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RE: HBD Interest Payouts For July 2022

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demotruk
@demotruk
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Some people even criticized HBD as being not actually being a stable coin because of this sudden price movement. But they ignore the fact how fast the price went back down to the peg. This movement should actually prove that HBD is a great stable coin.

This means the peg mechanisms work, it does NOT mean it's stable. Sudden spikes are the very opposite of stability.

HBD differs from what most people call stablecoins in that breaking the peg is normal for HBD. It always returns to $1 eventually. Most stablecoins are defined by never (or very rarely) breaking the peg in the first place.

In truth it is market maker liquidity that determines if something is truly stable. The peg mechanisms themselves can only encourage, never ensure stability. This is true for the centralized/custodial stablecoins like USDT as well.

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