RE: What is the appropriate APR for HBD savings according to you ?

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RE: What is the appropriate APR for HBD savings according to you ?

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seckorama in #tribes • last year

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.

last year in #tribes by seckorama

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achim03 last year

If the dept of HBD reaches a certain level, post payouts will be done in liquid hive instead of HBD.

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seckorama last year (edited)

I guess that's what it was meant to be.
When the Hive will be worth $5? 🤔

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godfish last year

Nope, it was meant to be paid in Hive and HBD from the very beginning. However, I believe you experienced the time when ~~Steem~~ was worth like $0.1 and there was no SBD emitted. Since then, we increased the allowed dept ratio, so on Hive, the cap is 30% (I believe).

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seckorama last year

I don't know what the cap is I think 3% of inflation but not sure.

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godfish last year

Nope, the cap is 30% and the current ratio is 7%, see here for further details: https://hbdstats.com

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godfish last year

I would go back further, namely why HBD was created in the first place?

Now, that is an interesting point. HBD (or SBD) has been around since the very beginning and the ~~Steem~~ whitepaper reasons it quite understandable, at least to me.

Put simpy, it is there (or it is meant to be there) to provide stability to the system. And it was also intended as a commonly used currency with predictable value (in fiat), even though it is not technically a stablecoin. Imagine I book a hotel for this summer and would opt for crypto payment. The hotel will likely have prices in fiat, as it pays its stuff and basically everything in fiat. So my stay would cost say $300. If I prepaid it today, it will cost 1.000 Hive. If I preferred paying upon my arrival, it could cost anything from let's say 200 to 2.000. I wouldn't like this uncertainty. Some people might, I am just not that kind of person :) On the other hand, I'd feel bad about paying 1.000 Hive today and then realizing I could have paid way less if I'd opted for payment in the summer.

HBD should solve that, and when we have reversed conversions (so that you can convert both HBD=>Hive and Hive=>HBD - something that does not exist on ~~Steem~~, where SBD actually hoover way above dollar), I guees we could manage keep the price stable even without HBD Stabilizer. If the price drops, you can buy cheap HBD for less than a dollar and then convert it for Hive worth one dollar. When the price rises, you can sell it for Hive and then convert the earned Hive back, taking profit again.

We've already discussed that a lot, I just appreciated your thought and couldn't help replying :))

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seckorama last year

This paying with HBD run pretty well in Venezuela and Cuba. There is, somewhere, also a map where you can see places where you can pay with HBD. Check Spanish language communities.

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godfish last year

I know about that, I am in touch with some people from there (and I even speak a bit of Spanish 😉). However, it is just a drop in the sea. Currently, there's nearly $8 million in Savings. And here's a graph of Monthly HBD transactions taken from this post:

It means, that the interest paid out on Savings deposits this year will be higher than the average monthly HBD transfers. Besides, not all of those transfers are actually payments. In fact, I am afraid that most of them are not payments.

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mypathtofire last year

HBD has been a failure and being promoted as an active form of exchange is dishonest at best if not deceptive.

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godfish last year

I would rather say we don't use it the way we should. It could be a great tool, though. I am just thinking about writting down an article about that soon.

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mypathtofire last year (edited)

I think, like you said, it is only really useful for those paying things in fiat in a future date if you want certainty. For paying straight away, people can do an instant conversion easily like any currency. Then the 20% hubris has come in and taken over.

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liotes last year

3 credits added for the liotes ranking

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