Signalling for 20% HBD interest
I have updated my witness parameters to signal for 20% HBD interest. Previously I was signalling for 12% interest.
There have been discussions about increasing the HBD interest for a little while. One of the witnesses suggested it may be a good time to push for 20%, and I agree.
While I am only one vote and alone will not change the current interest rate, I am signalling for 20% interest for HBD, making HBD one of the most attractive options in the crypto space.
Currently the interest rate is 12% and it will remain so until the majority push for different interest rate. There has been pretty solid support for this change so I expect to see other witnesses do the same although full support may not happen for a while if ever.
There is some concern this may compete with locking up Hive (long term, 13 weeks) which typically results in around 8% curation rewards plus 2.8% vesting interest. Locking up HBD is only a 3 day commitment.
I believe most people who take advantage of HBD interest will also have Hive powered up. While the ratio may change with an increased interest rate for HBD, I am not concerned. As more people power down, powering up will become more attrac While 20% HBD interest may seem more attractive, you miss out from any potential runs (in either direction) Hive may have. This may be good or bad depending on where the Hive price goes.
Every since @smooth introduce the HBD Stabilizer, Hive has had some really solid economics and support. It has also resulted in locking up millions of Hive to be used for projects to improve the Hive platform. It has worked so well in fact, we have had deflationary periods in the the last year. This the also the result of the massive amount of Hive burned by @splinterlands creating accounts.
Source: @dalz
I believe this change will make Hive very attractive to other options. Pair this with some marketing and promotion discussed by other witnesses, this could be a game changer for Hive.
Posted Using LeoFinance Beta
I agree with the 20% interest rate. It is clear that there is very significant demand chasing relatively low risk yield in stables and 20% would put us at the top of the competition with the likes of UST.
In terms of locking up HBD over Powering up, I think I agree with you that the attractiveness of HBD may actually cause people to buy HIVE in order to convert it to HBD for lack of any real venues outside of Korea where liquidity is ample. I do think that there are probably some debates needed on whether the 5% fee to burn HIVE for HBD is on the higher side, as I imagine that is going to be the main method of obtaining a more substantial amount of HBD. Of course, an increase in the market cap of HIVE triggered by this will allow for more HBD to be printed with the current debt cap, and I am aware of discussions to also raise this, but I still believe the 5% fee for conversion leans on the higher side.
I also think it's pertinent to debate a potential rebranding of HBD to something that resembles "USD" a little more. It's such a small thing but I feel as though people feel less secure with things like DAI and HBD as opposed to UST, USDT, USDC simply because of the (un)familiar nomenclature to outsiders.
Rebranding is intersting idea ... USDH, USH :)
Perhaps HUSD - Hive USD another option.
View more
USHD
US Hive Dollar
Posted Using LeoFinance Beta
USDH is a great idea, jumping into the attention corridor of USDT and USDC
We'd have to decide if we are really committed to USD or not. In the past there was some discussion that the charter is really stable value and if USD deteriorated sufficiently we could switch to something else like a basket of commodities (I'd argue it should still programmatically inflate modestly, say 2%/y). In that case putting too much 'USD' in the name wouldn't make sense.
But on the other hand we could fully commit to USD and if USD really went bad we could create another coin (significant/infeasible development effort to do today at base level, but maybe someday).
On the other hand, I guess if the target changed the name could change again too.
View more
This is going to make HBD better than UST yields on Anchor since they fluctuate between 18-20. Also, you put your crypto into a contract that is prone to hacking. With HBD savings, your keys, your crypto.
No brainer!
What can we do to make other top 20 witnesses signal the same 20%?
Posted Using LeoFinance Beta
I highly suggest a cold wallet, which is perfect for this.
I'm pretty sure you will start seeing more signalling, this isn't my idea and I am not the first. I just wanted to put out a post to raise some awareness.
Posted Using LeoFinance Beta
How does cold wallet solve this problem? Once we deposit our crypto into a DeFi pool, it moves from our cold wallet to that particular contract. I feel dumb now, maybe I am missing something. 😢
Yes, I can see others signaling the same percentage. 20% should be the norm ;) HBD savings is going to be my top favorite savings account now.
Posted Using LeoFinance Beta
View more
You can't make anybody vote how you want. But you can express your view to try to convince and also change your witness votes.
20% is definitely competitive, especially for a blockchain that has been around as long as Hive. I saw yield of 20%+ about 6 months ago for other decent/respectable platforms, but nothing much over 14% recently unless you want to risk liquidity pools for dodgy assets or maybe do full KYC.
I was wondering if I should make an investment into Hive, maybe I'll make it into HBD instead if this 20% pulls through.
