bots would be the only one that benefits. It should be open for everyone. A real Hive DEFI that makes HBD great.
Besides this, why I think it is important because of steem.
We all know, investors are greedy. Special in crypto. Offer them a way to earn on Liquid Hive would change everything would move funds from exchanges to Hive.
For an average retard Investor a 10$ SDB looks better than a 2$ HBD.
Because both unstable, one is less worth.
But if our Token becomes stable by a community with returns, it would be super innovative compare to other projects. Because this has a real use case behind it.
And with Smart contracts, it can be our stable coin for trading on our Tokens + DEFI tools. Completely independent.
Awesome right?
And one more thing. Investors that like the idea of hive, but hate the power downtime and curation become the ability to be part of the community in a really useful way.
And most really rich investors are more "take my money and do something useful with it". A billionaire will never play the curation game.
Any questions Feel free to ask. I would love to see a longer discussion on it. About the haircut rule and so on.