Time Lock Vaults for HBD?

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(Edited)

Not so long ago, there was the idea of decreasing the APR of the HBD Savings from the current 20%. There have been plenty of interesting discussions and arguments about it, people have clashing and/or different opinions - some supporting it and others against it.

Everyone has something to say and whilst each may be thinking their ideas are for the good of Hive, I believe we don't really know who is absolutely correct and who is not - or do we?



Anyway, I caught up with the CTT Podcast on the 27th of last month but I had to listen to the replay again yesterday because there was something that I heard about HBD Savings that I wished to get the context of and perhaps re-acquaint my mind of what they were really trying to say.

There was this idea of having time lock vaults for HBD which I thought was just a random discussion until I saw this tweet by 3Speaktv where it mentioned it and asked for people's thoughts:


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Talk about commitment, having more skin in the game, and being in it for the long term. Obviously, the idea is that the longer the HBD gets locked up, the higher the APRs for it.

But of course, that's not just it. Reading between the lines, the reason why this is even being discussed is because it has something to do with the security of the blockchain. HBD is a debt instrument. For every HBD that is created, it is a debt that has to be paid back to the blockchain. You can read more of that here.

At 20% APR, the current waiting period (lock-up time) for HBD Savings is 3.5 days.

Opinions & Discussions

Although the different time lock vault for HBD might just be an idea right now, it will surely be discussed and just as with the HBD Savings APR, it's going to give people here on Hive something to debate on.

The comment section of the tweet is quite interesting. Some are supportive of the idea (suggesting a fee when one wants to get out of the vault earlier), others say it doesn't make sense, and blah-blah-blah. There were a few agreeing with lowering the APR but said time locks are not necessary.

This was an interesting question I read from there:

How do time vaults interact with HIVE's debt ratio?¹

The response it got:

They take a lot of HBD off the market and give a more predictable ability to forecast how much HBD is due to come liquid onto the market and when. Means it helps to make more accurate corrections for the next traunch of APR adjustments²

Well, I have absolute knowledge about how the Hive debt ratio works so I'm not even going to try to explain it further and just leave this here.

Will it happen?

We shall see...

I have the feeling that it will. It might just be a matter of time - it may take long or who knows.

But of course, it is not going to happen until the witnesses come to a consensus. And even when they do, the vaults will have to be built for it to get implemented.

[Disclaimer: I'm no techie or know anything about coding or how things work so don't take my word for it.]

Would I lock my HBD for Higher APRs?

It's too early to answer this now. Will decide when the time comes.

I am personally taking advantage of the current 20% APR on HBD Savings albeit my savings are small and insignificant to the total amount of HBD in savings which is over 7.5M per Dalz last update. I do like the idea of earning passively through HBD Savings and the ability to take it out in a shorter period of time (3.5 days).

So just in case the time lock feature on HBD Savings will be implemented in the future, I will probably just choose which I feel most comfortable with. Or it will depend on the circumstances when the time comes.

Meanwhile, it will be interesting to read more of people's thoughts about the idea of different time lock vaults for HBD. Do share yours :)

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33 comments
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I remember @taskmaster4450le mention this in the past and its a great idea, probably not that complicated to implement, question is how long will it take you to take out the HBD of the contract once its over? the bedt move during bear markets is ro be in cash or have some constant income that can be use to properly dca, some ppl just salty, I will put HBD for long period in the future once Im done filling up some bags I want 🤑✌️

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It may not be complicated to code it but we will have to see when the idea is accepted. After that, more details may come out, for instance, to answer your question about the length of time to take it out once the contract period is over.

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Those who have been taking advantage of 20% with just 3 days of lock-in time won't be happy with this change. You are right that now we need to see which witnesses are supporting the change.

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That is true, without getting deep into the context and just looking at it as it is, most would not be happy. While none has been set yet, it will be interesting to see how the discussion goes.

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Though I am much more of a spender than a saver, I love the idea of different time locks because I would try to maintain:

  1. An emergency fund at 3.5 day rate.
  2. Xmas and vacation funds of 6 to 12 months
  3. Long term savings for the maximum rate.

Anything that encourages me to save better is good.

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That is a really nice way to see it.

I definitely love your idea of having various savings goals and the lock-up periods may as well be great for them. This is actually great!

!CTP

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I don't listen to any podcasts/3speak stuff so thanks for bringing this up.

Personally CJ timelocks on HBD would be a terrible idea for me.
One of the beauties of the current set-up is the 3 day withdrawal period...

Start lowering the APR and introducing time delays/locks then there are other places for a better return.

As my stake and hence my say is sweet SFA I shall just see what happens.

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You're welcome, Tito Ed.

And I see your point there. It has not been formally or officially brought out nor introduced so people are still toying with the idea. But just like you said, we shall see how it goes.

!LUV

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If HBD APR decreases then I might feel okay but at the same time, I feel I want APR for staking the HIVE token also.
But in the case of staking HBD for 2/1/0.6 years, my answer is straight "NO". I would rather love to make the trade and take the risk to gain more profit. I don't love to stake stablecoin for the long term and I am sure that I will change all my HBD into HIVE or I will transfer it to an exchanger or I will keep that idle.
!PIZZA

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What could be good is like low apr wirh inly 3.5 days locking period. Medium apr interest for say 3 months period. And highest apr for hbd to apply in 6 months period or more.

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That would do too :) It's a matter of adjusting the APRs and giving people more and better options.

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I think it's a good idea, sana pati Hive din.

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We shall see kung gawing proposal ito or for discussion lang.

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Hmm, they are proposing drastic cuts, especially for short-term locking.

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By the looks of it, yes although no one has made any official proposal yet.

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Yeah, I know. They want feedback.

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I am not in favour of lowering APR, that this lock out thing is also not understandable to me.

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Let's see how it goes. Meanwhile, enjoy the current APR :)

!PIZZA

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Oh, I won't be happy with the change, as I've always enjoyed the little interest that comes with me locking my HBD. Well, let's see what happens in the future.

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I think people didn't like it as much as I read the comments, people are saying that it shouldn't have been done this way now.

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It's interesting how this discussion will go. We shall see :)

!PIZZA

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