RE: Current Events May 2025
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It's no secret that algo stable coins like HBD make Hive more volatile.
The stability of HBD is outsourced into increased volatility for Hive.
What we require is a volatility derivative that stabilizes the main token.
Basically if the price of the main token gets too high (above targeted projections) then you print the main token out of thin air and use it to buy up the volatility token. And if the price of the main token gets too low you print the volatility token out of thin air to pump the main token. The only question becomes how to exactly manage the targets and the incentives to provide liquidity.
This is the main solution I've been able to think of to provide elasticity to the market.
The underlying system would always have to keep expanding and generating more revenue.
Unfortunately that's not realistic and exactly why the legacy economy is doomed to fail.
These assets need to be able to find stability and allow the system to get smaller while still operating as intended. Otherwise it's just an ever-expanding cancerous ponzi doomed to collapse.
It's tough to solve for sure because it takes so much energy to produce any value for anything really.
lot's of time, energy, and also a lot of risk
the thing you build could end up being completely worthless
not cool!