Thank you for this update of your witness' APR setting. Hope to see enough witnesses switch to it, to make it effective.
As for the competition between staked HIVE and HBD for the best APR, yes, there will be some moves from HP to HBD in savings if that happens. But at the same time, whoever wants to have a say in governance, proposals and curation will keep HP. And if some HP will end up in HBD savings, that means the curation rewards should increase for the remaining curators, increasing the attractiveness of holding HP and using it.
You are the first witness I see to vote for 20% interest. I saw a few people voting for 15%. Hopefully it will be increased from the current 12%. 20% would certainly make Hive Dollars (HBD) one of the most attractive options in the crypto space.
Not the first to think about it though. I believe @smooth signaled 20% before I did, he was the one who brought it up as a good time to switch.
Posted Using LeoFinance Beta
Overall printing HBD should be considered as an act of balance from the witnesses.... with the main thing to consider the Hive debt.
At the moment HBD is in a great position with around 2% debt. Hive has been conservative in this regards for a long time. With the increase of the haircut limit in the next HF there will be even more safe room.
At some point if we get above 20% debt, probably will be a good time to reconsider the hbd apr.
That has to be balanced with growth. If there are enough use cases forming for HBD and the token is being circulated, creating a thriving economy, then the debt level will not be a problem.
Obviously, if that takes place, the amount of HBD required will be enormous, meaning the demand for HIVE will increase.
As always, it comes down to building. If project teams are doing that and incorporating HBD in, then growth will offset it all. This is where I believe the foundation of Hive differs from many: we have builders here.
Posted Using LeoFinance Beta
I know there is at least one dApp that will be locking up a lot of HBD.
Posted Using LeoFinance Beta
View more
I pitched the idea earlier to @smooth as well - we definitely need a good marketing and promotion for HBD to bring in people to invest for stable returns.
Thanks for the update. I have actually made a habit of checking the witness page about once a week to see who has the interest rate set where. 12% is already incredibly attractive. 20% will be even more so. At 20% HDB can compete against some of Defi, and HBD has the huge advantage of being stable and much more trustworthy.
Yes, I suppose it may soak up some of the money that people would otherwise use to power-up. But, then again, I think many of the tokens and the diesel pools (some of them have just insane APRs, like the PLN one) are already soaking up that money. It's likely the HBD savings takes money people would throw at tokens and pools more than money they would use to power-up.
Another huge advantage is a 20% rate could attract outside interest. It may attract new people to join Hive just so they can take advantage of that rate. Then while they are taking advantage of that, they may look around Hive and decide they like it. That's be a huge win if we can attract new people!
Anyway, thanks Marky for the update. I hope other witnesses follow suit.
How would it be sustainable? Would not everybody just dump there HBD?
Sorry im not 100% into the economics of hive and hbd. But like tera they needed a lot of money to topping up there treasury.
If you have some good links and infos for HBD, i would appreciate it.
It is an additional inflation to the normal Hive inflation. In theory they could dump their HBD much like they can now. Also in theory, many may buy it to take advantage of it.
If it doesn't work out, it can easily be scaled back. It is a witness parameter and requires no changes to the blockchain, witnesses just change their parameters.
Posted Using LeoFinance Beta
Terra is a bit different because they have a fixed treasury that came from a premine. Hive is inflationary by design.
Arbitrarily high interest paid on arbitrarily high savings would not be sustainable, but this isn't that.
And terra is kind of abusive from top holders. They start buy other cryptos in billions.
I would not wonder if they bust luna with it.
View more
In regards to the concerns about the governance.
You might think this change may result in users powering down and buying more HBD. Which is true and real.
In this case, the HBD price goes up. When it goes over $1.05, buying HBD is not worth it anymore. So the conversions start to happen. HIVE to HBD. This results in the deflation of the liquid HIVE in circulation.
So as long as this goes on, we burn HIVE day by day, and the liquid HIVE is getting less and less in the circulation. There might not be any governance concerns because most likely the proportion of HP to liquid HIVE won't change that much.
This change with enough marketing power can result in higher prices for HIVE. And since HBD is stable, we won't have any over-printing issues like the old chain.
And this is not a pure financial change. It's mostly a marketing move.
A good move. This is something that is needed. We have a very low distribution and HBD and it is impossible to have a serious stablecoin with 9 million actually out there.
Adding in a time lock feature would really help. This was the idea behind Hive Savings Bonds. Nevertheless, since we need the HBD having the extra interest is appealing.
We also have pHBD on its way. This is something that is going to help the entire ecosystem. Set off some compeittion.
HBD is very low risk on chain. A strong 20% with minimal risk is hard to beat.
I hope others follow the lead.
