P.S. Any thoughts on reducing the conversion time from 3.5 days, to 2 or maybe 1 day? This will lower the risk from the Hive price changes and create a better peg for HBD.
I don't think it is really necessary to reduce the hbd->hive conversion time to improve the peg tracking against USD.
Despite the opinions of some other observers, I personally think the peg works very well as-is, now that we have hive->hbd conversions to peg the upside. With the one potential exception of the haircut case (a risk that will be lowered with the next HF, of course), I believe HBD to be as stable against USD as fiat currencies that trade against the dollar. And in many ways, even the haircut risk can be likened to the risk of holding any fiat currency when the economy of the country backing that currency is experiencing problems.
So I believe HBD has sufficient pricing stability now to act as a currency for buying/selling goods and that's all we should want. I don't believe there is any strong benefit to a slavish tracking of USD value, just a need for reasonable price stability against real goods.
Overall I agree with the notion that HBD being as stable against USD as fiat currencies that trade against the dollar and it is sufficiently stable.
Still I cant see strong arguments against shortening the conversion time.
One I can think of would be biggest risk for price manipulation, but a day or two still guaranties price stability. On the positive side, users will be more likely to engage in conversions for a smaller differences in the price if the period is smaller.
My main concern about shortening the conversion time further isn't exactly about the risk of price manipulation. I am most concerned that it modifies normal market-based pricing mechanisms for Hive. For example, in a normal market, if you buy enough of a fixed quantity good, you can expect the price to go up.
In the case of HBD, it provides another mechanism for acquiring Hive: instead of buying Hive, you can acquire a lot of HBD, wait for a short term market drop, then convert it to Hive during the time Hive is at a low price. This doesn't apply the same amount of positive pricing pressure that acquiring Hive on the market at that price would likely apply. Instead, this mechanism dilutes the supply of Hive itself. There's nothing outright wrong about this different method of acquiring Hive or the potential inflation mechanism it creates, but it does change the pricing and supply dynamics somewhat, and I don't think we should push it too far.
Yes, the code for that has already been merged into the develop branch.
Tnx!
P.S. Any thoughts on reducing the conversion time from 3.5 days, to 2 or maybe 1 day? This will lower the risk from the Hive price changes and create a better peg for HBD.
I don't think it is really necessary to reduce the hbd->hive conversion time to improve the peg tracking against USD.
Despite the opinions of some other observers, I personally think the peg works very well as-is, now that we have hive->hbd conversions to peg the upside. With the one potential exception of the haircut case (a risk that will be lowered with the next HF, of course), I believe HBD to be as stable against USD as fiat currencies that trade against the dollar. And in many ways, even the haircut risk can be likened to the risk of holding any fiat currency when the economy of the country backing that currency is experiencing problems.
So I believe HBD has sufficient pricing stability now to act as a currency for buying/selling goods and that's all we should want. I don't believe there is any strong benefit to a slavish tracking of USD value, just a need for reasonable price stability against real goods.
Overall I agree with the notion that HBD being as stable against USD as fiat currencies that trade against the dollar and it is sufficiently stable.
Still I cant see strong arguments against shortening the conversion time.
One I can think of would be biggest risk for price manipulation, but a day or two still guaranties price stability. On the positive side, users will be more likely to engage in conversions for a smaller differences in the price if the period is smaller.
My main concern about shortening the conversion time further isn't exactly about the risk of price manipulation. I am most concerned that it modifies normal market-based pricing mechanisms for Hive. For example, in a normal market, if you buy enough of a fixed quantity good, you can expect the price to go up.
In the case of HBD, it provides another mechanism for acquiring Hive: instead of buying Hive, you can acquire a lot of HBD, wait for a short term market drop, then convert it to Hive during the time Hive is at a low price. This doesn't apply the same amount of positive pricing pressure that acquiring Hive on the market at that price would likely apply. Instead, this mechanism dilutes the supply of Hive itself. There's nothing outright wrong about this different method of acquiring Hive or the potential inflation mechanism it creates, but it does change the pricing and supply dynamics somewhat, and I don't think we should push it too far.