Hive witnesses support for 20% APR for HBD has reached majority
Witnesses operate consensus nodes and ensure the correct behavior of the Hive blockchain. While doing this they are also empowered to determine the HBD APR% by setting this property for the represented witness and when the value for it is computed as the median value of the Top 20 + 1 backup witnesses. And lately, the ball has started rolling on a proposal to get to an APR of 20% for the Hive stablecoin - HBD.
If we do a short analysis on the HBD APR% set by the Top 20 + 1 backup Hive witnesses we have the following support levels.
- 20% APR - 11 Witnesses supporting it
- 15% APR - 2 Witnesses supporting it
- 12% APR - 6 Witnesses supporting it
- 7% APR - 2 Witnesses supporting it
As you can see we already achieved a majority of 20% and that is also reflected in the Savings account from your wallet.
I think that at 20% APR HBD is a great stablecoin to hold and invest in for a passive revenue stream. It surely competes with the stablecoins from other blockchains and I am sure that for its simplicity it will capture a hefty marketplace from it. Now we need to let the word out and market it to the moon and I think this entire ecosystem will have a blast on it. I don't know about you, but now is clear that saving HBD has become a great investment!
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I checked this morning and I saw 20%, this feels a bit jittery, and I hope we're not hurting Hive the token with this move.
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Actually, I am expecting Hive to strengthen up as more will go for HBD the Hive supply might decrease which could push the price higher. Anyhow, the witnesses can adapt at any point in time.
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Well, you're right about adaptability. I guess this is what makes the move very flexible.
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Now it's time to increase the HBD savings, people might then remove the HP and have just in HBD...
We'll need to see how it plays out, but I think this benefits the system and makes it more balance. Hive for governance and HBD as a stablecoin that produces really well.
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Yes and as an investor we can diversify by keeping in both.
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Will be super interesting for sure.
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You are right on that, I couldn't believe that witnesses reach 20% APR consensus from yesterday. A move well done and if we could get HBD listed on an exchange or have it on decentralized exchanges would be a blast to move funds.
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All around us, exchanges are lowering rates on stable coins, this doesn't seem a smart move imo. 15% is the sweet spot for compounded returns and 20% is insane.
I wonder how long this will be able to hold.
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I think we are competitive enough and not sure why you say that exchanges are lowering rates for stablecoins. Maybe centralized exchanges, but decentralized ones have returns way above 20%. I think it is a sweet spot for HBD at 20% and it could vitalize the entire Hive ecosystem with that!
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I'm maybe just cautious about the impact to the hive ecosystem. We can see similar experiments playing out with the UST ecosystem on anchor.
It only takes another 7,5% rise in the HBD Marketcap to cause a haircut on HBD.
https://hive.ausbit.dev/hbd
The increase is more attractible and the 20% is good, I see it as a way of attracting more investment to the Hive blockchain
The simplicity of the HBD Savings account to get 20% APR for sure should bring more investors. We just need to make HBD more accessible to acquire as it is not listed on many exchanges. Getting it on Binance surely would make a blast!
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This would make a lot of more achievement for hive blockchain, Making HBD to bee listed on many exchange platforms and Binance not excepted.
Good move
Awesome to see. Thanks for the info. Last I checked it was 15%
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Yeah, 20% is an awesome return, you simply cannot ignore it!
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If this in any way hurt Hive can the interest be reduced to create a balance or a means of earning more Hive APR is created to create a balance
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Right, we have an easy mechanism to lower it if something doesn't work well. Although I expect the results to be beneficial for both HBD and HIVE, expecting an increase in price for HIVE due to this.
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That is awesome. I didn't know about it until now. By having witness to approve rate for HBD. You get agree vote on majority and the APR becomes valid !
Great Post!
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Wow, I didn't realize that the APR already went up to 20% and I just saw it in PeakD. I wonder if people reconsidering their witness votes played a factor in this or not.
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I care about my stable coin investment in crypto to be flexible in the times when we have nice buying opportunities. In the portfolio, the percentage of HBD is going to be increased by everyone with %20 APR with HBD 😎
Moving the APR for HBD to 20% just sort of snuck up on us!
There has been a bit of chatter here on LeoFinance about what doing this would mean, but I had no idea that the witnesses were actually considering it.
For me, I'm super excited about the change and agree that it could be super bullish for the price of HIVE itself.
Surely some of the larger crypto media outlets pick up the story on their own.
A truly community run, decentralised algorithmic stablecoin offering 20% is REAL news.
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