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RE: Who will pay the "interest" on HERO?
Am I wrong or are my missing something. Currently prices for the buy orders for hero are all lower than the feed price. Maybe you areb anticipating a demand surge that will cause a price hike to double its feed price because am not seeing it. That is actually my worry asides five percent APR. I hope the PR guys make inroads into people to generate demand or we will be left with excess supply of the Hero exerting a downward pressure on the price. So i keep wondering why you are so sure its gonna sell at a premium.
If you hold a HERO, you can "request settlement," which means you give up the HERO and get paid an equivalent number of BTS (measured by the feed price). So even if many many people borrow HERO into existence, the excess supply can't push the price below the feed price because people would buy the low-price tokens and settle them for a profit.
There is extremely high demand below the price feed because the network enforces the price feed as a floor.
We'll see about the premium. The token still doesn't have much liquidity, so it's hard to judge yet.