Posted Using LeoFinance Beta
Thanks for your opinion on this as a witness. 20% would be great and I suppose it would result in more HBD locked in, even by those who are transferring every cent out to exchanges.
Both have their advantages and a I say keeping a healthy balance between HBD in savings and HIVE staked is the answer.
Posted Using LeoFinance Beta
Question:
Where does the extra HBD come from?
Is it just new money added to the supply or is it taken from other funds already being minted?
Great question Revise. I would like to know about it as well.
Posted Using LeoFinance Beta
It is a new form of inflation.
Posted Using LeoFinance Beta
I thought so - but quite insignificant ATM right with the HBD value being only around 6% of Hive (TMC) - so 20% of 6% = not much of an addition for quite a lot of publicity gain I think.
View more
Its a new inflation, has been around 30k HBD per month in the last few months .... if we add this to the around 2M HIVE inflation atm its extremly low, aditional inflation for now :)
One other question does this 20% to HBDs on savings go on being printed when the Haircut rule comes into play and HBD stops getting paid out as rewards?
Interest isn't affected by haircut but if conditions called for it witnesses could consider changing the rate including to zero. That might or might not be a good idea since it would reduce supply but could also discourage people from holding their HBD and make it harder to recover.
Cheers, if we were going to vary the 20% in any way it would need to be VERY clear I think under what conditions it can vary, easier to just keep it the same!
View more
What @smooth said
In general I see that as a gamble, we might attract people to buy HIVE to convert to HBD. HIVE price might go up. In this case holding HP and HIVE in general might be even more profitable, hence I can see no danger in said competition.
While this group of people will dump HIVE as soon as they'll find the greener pasture, the spike in price might attract another group of people interested in blogging on HIVE. There is direct correlation between price and activity and there seems to be some threshold of earning which attracts masses.
The other side of the gamble is making governance model more vulnarable, however at this point it seems to be far fetched do I'm in favor of bringing 20% APR on HBD. You have my vote!
Sounds awesome.
If we just focus on onboarding and if the HIVE price stabilizes then I think it'll work wonders for HIVE block chain. We might see people come for 20% return and stay for the community.
One downside however just like you suggested is we will lose out on a lot of upside in case Hive price skyrockets..
I would regret being greedy for 20% and in return losing out on doubling the amount in Hive lol because remember in HBD you only have a 20% potential but with HIVE you have the usual 8% curation + 2.83% Vesting increase AND a possible capital growth with technically no limit..
I believe most Hive users will do some of both, and won't do only one exclusively. New users may be attracted to just the 20% APR.
That's true. Just like I said the goal is that they come for 20% HBD but stay for Hive lol
20% would be lovely and I agree with all the positives mentioned in your post but my question is simply this;
Obviously people would be looking to buy tons of HBD on the open markets, how difficult would it then be to hold the peg at $1 and not let the price rocket out of control?
The stabilizer should be able to push it down. If the price goes over $1, the stabilizer will use the HBD to buy Hive and send it the DHF.
Posted Using LeoFinance Beta
If you and Smooth are confident of that then it should be a genuine game changer for Hive, especially as this ought to generate a lot of positive publicity.
Appreciate you taking the time. Thank you :-)
20% is really high but I won't say no to it.
Crypto.com has reduced their rates drastically and I have funds looking for a high interest home.
If I signal 20% too do I have a conflict of interest?
I've seen a lot of talk on Reddit about crypto.com reducing their rates.
As a witness, it is your job to signal what you think is right. No one party has enough power to swing the vote in their favor to benefit from it.
Posted Using LeoFinance Beta
Seems like Binance is the only exchange with enough volume to support transferring six figure sums from Crypto.com to HBD.
Am I missing another method that can handle this sort of volume?
View more
This sounds like a great idea to me. If we want HIVE to become mainstream, we've got to do some things that make it too good to ignore. We've already got the fastest, most decentralized blockchain in existence, in my opinion. This just adds another arrow in a quiver already full of them.
While I think the true explosion in HIVE is still a few months away, I do believe it is coming, and having a stablecoin paying 20% will add a major benefit to anyone looking to get involved in the ecosystem.
Because of this, I just added @smooth.witness to my witness votes bringing him very close to cracking the top 20.
I'd like to mention my view here, and why I'm still voting for 7%. There are a few reasons for me being "conservative". HBD is a debt, and one way I like to view it is that it is like a bond – it provides current liquidity at the cost of future payment. Interest rates on a bond are typically represented by the risk (of default, or lessened payments) associated with said bond.
Do you think Hive is currently a risky ecosystem? Presently, I do not.
