HBD Interest is Great

in LeoFinance2 months ago

Hi fellow Hiveians,

Today I wanted to explore how we can use HBD interest to generate some incentive to keep it!

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Incentivized

One of the things that's often difficult is to provide incentives for people to do something, while at the same time not completely ruining the value of something. We can see the examples of that all over crypto and Hive here itself. If you don't have an incentive to hold something, people will just sell it and crash the market price for it even if it's got a lot of potential. There isn't a whole lot that will improve unless there is some good balance with incentives.

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What I've found really interesting lately was the HBD interest! It might seem like an old hat for some but I just started to pay attention to other parts of my wallet within the past few weeks, HBD interest is definitely one of them. I don't know specifically when it was introduced but I'm glad that it was! I've enjoyed watching it grow and even from when I started this draft post to now, it's increased. I think this is probably a good thing to maintain so that people are incentivized to hold HBD and use it as a currency itself instead of just constantly converting it to liquid Hive.

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I started to spend a little more effort in keeping the HBD I have, on my account. I could definitely use more hive power, as so many of us could, but at the same time I do recognize that we need to also have a bit of a balance between HBD and Hive as far as us using it. My small savings here won't be much yet but I don't know how often I plan on cashing this out.

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The method I've been using is to deposit at least one HBD in my savings account per week for the past few weeks. It's sometimes ended up being more than one if I've had a decent series of posts that are rewarded well, or I stick to just one if I've had some mediocre rewards or minimal rewards. Either way, I've deposited at least one a week. I enjoy the concept of doing that and if my rewards increase, I will probably end up depositing two or more per week. Thinking of how some of my posts were rewarded this week, after typing this I'm depositing two more HBD in it.

After discussing a little bit of it with blocktrades, they are removing HBD interest on regular HBD. You will only earn interest on it if it’s in your savings account which makes sense and is pretty good. This will make it something for exchanges that have an account on here to keep an eye on. They were getting free interest by having loads of liquid BBD just sitting there, not cool I think! Now they have to drop it in a savings before they earn anything on it. Not a game changer but it will make them think twice before depositing or withdrawing.

I also kind of like the notion of not being able to withdraw it easily or quickly. It gives incentive to put it in there to earn interest. Let's see how much interest I can earn long-term with it! What about you, do you think this is a good idea? Have you participated in saving some HBD so that it increases in value over-time? Let me know!

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Posted Using LeoFinance Beta

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I've been buying discounted HBD since the bearish trend began with few hive engine tokens, I've also saved all I've earned from posts in the past six months at least. I'm not sure I have enough to make any significant amount but yeah it's not zero do it's fine. Let the hardfork happen already, I'll like to use the savings thing

Posted Using LeoFinance Beta

That's great man, I've been looking to dip my toes into grabbing some HBD at a discount but haven't got enough liquid hive to do that. I could exchange it for the 3 day stuff I guess and get it at the 1.00 rate but I'm holding out for a spike in the price lol. If it doesn't happen by the 26th I'll process my HBD for hive to participate in power up day. I do like your method though! I'm stacking literally every token I get so my hive engine rewards are all being powered up.

While we are on the subject of hive engine do you know about LEODex and multiplying votes for tribes? I just learned of it a few weeks ago and it's amazing!

Multiplying votes?

My problem with using Leodex is that it requires Keychain to log in and I'm on mobile, so I can't use it...

Posted Using LeoFinance Beta

HBD is certainly get a lot of attention. We will see how well the peg holds. There is another feature being added during the next hard fork.

Posted Using LeoFinance Beta

Yeah let's see how it goes for sure! What's the other feature being added? I haven't been looking closely at the blocktrades posts but I recently saw that HBD outside a savings account won't gain interest.

Have you participated in saving some HBD so that it increases in value over-time?

I've never done anything with my HBD because it's such a small amount. I'll probably put it into savings when I think about it but it won't be a game changer for me. 😂

Posted Using LeoFinance Beta

Yeah it’s cool but it’s a race to the bottom other stable coins are offering more or less but they also have a bigger ecosystem to put any substantial amount of USD in a chain that’s got 20k active users and a daily volume of less than 10 million makes no sense

It’s cool for small amounts but if you try to move any reasonable amount you’ll nail your returns via the slippage because HBD is pretty illiquid!

Short of it being interoperable with other stable coins no ones going to use this feature for any reasonable amount of money

Thirdly since you pegged to the uSD your earnings are diluted by the feds monetary policy which either eats into your preserved purchasing power or in opinion takes it negative if we apply the fisher effect

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I wouldn’t place all of it in the savings, but I would certainly do some. I’m going to slowly add to it over time so that I earn something for just letting it sit there, as much as I would like more hive power I also like to earn on stuff like this.

If you place all of it in the savings you can’t withdraw it for 3 days. For me that’s not ideal for all of it since I do participate in power up days. Other than that, I wouldn’t mind making it work for me.