Hive Backed Dollar.
HBD is a native stablecoin on the Hive blockchain. HBD is built to hold $1USD value in the most decentralized ways. It benefits from the fee-less and fast transactions of the Hive blockchain.
How does it maintain the $1USD peg?.
There are two decentralized conversion operations designed to achieve this goal. HIVE to HBD conversion and HBD to HIVE conversion. These two operations keep the price at $1USD with a tight margin.
HBD to HIVE conversion.
This operation converts set amounts of HBD to $1USD worth of HIVE with no extra fees. It takes 3.5 days for the conversion to finalize. The price in this conversion is the median price of the coming 3.5 days to prevent market manipulations.
HIVE to HBD conversion.
This operation is a collateral-based conversion. After initializing the conversion of the X amount of HIVE to HBD, the user gets Y amount of HBD immediately. The Y is equivalent of the value of X/2 of the HIVE. The cost for Y amount of HBD is calculated after 3.5 days and the remaining HIVE is returned to the user. The price is the median price of the 3.5 days. This conversion has a 5% fee which is burned in the process.
Supported wallets: Peakd, Hive Keychain
Savings account APR.
HBD you move into savings stays in your own Hive account, with no custodian, and earns interest. Withdrawals take 3 days. The rate is variable and set by witnesses.
Risks.
HBD has two safety limits based on how much currently exists compared with the total combined value of HIVE and HBD. When existing HBD reaches 20% of that value, new HBD stops being created for rewards and conversions. At a 30% debt ratio, the haircut rule activates automatically and HBD converts to less than $1 of HIVE, which caps the debt.
Statistics, market cap, and more.
You can grab the latest figures at HBD Stats, Block Explorer