How is HBD created now? I was under the impression that it was continually created to ensure a peg with HIVE... which is why I don't really understand the need for Ragnorak to create a HBD sink... won't the system just create more and more HBD as it goes into the sink?
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HBD is created:
The peg to $1 worth of HIVE is based upon the market dynamics. Arbitrage is vital to keep it in line. HBDstabilizer is helping to tighten the range but it is not enough. We need more adjustments, in my opinion, to make arbitrage more feasible.
As for Ragnarok, if the "sink" is putting more into savings, then yes it will create more HBD. Of course, if the sink is a second layer and pays out of transaction fees, then it will be like a HBD kingdom on Cubfinance.
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Thank you TaskMaster! I didn't realise it was arbitrage that kept the HBD/HIVE peg, I thought that more was created when it was over $1 and less was created when it was under $1... but what you've laid out actually makes more sense from a programmatic point of view.
Yes and the HBD stabilizer is always at work.
So it is doing its best to keep the peg tight. To tighten it further is the goal.
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