HBD Savings APR is oscillating between 12% and 14%

The price of Hive token from the Hive blockchain was hit hard in this bearish times and now is hovering around $0.0629. The community is looking into solutions to improve its value and one of it seems to be also lowering the APR of the HBD Savings to a level that doesn't negatively impact the Hive price through selling pressure of the paid HBD interest, but still keeping it appealing to stablecoin investors (like myself). Thus, I am seeing that the price of HBD Savings APR is oscillating between 12% and 14%.

For me an appealing HBD APR is a value starting from 10% upwards. So even if we had it for a long time standing at 15% and after that moving to 14% and now oscillating towards 12%, I still find it at good levels in order not to make me want to move my funds out of it. Whether others agree or not, I believe that HBD Savings is a strong instrument to keep around investors that diversify their portfolio also in stablecoins. Having a stable at blockchain level itself is simply one thing that Hive blockchain offers above other blockchains.

When it comes to HBD stablecoin on Hive, I see following benefits impacting this ecosystem and why myself I am appreciating having such an instrument and so easy to use.

• Price stability compared to volatile HIVE
• Predictable payouts for authors and curators (as long as the HBD debts is kept in line)
• Attractive savings yield (APR) incentivizing compounding and holding
• Increased liquidity and transactional utility within the ecosystem
• Acts as a hedge during bear markets (like the one we are experiencing)
• Strengthens Hive’s internal economy and users and value retention

Another thing that I see it as an opportunity as that the HBD Savings earnings can be used to buy HIVE when the price is low enough (like now) and ensure higher returns by switching from one to the other. Such flexibility offers more investment movements which is something investors are looking for.

With the current bear market as I have a good stash of HBD parked in the HBD Savings, it makes me feel good having a stable revenue stream that it either compounds or I can use for other investments. Keeping the HBD APR still appealing (over 10% in my opinion) is one thing that makes the Hive blockchain weather better the bear markets and ensure investor's retention.

Posted Using INLEO