Back in April I pitched an idea for a CUB stable coin called SAV. I probably made some outlandish claim that CUB would go x100 if implemented correctly. That's because CUB would be forced out of the CUB/BUSD LP, then BUSD would be eliminated entirely and replaced with our own stable coin that's been overcollateralized by CUB in a totally separate farm. This farm would in turn pull $millions out of both the LPs and the den/Kingdom.
For example, there are currently 835k BUSD in the CUB/BUSD LP. If those were swapped for our own stable coin, around $3M CUB would be required to fulfil that demand alone. There also exists additional demand: like the ability for users to now lock CUB and draw SAV loans out of it. I also theorized that if the opposite was allowed (locking SAV and minting CUB), this would created a full-featured futures market that allows both longs and shorts without charging exploitative interest rates (0%).
However, what I may have failed to mention is that these developments would not only take a lot of work, but also add known and potentially unknown attack vectors to the core liquidity pools. That's because in order to peg a stable coin one must trust oracles to maintain a price feed on CUB.
The only way to peg any stable coin to USD is to have such a price feed. We have to know how much everything is worth in USD and the network can't get that information from within the system. It must come from an outside trusted source, which is inherently an centralized bottleneck.
Luckily on Hive we already have these trusted sources: the top 20 witnesses ushered in by stake-based network-wide voting. Ethereum, BSC, and other EVM networks have so such governance structure.
Seeing as CUB is built on BSC, Hive's superiority in this matter isn't very helpful unless we bridge CUB to Hive (which adds another attack vector). Therefore we'd need to get the value of USD from trustworthy source and attempt to plug any security holes at the same time.
For example, if we trusted that BUSD is an accurate representation of USD we could use that ration in the CUB/BUSD pool to determine the "exact" value of USD within the network. This value is then used when determining how much one can mint with their collateral in addition to which CPD contracts qualify as bad-debt and can be liquified. Unfortunately, trusting that BUSD is pegged to USD is the same as trusting Binance corporation. There's a lot of shaky ground round these parts.
Already we can see attack vectors popping up all over the place. If you can modify what the network thinks USD is worth, you could increase it and liquidate positions that should be impossible to liquidate by driving that value up. Pushing the value of USD down artificially would give you the ability to draw() more stable coins than you have in collateral, immediately creating bad debt and breaking the loan contracts at the core.
Conclusion
There's a lot that can go wrong when 'upgrading' new technology to have more functionality. This is why Bitcoin's niche is security and a largely unchanging codebase. It's a feature that allows the rest of the networks out there to branch out and find their own niches.
In my opinion, Hive's niche is governance and reputation. High relative throughput/scaling is a nice bonus, but the real value is in DPOS voting and real-name accounts interacting and generating trustworthiness. We have a long way to go in this regard but the seeds have been planted. New projects can't magically pop up with a five-year history of social networking connections.
I'm very satisfied right now with development and developers across the boards. Seems like everyone is grinding along at a nice pace and progress is being made, even if we do have to keep asking 'wen' every five seconds.
The main thing to consider is that just because we can do something, doesn't necessarily mean we should. There are big rewards to consider, but sometimes the risk is too great. At the same time there are dozens of priorities and a million different things we need to get done. Which ones get completed first is up to us to decide. DPOS strong.
Market Watch:
I made a pretty big deal about Hive/USDT getting a golden cross yesterday, but so did many other coins as well.
We can see that BTC and ETH have already breached their golden cross, while BNB and LTC will get theirs in a couple days. Both BNB and LTC look even more bullish than BTC and ETH due to already trading significantly above the 99 day average. August is still looking overwhelmingly bullish.