The choice rate is a magic number regardless, as there is not a scientific process to determine a correct number. It is hard to anchor it to anything other than to related projects, or to the backing itself, the USD. Other DeFi stablecoins we might compare to can have extraordinarily high risks. It cannot be a perfect comparison for interest rate because the fundamental systems are different, and thus so should be investor risk tolerance.
Compared to the USD, Series I Savings Bonds are currently at 7%. This in my mind is a good relative comparison for stability in USD. The average stock market rate of returns is also often quoted being between 7-10%, which is a good comparison for growth rate. So, I feel comfortable with my choice of magic number for now.
The second reason I haven’t changed is precisely because it is not necessary for all the witnesses to use the same number. Having different beliefs and presenting that in voting is a feature, we do not need all witnesses to tow the line to determine this number, since it takes the median. Better, it shows other projects and the community that the witnesses can have different opinions, which projects diversity and decentralization.
I’m perfectly happy with the rate being higher as a sort of promotional plan or marketing, and the ecosystem is certainly well equipped to absorb a higher debt presently. However, since we do not need all witnesses on board, and I have (at least in my own mind) good reasons to suggest a lower rate -- I am happy to be an out-voted counter-opinion.
What is MEDIAN?
You're the first person I have seen in today's articles about HBD to mention the word "MEDIAN" which is clearly indicated on the Witness page as the mathematical method used to calculate the HBD interest rate.
For those who want a definition of MEDIAN, you can go to https://byjus.com/maths/mean-median-mode/ and see that
So if we have this list: 1 3 4 7 7 8 9
the Median value is the middle value, which is the first 7, so the Median is 7.
I assume this is how the HIVE code calculates the interest rate - by ordering the witness's signaled interest rates from low to high and then picking the middle value.
In top 20 right now
Then the HBD APR will go up to 15% or 20% any way :)
Really a big consider to put more HBD for staking now
Posted Using LeoFinance Beta
View more
Correct
View more
Where is this money (20%) coming from?
Inflation
I'm assuming inflation of Hive? Inflating a stablecoin doesn't make sense, the money has to come from somewhere or it's no longer stable?
Posted via D.Buzz
20 is really huge !
Really interesting things are going, that plus the Ads revenue from Leofinance !
That's the moment to bring investors and users ! !PIZZA
Posted Using LeoFinance Beta
PIZZA Holders sent $PIZZA tips in this post's comments:
@elyelma(1/5) tipped @themarkymark (x1)
curation-cartel tipped themarkymark (x1)
vikbuddy tipped themarkymark (x1)
ykretz.leo tipped themarkymark (x1)
Please vote for pizza.witness!
That's a great news. I have already been keeping my HBD in savings.
20% is gonna be a changemaker for HIVE☺️
!PIZZA
Yeahp, cool. @taskmaster4450 & @taskmaster4450le seem guilty to me, very guilty.
Guilty of what? Wearing white after labor day?
Posted Using LeoFinance Beta
what is wrong with that. Blends in nicely with the snow.
Posted Using LeoFinance Beta
View more
I am guilty of a lot of things so there is a good chance you are right. Without the particulars, hard to either confirm or deny.
Posted Using LeoFinance Beta
Conspiracy to increase wealth of HIVERs by printing debt (HBD) on the HIVE Blockchain.
To encourage the Power Up, and decrease the Power Down, I would also suggest an annual increase in the interest rate on HP by for example 1% (from 2.8% to 3.8%, 4.8% etc.). The bonus percentage will reset in the event of a Power Down.
This would counter the fact the inflation rate is dropping yearly.
Posted Using LeoFinance Beta
The inflation rate of HIVE is secondary as set by the blockchain. That said one reason not to change it is credibility. A chain that keeps monkeying with its rate of distribution is not going to be credible.
With the conversion, the inflation of HIVE will be altered as people convert. Over the past year, according to @dalz, we actually saw a decrease in the amount of HIVE outstanding.
You bring up a good point which is worthy of exploring: providing further incentive to power up. But that has to be done in other ways in my opinion.
For example:
instead of burning HIVE on account creation, put that towards those powering up.
charge a small fee on conversion that go to the stake holders
If this is something that is serious, we can explore it. I am sure the community can come up with a lot of good ideas.
Time to apply some business building techniques to Hive.
Posted Using LeoFinance Beta
Really a great thought here. In fact this post made me to notice that HBD savings at 12% was still giving a higher interest to Hive curation.
The balance is really crucial.
Posted Using LeoFinance Beta
Yes, your proposals are absolutely acceptable. many users earn HP for free from their posts, and then use it to sell it on exchanges, after doing Power Down.
It is something that should be discouraged. So rewarding stakeholders is an extra stimulus.
