18%.. or 1.5% monthly... Still high but not using 20% as many other project do

It really is a good discussion about the APR value of HBD in savings, for those who are still on the evolution curve like me, putting HBD to yield like this is a great form of income, in addition to that there is still a lot of the hard work of posting and take votes and everything else.

Now, looking at some giant/whale profiles, it's strange to see, for example, 100 thousand in HBD or even numbers larger than this in savings, so you really wonder: what if half of that or all of that was used to acquire HP and and so the profile has higher votes?

Anyway, it's a conversation to spend hours thinking and conceiving ideas, but I believe it would be interesting to put it at 15%, because that way people could do the middle ground, a little on savings and the other focusing on increasing HP.

A great question. I would say 10% or lower would be a suitable level, but the return should be less than the return from Hive Power. HBD understates the current Hive inflation that is officially 70k Hive per day, but we have an increasing inflated HBD which is a hidden inflation of 37,859,926 Hive! This may be only 10% of the supply but seems to have created enough sell pressure on Hive to stall the price very well.

In my opinion, an appropriate interest level for HBD would be around 10-12%.
This would allow the generation of some attractiveness for saving in HBD, but at the same time would not disincentivize activity and hard work in Hive.
It is important to find a balance that encourages active participation in the platform while rewarding savers.
A more moderate level of interest could help maintain the stability and growth of the community.
It's exciting to see how this discussion evolves!

!PIMP

it looks like a scam to the outside or it devaluates all the existing Hive and HBD

That shouldn't be a reason to get a lower APR. I don't like the reason to get a lower API just because of rumors, there should be math behind it! If the volume of HBD starts to go crazy then we should go down... HBD will never be a truly stable coin, it is a token with an algorithm to try to get some stability to the USD. If you want to screw the apr just to convince people that it isn't a scam? Transform it in a real stable coin then... And people who don't come to the project because they say that HBD is is a scam because of the APR will find another excuse not join the project.

What is according to you an appropriate interest level for HBD?

I think 20% is perfect. Any more and the hype will cause people to sell HIVE, but any less, people may loose interest (pun intended) in blogging and curating to earn HIVE, funding contributions into HBD savings.

There are a number of HIVE investments (like pools) that earn more than 20%. If HIVE were converted into VESTS (Hive Power) it'll earn 3% automatically + curation rewards usually around 7%. So 10% APR just for staking and curating. And currently, if you bought HIVE @0.30 and it goes up to 0.36, you've made your 20% without waiting a year! HBD savings is appealing for it's stability, but HIVE is much more interesting for blogging and curating.

These discussions are only happening because the price of HIVE is falling and also because many people think that this APR is hindering second-layer projects. But will adjusting the HBD APR change the price of HIVE? In my opinion, somewhere between 15% to 20% is fine.

I think 12-15% will be good. Indeed too high like 20% will end up causing it to just sit there and accumulate vs interacting and being active in the community.

I think 15% could be good. But sincerely I don’t have enough knowledge about this…

I am grateful for having Liotes Mission like this. It’s a great opportunity to learn. 😃

From my point of view, 12% to 15% seems reasonable. I don't know if it's doing anything significant to bring people into the Hive ecosystem, but even if it is, 15% might do it. While someone who uses Hive Power effectively gets a maximum APR of 11%-12%, 20% seems a bit too much to me.

10% should be fine.
Could be around the hp apr.

I have no hbd in savings (at the moment), prefer to build up my HP first to have a worthy vote :D

10% sounds a bit more reasonable, and is still quite high compared to say a regular bank's interest rate.

20% is fine. We have gone more than 13 months without any incident and I see no reason to change.

From my point of view, the % should not be higher than what HP can offer with inflation plus curation rewards, to be honest. So 12% or lower.

This is quite an interesting topic that made me a bit "furious" yesterday when i saw the 19%. Honestly speaking i changed at least 10 witness votes to witnesses that had set it at 20%. I only have 2 out of my total votes with lower than 20% set APR because i highly appreciate their work here.

I have read way to many comments and posts regarding that matter. We pretty much have one side complaining that people will see 20% and think that this is some kind of scam, or that it will increase inactivity in hive, or that it is not sustainable anymore. These people want an APR lower than 20% which varies from 10% to 15%. The other side is pretty straightforward and wants the APR to remain the same.

