TxCollateralizedConverts
- collateralized_convert
Name | Description |
owner | The account requesting the conversion |
requestid | A request identifier |
amount | The amount of HIVE to convert |
amount_symbol | HIVE |
The
collateralized_convert operation is similar to convert operation (see TxConverts), and instructs the blockchain to convert HIVE to HBD. Half of the HIVE amount is converted immediately into HBD (using the minimum witnesses price feed for the last 3.5 days) and sent to the owner.
The remaining HIVE amount (the collateral) is put on hold till the actual conversion takes place 3.5 days later.
The HIVE/HBD price variation risk is cushioned by an extra 5% HIVE fee that will be applied to the collateral.
When the actual conversion takes place (3.5 days later), HBD is printed out of thin air, the equivalent HIVE amount (using the median witness price feed for the last 3.5 days) and the collateral fee is burned, and the remaining amount is returned to the owner.
Example
- let's say the current HIVE price is $0.10
- the user issues a
collateralized_convertoperation with 2000 HIVE (worth $200) - 2000 HIVE are temporarily removed from the user wallet.
- the user gets 100 HBD (half of 2000 HIVE => 1000 HIVE converted to HBD) immediately.
- the remaining 1000 HIVE are put on hold as collateral
- At the end of 3.5 days, if the price of HIVE hasn't changed, the user gets 950 HIVE back, that is 1000 HIVE - 50 HIVE (the 5% fee on the 1000 HIVE collateral)
Last modified 1yr ago