Posted Using LeoFinance Beta
I wish Splinterlands didn’t take most of my HBD away for needing things to buy hehe. I think 20% interest is pretty epic for us, let’s see if we can get the other witnesses on board!
Posted Using LeoFinance Beta
One of the best.
Posted Using LeoFinance Beta
The investors dilemma. Where to put your resources.
Hive is offering a lot of choices these days.
Posted Using LeoFinance Beta
Will it be too great of a dilemma? Is there such thing as too many choices? I support experimentation, sure. As long as we're quick to admit mistakes and correct them I have no problem with a little test. At the end of the day HIVE is diversified enough to afford some trial and error.
View more
Dilemma indeed! I've been slacking on some of the other opportunities but hoping that I can make up for that with decent Splinterlands investments lol time will tell though!
It’s the right decision, the only thing is missing is adding more visibility to what we are doing here
This was specifically talked about and would be the one-two punch for this change.
Posted Using LeoFinance Beta
I think at 20% and the safety of owning your keys so far less risk than any defi.
Plus there is absolutely no third party risk.
The "counterparty" is the code on the blockchain. There is no application involved.
Plus the payout is in more HBD, not another token which brings another layer of risk.
20% with very low risk is what is being proposed.
Posted Using LeoFinance Beta
B20. This is the carrot that can become bait for donkeys that are not yet looking towards the Hive).
Posted Using LeoFinance Beta
So are you saying we are all asses?
Posted Using LeoFinance Beta
Lol, you turned my phrase hard, although, probably, when you don’t see the interlocutor’s face, this phrase may look like this. I was talking about those who believe that the hive is a soap bubble and turn their heads away from it)
I don’t divide into those who invest in the Hive, or in LEO, or another coin of the bottom of the blockchain, these are people who meaningfully bet on something, but, one way or another, they are already in the Hive. It was about potential, new users, sometimes very stubborn in their fears.
Yes, I must take into account that in English there is no diminutive, affectionate mood for the word donkey, as it is in Russian. on which I think)
View more
This is great News. I will definitely switch over to HBD for the 20% APR.
20% starts to make me interested now. With 12% I felt no attractive sense to building HBD funds for passive income as I could most likely make more either through defi or simply through curation, and the interest on the hive. 20% starts to throw some of that out the window and starts making it an attractive option.
20% is amazing, but 12% is pretty damn good and shields you from risk of Hive going down, but you lose the gains if it goes up.
Posted Using LeoFinance Beta
HBD savings eliminates any 3rd party risk that is associated with DeFi. Plus it basically negates any volatility issues that we see with other DeFi applications (i.e. token price crashing).
Posted Using LeoFinance Beta
Great Post!
!1UP
You have received a 1UP from @luizeba!
@leo-curator, @ctp-curator, @bee-curator, @vyb-curator, @pob-curator, @pal-curatorAnd they will bring !PIZZA 🍕
Learn more about our delegation service to earn daily rewards. Join the family on Discord.
Interesting - I'm currently keeping almost nothing in HBD because 12% isn't attractive enough (compared with powered up hive, 2nd later tokens and other crypto stuff) - 20% would definitely get my interest though.
I believe it's important, considering that many financial sectors are already playing around with well above 15% on savings, to remain relevant and attractive would mean that it has to cross that mark.
20% is a good signal, any chances hive Is getting an higher incentive for staking?
https://twitter.com/viennalex/status/1512767085889392643
https://twitter.com/KennyCrane/status/1512921263186104323
https://twitter.com/HarlowJourney/status/1513368309864886273
https://twitter.com/itsjustmarky/status/1513463735691718656
The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
I agree, considering HBD is similar to UST, it should have a comparable APY.
Someone mentioned the APY on UST is going down. Not sure if that is true but it makes sense considering the number of tokens out there and how they structured things.
Posted Using LeoFinance Beta
Do u have any thoughts on putting a proposal out to use 1M usd of the dhf to buy btc and then put it into a multi sig account that guarantees a 1:1 conversion to HBD on hive internal market thus partial backing HBD with btc? Bitcoiners would likely start to see hive as a btc side chain at that point. Especially if we had a way to tip content on hive with lightening (which is basically already ready with BoL’s V4V system)
I'd support this with a lower exchange rate, essentially a backup, maybe 0.98 or so. This would also have the advantage of avoiding depleting the BTC backstop quickly. Right at 1:1, a lot of BTC might get redeemed. At 0.98 , it won't unless there is real stress on HIVE/HBD.
In the event that the BTC does get redeemed, this accrues a small profit to DHF, which always values and can exchange between HIVE/HBD at 1.00
View more
Great idea, I would definitely support it.
