The Fallout Over UST And What They System Really Is

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▶️ Watch on 3Speak

To create an alternate system, we have to truly understand how the existing one works. Unfortunately, few really do which is why we see issues in trying to replace it.

In this video I discuss UST and how that is an indication of where we misdiagnose things. For HBD (and Hive), we need to take a different approach.

▶️ 3Speak

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Bang, I did it again... I just rehived your post!
Week 105 of my contest just started...you can now check the winners of the previous week!
!BEER
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Thanks for the update on these issues, they will come for it sooner, rather than later. {Money} We just have to hide it where they cant get it!

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Twitter: STABLECOINS ARE CRASHING
Me: looks at HBD meh
goes to see what Task is saying LOL

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LOL not sure that is the best idea but I guess it is as valid as following twitter advice.

Both of us are probably off the deep end.

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😂 Well I figure somewhere between Twitter panic and your general chill attitude, is the middle ground. LOL

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I actually wanted to invest in UST. But I couldn't buy any from the exchange. I'm not entirely sure what happened. But I couldn't install terra on my metamask. This was a while ago, I was curious more than anything. And defi kingdoms I couldn't buy that Jewels. So now I just concentrate on Polycub, Leo, Hive, Cub and Hbd. In a way I'm kind of glad I couldn't but those crypto !

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Yes although we have to make sure that we stay vigilant in building the use cases for HBD and enhance the resiliency.

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As an algorithmic stablecoin, I definitely see the need to analyze what went wrong with Terra. In that case, we can see what happens if a bunch of HBD was converted into Hive. Rather than instantaneously, it's a 3.5-day process so it gives us some time to react. However, the inflation of Hive could be quite crazy and I do think Hive's price would drop a lot if the person selling the Hive. So I think your suggestion of having a 5% fee would be a good solution to reduce that supply being left on the market.

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The inflation is mitigated by the haircut also.

So we have a few measures in place. I think a 5% conversion fee going from HBD to HIVE could also help to keep the balance between HBD and HIVE.

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(Edited)

Ok, after seeing what happened with UST, I'm sold on the 5% conversion fee on HBD to HIVE as well.

It is also important to think about what happens with the fees. Simply burn them? Or find them a use case that doesn't threaten the system?

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Yea and it's not like you always have to pay the 5% fee if you buy on the internal market. I believe that 5% should be burned but a portion of it could also go to the DHF if they wanted to.

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I'm still not a fan of burning tokens, especially on the 1st layer. The only good thing I see from such an action is that it's very easy to code, unlike some other alternative options.

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Another alternative is to distribute this to everyone who is holding HP. It would add to the inflation for those who are staking in the network.

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I think that's a pretty good idea. The new inflation would go to holders, based on their stake, which would improve the attractiveness of holding HIVE powered up and, being illiquid, it's not a risk of being dumped right away to accelerate a potential dump.

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I think you might have a good time reading this article/analysis on what happened with cryptocurrency markets lately: https://onchainwizard.substack.com/p/how-to-make-800m-in-crypto-soros

I think HBD could handle a situation like this better. LUNA did not have much value outside of its stablecoin ecosystem. HIVE on the other hand has many DAPPs built on top of it along with a great community. I think the situation would have worked out better for LUNA if it was acting as another EVM chain with a healthy ecosystem of DAPPs.

I am also interested in seeing some stable assets built pegged to other "real" assets like precious metals. BitShares already had thse. Unfortunately they didn't take off well.
!PIZZA

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We also need use cases for HBD. You are right about the DApps which LUNA doesnt seem to have but we have to do the same thing on the HBD side.

I just wrote an article about this.

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Projects like @ragnarok.game can help with this eventually. We already have many services accepting cryptocurrency as payment. As a first step we should try to get them to accept HBD as one of the cryptocurrencies. If they can accept volatile crypto, they can certainly accept a stablecoin (unless some regulator is up their throat). HIVE Pay could be a very important player in this.
!PIZZA

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I heard that Citadel were shorting it. Could that happen with HBD?

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Don't you need to be talking way more trash about HBD if collateralizing a stable-coin is an invalid strategy?

Personally I think we need to be collateralizing HBD even more by allowing long/short collateralized debt positions.

Also by having an AMM internal market we can manipulate yields on the fly and create that desperately needed elasticity.

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Summary:
In this video, Task discusses the fallout from UST and Luna, mentioning the concerns raised by individuals like Jenny Yellen and the potential threats to the financial system. He criticizes the notion that a relatively small sum like 14 billion UST could bring down the entire financial system, comparing it to the vast size of the repo market. Task emphasizes the need for stablecoins to be more resilient and not collateralized to create a strong digital money market. He questions the understanding of money and banking systems by most people, highlighting the complexities involved. Task also delves into the importance of developing robust infrastructures for cryptocurrencies to compete with the existing financial systems, emphasizing the significance of resiliency. He talks about the potential of projects like Hive, Staplecoins, and Luna with UST to reach trillions of dollars if developed correctly.

Detailed Article:
Task's video delves into the aftermath of the UST and Luna situation, pointing out the reactions from prominent figures like Jenny Yellen and Elizabeth Warren. He dismisses the idea that 14 billion UST could pose a significant threat to the financial system, highlighting the vast scale of the repo market which operates in the trillions on a daily basis. Task questions the understanding of money and banking systems by the general population, emphasizing the need for a deeper comprehension of these complex systems, especially in the context of cryptocurrencies and stablecoins.

He stresses the importance of stablecoins being resilient and not solely collateralized to avoid creating vulnerabilities within the market. Task discusses the temporary nature of pegs and how they are designed to realign, suggesting that UST's peg may eventually normalize. He explores the need for stablecoin projects to focus on building strong infrastructures, which involves careful development and understanding of concepts like derivatives.

Task highlights the challenges faced by projects like UST, suggesting that quick expansions without a solid foundation can lead to instability. He emphasizes the slow and meticulous process required for building a strong alternative financial system, pointing out that the existing financial systems have evolved over decades with most people being unaware of their intricacies.

The video concludes with Task discussing the potential of projects like HBD and the importance of collateralization and bonding in creating value and resiliency in the cryptocurrency space. He ponders the creation of private forms of pristine collateral and their potential worth in the trillions of dollars if successfully implemented. Task emphasizes the long-term commitment needed to develop robust infrastructures that can compete with the existing financial systems.

Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.

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