My opinion is for the APR to continue being 20%. First of all, if you check the profiles of people stating their opinions, the vast majority that is pro lower APR, either have no HBD savings or have less than 100-200HBD. The people who want the APR to remain the same have from 500 HBD and up, with an average of let's say 1000 HBD. Literally, you can check every profile in the comments it's a pattern :p

Thus, i think a lot of opinions are biased, especially from people that are not hold any HBD :p If you check my account, i have basically the same amount in terms of dollars both in HBD and Hive so at the very least you can't say i am biased.

At this given period, the 20% APR is quite sustainable and you can read many relevant posts regarding that. The argument about inactivity is inaccurate. If in fact, you check most of the users with let's say over 500 HBD they are quite active, maybe more active than others with zero. The people that are a bit inactive are those with huge sums that are in the top positions, these kind of people were also inactive having a huge staked hp and simply setting some autovotes. Finally, people from outside not believe that this amount of apr is real, either way, they will have their doubts, and they need to do their own research. before i started with steemit back in the days i was afraid as well i didn't believe that i could write anything i wanted to and earn money. It took me 3 months to sign in, thus if i did it others could do it as well.

I don't think there is an actual reason to change the APR currently, instead, we can pay attention to the DHF and how some people taking advantage of these money

20%
Hive has become so inconsequential in the crypto world that nobody on the outside cares.

We were told that 20% is sustainable,we even had lynch mobs going after people on Twitter saying otherwise!

(it's more profitable to put money into HBD than to curate with HP)

Not really sure what this means tbh. You mean to put rewards into HBD instead of powering up Hive?

20% is great...

I have a question, what happens to the Hive that is not paid out if the rate is lowered. I say go and market Hive and get it more known.

I would leave it as it is. However, I am not a math whiz, so that's just my opinion.

Personally, I would keep it at this "promotional" rate to attempt to attract new users in. As far as I know, we are nowhere near a dangerous level yet. It would be best to keep it artificially high to take advantage of the rising crypto market.

I had never thought about this topic, in fact I think it is a marvel with the current 20% and I didn't understand why it has been in discussion for so long until I read the comments on this post, now I don't know what to think hahaha. I see it from the point of view of the humblest people who come to Hive to obtain profits to help them in their day to day, especially Cubans, Nigerians and Venezuelans who are a great amount and more than thinking about investing they think about income to survive, in that aspect the 20% is fine, but regarding whales and accounts with much HBD... Now I have begun to notice the imbalance that exists, I believe that the ideal is that the biggest profit is in HP, but I am only a humble servant reading comments and learning 😬

The APR was set at 20% to attract money flow to Hive, but this measure was not very effective. When we search on google for "Best stablecoin yiled opportunities 2024" we see a maximum APR of 16% and HBD is not on this list, only those who know the Hive ecosystem well are aware of HBD's existence.

So the main reason HBD is 20% is not achieving its real objective. Attracting new investors to Hive.

My proposal for the APR rate for HBD should be gamified, the more HP the user has the higher the APR, where the maximum would be 20% (which is the current value). Below is a table to illustrate:


Between 1000 HP - 5000 HP --> 10%
Between 5001 HP - 10000 HP ---> 12%
Between 10001 HP - 20000 HP --> 15%
Between 20001 HP - 50000 HP --> 18%
Greater than 50000 HP ---> 20%


This would encourage users to increase their Hive Power in order to increase their performance in HBD Salving.

Nexo offers around 12% APR on stablecoin staking, here it is 20 for now, but some other projects go up to 14.5%.

So, I think anything between 10 to 15% would be nice and it will slow down the emissions every month, and also the collateral to Hive will be less.

I really don't understand very well where the money comes from to pay this 20% rate, I confess that I was attracted by the 20%, but I know that it is a very high rate for a "safe" investment, I think that even if it drops to some 15% would still be a very interesting offer.

Wow the loites posts get some real engagement. Congrats for having a following that want to engage with the discussions. I think this is important for the community.

I don't know enough or have I read enough to say what is the right % for HBD.

I do think there are a lot of opinions from people who are guessing one way or the other. I think we will end somewhere around 12% in the end becuase it seems like the top witness move together a lot and it will start to lower. I think what i have learned the most from all these discussions is I need to learn more about what direction the witness want to go and make sure I vote for those that align with what I want to happen.

!PIZZA

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I think 20% is fine. We need people to hold onto HBD and give HBD enough value to actually become a stablecoin that people will use. Currently, there isn't really enough HBD to make an impact that much on the inflation and if that were the case, I would expect people to be making more noise about it. However, I think it's better to keep the APR so that HBD can succeed as a stablecoin for now.

Post voted 100% for the hiro.guita project. Keep up the good work.