Would love to see or learn more about these discussions! Is there a link or are these private chats?
If there was a link, wouldnt they be public chats then. 😁
Posted Using LeoFinance Beta
Right! Which is why I asked if there was one.
What is a super majority for this to get implemented, and will is just happen when this majority is reached?
Thanks in advance
Needs 11 of the top 20 witnesses.
20% sounds great. I already put all HBD I earn from blogging into savings for 12% .. fatten it up and I might consider selling some of my other assets to deposit
Interesting thoughts.
@geekgirl already mentioned this change you decided to call on.
Also, there is a lot more awareness in Anchor Protocol and Terra than I suspected. Very nice.
!PIZZA
- EVm
I think it's a good idea.
This approach assumes that people speculating on HBD or profiting on the new APR would contribute to anything long term. Quick liquidity? Sure. Volatility? Maybe. Quite a few new signups? For sure! But will they ever become active users and if they do...will they share anything to HIVE other than speculation on their investments?
I think the money will come with the active userbase. A website where people mostly talk about crypto, lots of text, that's not attractive to the larger crowds these days. Let's make an interface for reels on a loop too...
Instead of raising the APR for HBD, if more active "regular" users is the goal, let's assign 1% of the pool to external marketing or create a proposal for funding. Let's buy a few endorsements from Cameo, get a few celebrities saying they signed up. Get people in here to actually use the network and its many tools, then the money will come, then speculators will come. Offer something exclusively to speculators and that's what you will get, they will bail the minute someone else offers 21%.
I hope I'm wrong.
I disagree, this makes Hive competitive to the biggest projects in the Defi space. Granted we need to work on our onboarding, but this gives us something to talk about.
We already have funds for marketing (DHF), we just have to use them on good ideas.
Posted Using LeoFinance Beta
I was not aware DHF could be used for marketing, thanks.
Part of me just feels like HIVE is too good already, at this point, with everything we have...I mean we have the holy grail of crypto, we have recurring payments!! You're making money with basically everything here, you're getting paid to give money away... there are tokens, it's open-source, seems like there's even NFTs, and this thing has been running for 5+ years so it has been tested. So many lives have been changed by HIVE, what is going on? I don't think the offer is the problem, no one else offers that much, no one can get a non-crypto user onboarded as smoothly, it's hard to even get a transaction confirmed as quickly as it happens on HIVE. Crypto-wise it's simply a masterpiece.
If anyone reads this and wants to help with a marketing proposal for Cameo, please, help me bring this idea forward to get funding for it, help me negotiate with the celebrities, the tools to connect with and hire those influencers already exist. Most people aren't like you!! Most people don't take risks with things they are unfamiliar with, most people just follow...
This has nothing to do with speculators. This is actually the opposite. It is part of fixed income market. It caters to a completely set of investors, or at least investment dollars.
Thus, risk/reward has to be taken into account. Will some jump a the chance for another percent? Sure. But at what risk?
HBD is one of the lowest risk opportunities out there.
It is:
If people are willing to increase their risk, then they can hunt for greater yield.
Plus, another thing to keep in mind is this is moving in the direction of collateralization. When it comes to that area, the risk factors I mentioned are vital.
This is helping to open up an entirely new opportunity for Hive. Accessing these two markets, fixed income and collateralization, could move things in ways few on here can even comprehend. We are talking in trillions when referring to those markets, not millions or even billions.
Posted Using LeoFinance Beta
20% Interest on HBD with 3 day locking is too good and it will make HBD the best stable coin among others...but will it be a problem in terms of inflation
How is that?
Posted Using LeoFinance Beta
When we have more HBD getting paid as on interest, there will be pressure on Hive as more and more Hive will be sold for HBD and will there be a problem on inflation when there is more conversion from Hive to HBD
View more
I think the jump in interest rate is too high a jump up, I think it should be increased to 15 % that way people like @taskmaster4450le and others within his calibre to analyse the performance of HBD after it is increased to the 15% rate.
I never said 15% is where the rate should be. When I put that out there, it is what I thought the Witnesses would raise it to after the hard fork.
The jump to 20% is perfectly acceptable. In fact, we could go much higher as we need a lot more HBD. For example, how are we going to get 10 million HBD in a liquidity pool? The answer is from conversion. There is no other way.
Once we have decent liquidity, people can start to develop use cases. HBD should be the de facto payment token that every application on Hive uses.
Posted Using LeoFinance Beta
Great idea here setting up HBD for 20% savings. WE know this will build more trust for HBD and we'll have more new investors especially as unlocking time for HBD is just 3 days.
