Expect APR Reduction on HBD in Savings
When we think about Hive Backed Dollar (HBD) the first thing that comes to mind is the higher APR which is 20%. I would say it is not just higher instead it is just awesome APR because 20% is something that we hardly get in any project and that too on the stablecoin. The good thing about the stablecoin is that we need not worry about the price in the market and since here it is helping us earn 20% per annum which is just awesome and I don't think there can be any other option better than this to earn more.
This morning I saw this post about HBD APR reduction and the aim is to bring it down to 10%. It's going to be half of what we are getting as of now but there is no deadline or any specific date mentioned for it to happen. sin cities started so I believe soon we're going to see the implementation happening on the APR. I still remember that there was a time when we were not getting anything for holding HBD in savings and it started initially with 3% and continued to grow from 3% to 20% is such an amazing percentage I would say. Because of this higher APR with hbd in savings, many people started accumulating more hbd in their savings because undoubtedly it is one of the best ways to earn on this platform.
In the real world, it is very hard to earn 20% returns on the investment but here at the hive, it is easily possible as of now. I'm not sure of the technical aspect of this and whether it is sustainable for the long term or not but I believe if hbd apr is reduced then people might start the conversion from hbd to hive power/hive. With curation, we earn approximately 8 to 10% and since HBD APR is also going to be almost in the same range possibly it will result in a price increase for high as demand is going to increase. Lots of people have very good holding with HBD savings and I think it is really a good option to go for as per the current APR offering and even people have certain goals to build a better holding in future.
Now because we are going to see a reduction in the APR and I'm sure that many people would be sharing different strategies that how they are going to make it with HBD or HP. HBD is a decentralised stable coin and it has proven its existence so sometimes we see the price drop but it recovers faster because of the hbd stabilizer. I can say that it is better than Luna which was offering 20% and it crashed and people lost a lot of money on this so-called stable coin. While with HBD I have seen people only earning and sharing their money-making journey so in any case HDB is the better option. Many people might not be happy with this APR reduction because we do not want to lose the earnings that we get constantly so it will be interesting to see what they do and whether are they going to be fine with the reduced APR which will land to 10% down the line.
I am more focused on Hive Power (HP) rather than HBD because I think that is a better option as of now. I earn about 8-10% through curation and since the hive price is low, it is good to have more. I had thought that once the hive price goes to $1 then probably I will convert some hive to HBD but now with the reduction announcement I am not sure about it. I will think about it again once the hive goes back to $1 but I expect that the hive price should go up once HBD APR is down. So what are your thoughts about this upcoming change on HBD APR?
Thank you
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I also have the same plan for hbd because I am not holding any hbd ATM but let's wait and see how everything will play out.
I guess many of us have similar plan and now with this change we need to rethink about it since APR wont be that exciting.
i believe it provides ways to avoid powering down by simply holding Hbd, and again, whatever apr they put it on will still be very good compare to what is outside
true that its much better if we compare to the outside world.
As Ive mentioned on my comment on that post. I believe it is necessary in order to be sustainable. You are right. Traditional financial instruments does not offer anything close to 20%. 10% is already risky while 5% is the norm. I think it is ok to have this done.
I agree with your points and it may be good for sustainability but many people don't like such changes where they need to deal with monetary losses. Lets see how it goes further.
Earning about 20% with savings is really a good option. I also agree that this is quite good thing to earn.
Its a good option indeed
Thank you for this information
Glad you find it helpful. thank you
Helpful but not sure if I fully understand advantages of Hive v HBD
Both have different benefits-
If you like to curate more posts then Hive power is good but if you expect good passive income where you want to do anything then HBD is best as it pays you 20% atm.
Thanks for the advice
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I will still wait for hive to be more than I usd then I will think 😜. Thanks for the information, this is gonna change a lots of things. 🙃
I am also going to wait till the time hive is not at $1 and will see that I need to do.
I wrote about the HBD return several times. I think %20 return is excessive. %15 would be OK.
I think yes 20% is exessive and 15 should be ok however now I guess it will land on 12% but not sure though.
Even at 10%, it is a good deal to keep accumulating HBD in my case. We will see what might happen.
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10% is not set in stone, it is one witness, for now each witness have a different APR goal in mind, but many agree in reducing it so I think it is indeed going down, I just don't know where to.
Personally as a witness too I am voting for 16% right now (I was voting for 18% when it was at 20% so it is just a 2% reduction for my witness)
I have seen that different witnesses have proposed the different %. Reduction in HBD APR is okay but I guess this should be around 15% however its dependent on the majority witness agreement.
You posted this right on time. I was talking with a friend about hbd apr. He was interested since it's 20% and now there is a chance that it might be reduced. I have to let him know this before investing!
Thanks you saved me xd. He would have got angry if the reduction happened.
Now since there is discussion to reduce HBD apr so its better for you to inform your friend first. I expect this will land somewhere between 12-15% soon. Glad you find it useful.
oh wow this was what you were telling me about on the discord call. to go from 20%to 10% is huge. I think people might change some of their HBD to hive with hive quite look now. Or maybe something else. They will probably try a new strategy if this 10% really goes thru
Yes, bro, I was talking about this change on the call. It might not go to 10% straight away but I expect it to bet between 12-15% but not sure though.
how sure are u tho. it means they all have to agree to it. I saw some post saying they shouldnt do it like taskmaster
My main focus is to grow my hive power for now, so I can be able to curate more contents, maybe in the future I can think of stacking some #hbd
this sounds like a good plan and I also share the same because I think HP is a good option as of now when we have low price for hive,