New manual curation account for Leofinance and Cent

I believe that 20% is fair, the risk of cryptos is still very high compared to fixed income/equities and as the whitepaper was structured like this, we already had an idea of the inflation of the token, probably in the future it could be revised to 18%, however quickly changing the percentage would not be good for the token in my opinion

It is a complicated answer that depends a lot on each person.
Money has two important characteristics: it is fearful and it is intelligent. Or in other words, run away from risk and run towards profitability.
Now it is up to each individual whether a coin collateralized by Hive has a risk/reward ratio of the current 20% or any other figure, whether larger or smaller.
As I have said, this depends on each investor and their appreciation of the risks.

Hmm, I feel that I don't know well enough to decide what is a good balance. Even at 20% APR, we all know this is very small when crypto goes into a bull market where prices can move 20% in a day. So I am not convinced about the argument that it is better than curating with Hive. Hive has the potential to give capital gain, but HBD doesn't. For me, I have always done 50% HP and 50% HBD for my posts regardless of the APR, and I feel comfortable having roughly half of my Hive assets each in HP and HBD.

While I can see how 20% is a bit high (I'm not complaining), I think offering a higher rate based on higher HP hurts the "little guy" who will generally earn less from HP. The people with higher HP are not as likely to need that high of an interest rate and are in a better position to earn with HP. Therefore, I would propose that any sliding scale on the interest rate go DOWN as the HP goes up. I would also base the scale on HP + HBD so people would not move HP to HDB (reducing their HP) to lower their base scale. That way, people with more HP would be encouraged to put that HP to use rather than let is sit in an interest bearing HBD savings account.

20% is fine right now. There needs to be a LOT more HBD in existence if we ever want it to become a useable and recognizable stablecoin. There needs to be tens of millions available for it to ever go mainstream. If and when Inleo starts breaking into the mainstream the attention on Hive will grow exponentially and there will need to be liquidity for new users wanting HBD. Especially if they want any size. What good is it if one $100k order breaks the peg to the upside or knocks it to $.90 on the down? If we're serious about Hive becoming a household name, we can't be focused on "protecting" against the small risk of a downward spiral. Rather we need to be focused on building the framework for the future. 20% has obviously not created a buying frenzy, but it HAS added to the liquidity slowly but surely. I don't see a reason to go higher, but I certainly don't see any reason to drop it.

I believe the APR should be flexible and changed as needed. Right now, I would lower it because there's too much pressure on HIVE from people selling HIVE to HBD. How much I would lower it? At most down to 15%.

I have already commented on something in your post that I think I will comment on here, albeit a little late.
I would go back further, namely why HBD was created in the first place? Then why do curators and authors get rewarded half in HP and half in HBD? This can be changed but by default, it is set like this in all wallets.
HBD had no real use until Savings. And that is one added value of this stablecoin. It is also used, at the moment, in seven liquidity pools. What the APR is there, I do not know.
We also have a buffer mechanism in case something goes wrong, namely the witness consensus and @hbdstabilizer. The APR will already be reduced when necessary. Or increased, as some assume if it is used for bonds (I can't find the link at the moment). I haven't changed my habit of posting at least once a day and commenting on posts personally until my VP drops to somewhere around 70% either.
In short, it suits me at the moment, and for me, it means one passive income that you can't find anywhere else. By the way, just over three thousand users have HBD in savings, the rest don't.

I think 20% is fine, which though on a higher side does attract savings within the existing hivers. The question for the outside world looking as a scam will still persist even if the rate is lower down.
But said that, the rate should be sustainable for a long time. And if the stats say 20% can be sustained then it should be continued.
Again, that's my thought on this subject.

!ALIVE
!PGM

I don't know, honestly. I like the 20%, lol! Some people say 20% is high. We see witnesses signaling for a lower APR. It's now showing 19% and I don't mind, if the change is for the good of Hive.

Thanks for bringing more attention to this topic, I believe it is one of the most important ones for the Hiveans.

From the top of my head, I'd say 3-8%. You've already mentioned some of the keen reasons, I elaborated them in my recent post. The discussion below is maybe even more interesting than the post itself - there are over 100 comments.

20% has demonstrated to be very safe in therms of Debt ratio, I wouldn't touch it for the moment, in particular now that the Bull market will also impact on HIVE
https://peakd.com/hive-167922/@toofasteddie/not-the-best-moment-to-lower-the-apr-of-the-hbd-in-savings

I still believe using 20% Apr is still the best one to use and that which we can use to sustain ourselves

12-16% would be attractive and would not make one doubt the income since traditional banking gives 10%, it does not sound bad to earn a little more but attached to more credible interests that do not make one think of a high-risk investment