With the point you've raise here, what measures do you think will help maintain a healthy Hive? There will certainly be a drift from Hive to HBD. I know that making 9% from Hive curation is rather not as selfish as making 20% from HBD saving.
My suggestions for Hive since its unlocking session is longer - 13 weeks:
Just my unprofessional thoughts though.
Posted Using LeoFinance Beta
The new account creation fee certainly should be directed at HP instead of burned. No reason to burn money.
Are you talking about the inflation rate staying the same and the distribution is adjusted based upon staking time?
My idea is to charge a minimal fee on the conversion (a half a percent might do it) both ways. This money would them be directed to the HP to help increase the return. If people use conversion like an exchange, then it could add a couple percent to the entire return.
Posted Using LeoFinance Beta
Locking up HBD for 20% interest could be a great move over holding Hive for a relatively stable $1. It can also be a very bad move if Hive goes to $2 or even $3 again. If Hive goes to $0.50, it turns out to be a brilliant move.
Posted Using LeoFinance Beta
fully agree with this! HBD only grows and stabilizes with more circulation and 20% should do just that!
Just a random thought, while 20% APR for HBD savings sounds nice, is it possible for an increase in curation APR for Hive power? This way a balance is created so people don’t rush HBD savings than powering up Hive.
Curation apr is a factor of reward pool size and how much HP actively voting. This would likely have sone minor changes to curation if sone power down to buy HBD.
I like the idea of 20% HBD interest. As long as it's substainable then should be ok. But perhaps pay a penalty if cashing in early. Or a guaranteed percentage first, then after so long, get the extra !
Interesting.. Starting to be a pretty amazing interest opportunity
Posted Using LeoFinance Beta
You could say it is going to get interesting.
20% sounds good, but I fear fewer people will power up their hive then.
Why would they do that?
Keep in mind, Hive Power is still needed to operate on Hive.
That means there is going to have to be some HP in the accounts even if they just are here to use HBD.
Posted Using LeoFinance Beta
That's good, more for the ones that do. But the balance will change, if say for example we have a massive power down for people to take advantage of this opportunity, a few things will happen.
The price of HBD will climb due to demand. This will cause the stabilizer to sell HBD for Hive, at a profit, benefiting the DHF. This will likely keep pushing the price down closer to $1.
Curation rewards will start to climb due to less Hive Power being used to vote. At some point, this will become an attractive opportunity potentially resulting in more power ups again.
The amount of users using the Hive->HBD conversion will go up, of which 5% of this is burned thus decreasing the supply of Hive. This will be used to lock up for ~20% interest or more likely sold for Hive for a potential profit.
Posted Using LeoFinance Beta
HIVE can generate a 1000% return, in fact it has in past multiple times. HBD can't. They're two very different risk-reward propositions.
Very cool.
Rehived and I have sent you @pishio.
ohh sounds good to us!
20% APR , mouth watering in every aspect . In the midst of the ruckus of some stable coins tying to go decentralized, if this could be achieved by Hive attention will effortlessly be focused on this purposeful platform.
that would sweeeeeeeeet :)
20% interest on HBD would be a game changing feature for Hive.
Look no further than Luna and UST
Posted Using LeoFinance Beta
20% on HBD will be just amazing and I am sure that this will bring a lot investors over here to earn this awesome APR.
Posted Using LeoFinance Beta
This would put it on par with Anchor Protocol on Terra.
Thank you for your witness vote!
Have a !BEER on me!
To Opt-Out of my witness beer program just comment !STOP below
View or trade
BEER.Hey @enforcer48, here is a little bit of
BEERfrom @isnochys for you. Enjoy it!Do you want to win SOME BEER together with your friends and draw the
BEERKING.As a believer in HBD, 20% sounds great to me!! Go Hive!!
Posted Using LeoFinance Beta
Power up is the best option than to power down.
Posted Using LeoFinance Beta
That sounds awesome if it all gets pulled off, keeping my fingers crossed!
20% on HBD sounds amazing and will be too good to be true will the locking period also increase? And if it eventually happens, more investors will definitely troop in
Posted Using LeoFinance Beta
Totally agree with your views and think the 20% HBD should at least be given the green light for now to see what happens. When you are competing with other stable coins you have to have a decent offer in order to temp them to move from where they currently are. 12% is still great but 20% should make a huge difference when luring new people into the Hive economy.
Posted Using LeoFinance Beta
@themarkmark eso es muy bueno, a pesar de ser nuevo en la comunidad, entiendo que la tasa de interés subió de un 12 a un 20 para los testigos. y al ahorrar en Hive Wallet,cual seria ? es mejor que la tasa de interés en un banco..felicidades..
With this, it will spark more interest and attention to HBD and it would be interesting to see how it will affect the HIVE too.
I think most people will take advantage of the increased interest rate at the beginning and may weigh their options at a later time or depending on the price of Hive.
Posted Using LeoFinance Beta
Many fear change but change promote move and it may promote others to hold HBD and Hive.
Glad I am holding HBD as we speak.
It is about time we try another number of the percentile
!BEER
Posted Using LeoFinance Beta
View or trade
BEER.Hey @themarkymark, here is a little bit of
BEERfrom @pouchon for you. Enjoy it!Did you know that you can use BEER at dCity game to **buy dCity NFT cards** to rule the world.
A reason to pay attention to which validators to vote for 😀
not sure how how it all works, but if it works 20% is cool
This are indeed very interesting news! Let's hope the other witnesses get on board with it. I feel that with 20% it could attract more investors on Crypto that might not even care much about the social part but that investments would definitely help with the HIVE value to maybe get higher and stay stable at that higher value. :D Thanks for the update :D
This can be very good to Hive ecosystem.
I look to HBD like UST on Terra.
One thing that a lot of crypto inverstors are looking it is attractive APR for stable coins and currently due to the HBD Stabilizer it is very stable.
I really think that 20% HBD APR can bring more spotlight to hive ecosystem.
Posted Using LeoFinance Beta
print it!
Genius idea, glad I have some HBD
I'd like to think 12% APR on HBD is ideal, but with the USD suffering severe inflation, it doesn't hurt to boost the APR to over-compensate a bit on that front.
It seems the discussion is also shaping towards the wait time to unlock HBD savings. Witnesses can decide but the ideal would be to continue with three days of unlocking your assets giving the flexibility traders/users want with their tokens. UST is maintaining the return on APR despite the hacks and contract risks.
Posted Using LeoFinance Beta
Changing from 3 days would require a hardfork.
Thanks for the info. I did not know that. 3 days works for me.
Posted Using LeoFinance Beta
A very necessary change to benefit the entire Hive ecosystem.
Posted Using LeoFinance Beta
This will be amazing and I hope it brings about more success to hive. Can't wait to see hive in
Posted Using LeoFinance Beta
I fully agree with this. The 20% APR move for HBD will probably open the door for a lot of future possibilities for Hive!
Of course, there are lots of people who are not even into HBD savings scheme cos they refer to the 12% as low or because they tend to transact with their HBD fast. If it were 20%, it will drive more users to the savings, inturn more HBD are saved - staked - and more CommItment, financially. @themarkymark this is a great idea for me..
Posted Using LeoFinance Beta
My wallet says 20% APR for HBD. So this is here to stay?
Posted Using LeoFinance Beta
Changes depending on the witness round.
Reblog this information posting
I'm not sure about the economics of the situation but everybody here seems to be in favour of it so I will go with better minds than my own as to the consequences of the move.
Things are building out nicely on hive so it would be great to start adding more incentive for people to buy and stake hive to their accounts.
Has there been and talk of ideas similar to LeoFinance ad sharing scheme that takes the revenue generated by the site and pays it to the stakeholders on a monthly basis which increase their Leo Apr.
I saw somewhere in the comments about taking the market conversion fee and doing the same with hive. Or having a powerdowns penalty for a 1 week pwerdown with the penalty redistributed to the other stakeholders.
Just thoughts but looking at ways to add extra value to our hive stake that are sustainable in the long run.
External funds are still the way forward for growth of the eco-system and attracting new users for the benefits.
Posted Using LeoFinance Beta
Who is going to argue with that?
Awesome job and excellent move making stability as well as having people increase savings.
Thank you very much awesome job!
Woof!
Thanks for signaling for the 20% as I discovered today it was already supported and went up to 20%.
Although I can't put much into savings for another 2 months, I sure will start filling that savings wallet once settled in Spain!
Writing on Hive, earning part stake and part HBD liquids, and then moving it straight into HBD savings for another 20% yield on top, no brainer!
Posted Using LeoFinance Beta
Perhaps, the 3 day lockup could be changed to 1 week or longer?
Or even keep 3 days for 12%, but increase to 14 days for 20%?
Either way, I think it is a great initiative if the ultimate goal is to increase the HBD ratio to Hive. Anyone with even a passing interest in value should see the value here and the ability to compound in a relatively low risk way (low risk for Crypto that is)
One thing they should do is to make HBD available for sale in other exchanges, that would be incredible.
Posted Using LeoFinance Beta
Presently it's very difficult to convince our prospective partners to offer investment on Hive for their user-base (in the case where the partner is defi) without significant returns from staking activities aside from curation. It is a marketing move in the end. I was signaling 15% before and will finish deliberating and likely signal 20% by end of day.