Is HBD Interest Tailored For The Sake Of Compounding Alone?

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My HBD interest arrived today, and I found myself counting down the hours, minutes, and seconds.

This was because my interest for last month was just a bit over 22 HBD but this month it's about 27.697. I added over 250 HBD through the period of 30 days, this includes the 22 HBD I got in April. Now it's exciting to have my interest.

I think if these interests were directly paid to HBD wallet rather than being added to the Savings, I might have just been tempted to use it to buy Hive seeing how ridiculously low one can buy Hive at the moment.

However, it's directly deposited into the same Savings where you originally have your funds. This means that this model might be slightly tailored to tilt people to compound their 20% interest rather than take it out.

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A Time To Own HBD?

I think the reason why it's so is that getting one's funds out of their savings would take three days which automatically translates to the fact that interests aren't supposed to be emergency funds.

Sometimes these 3 days waiting periods might shift one's plans to take advantage of a buying opportunity and this is why it feels like it pays more to just accumulate and compound it. However, for some others, they're happy to just wait till the end of that 30 days window, then withdraw their interests from their saving.

One thing I know is that this dip might just be a blessing in disguise because this is just the opportunity to buy as much Hive as possible. However, it's still possible to save up and keep waiting for the bottom, then pounce to buy when it bottoms. But do we know the actual bottom?

The Peg You've Been Seeking

I don't think we do, we just trust our intuition to buy at a supposed dip especially when we've sold high at one time. One interesting thing to note is that I like the fact that HBD is holding on strongly. I kept tabs on USDT and about 12 hours ago I saw it trading at $0.97 (USDT is like the most trusted stablecoin out there) and slightly off the $1 peg.

This has made me appreciate how strongly HBD has held against some of the best out there. Because we have our issues with stabilizing HBD, this dip has tested the capability of HBD and I must say we haven't done badly.

This is an even bigger incentive to hold it rather than spread the 20% APR interests into assets like SPS, LEO DEC, LVL, POB, or the second layer tokens. Although it depends on whether you're seeking more stability or willing to grow your stake by throwing it into other tokens in the Hive ecosystem.

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Compounding Is Sophistication

However, at this moment the juiciest incentive is buying back hive with the interest or holding HBD and compounding it for more interests. This is the biggest dilemma at the moment.

As for me, most of my Hive stake is in Hive, powered up, so at the moment I won't be looking to convert my HBD so quickly unless we approach 15 to 20 cents (hopefully we won't). This is the part where it gets Irresistible and this is where I'll begin to say "oh we've bottomed"

I don't think I'll convert my HBD interests to anything higher than this range. How some people might want to use this dip as an opportunity to trade, maybe take advantage of that LUNA situation to make some profit. But this isn't me. I like to keep my holdings short and compact, instead of chasing more profits.

Buying Hive Hasn't Been Juicier

However, it's exciting to see that if I withdraw my HBD interest for May, which is over 27 HBD, I could get up to 3x the number of Hive and that should be up to 60 or 70 Hive at the moment (price-wise), now imagine Hive getting back to $1.2 at least.

After I repeat this process for at least 6 months then I'll use some of that Hive again to buy HBD. The sophistication of compounding is unimaginable.

This is all happening in my mind, it might turn out badly and it might turn out to be way better than I planned. However it is, it's exciting to bask in the feeling of stability that HBD brings and that juicy 20% at the moment. What will you do with your interest?

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53 comments
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I hope we don't hit the bottom but if that happens it's going to be about building and buying what I see of value here on hive, which Leo is one of them.

Luna does have profitable future values, but I don't think I'll be buying it no matter how cheap it is, considering how much opportunity is here with hive and it's second layer.

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We're definitely not going to hit our ATL because it doesn't feel like we would. However, I'm only sentimentally speaking. It's a mixed feeling though. Crashing that way below might give the chills.

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The nice thing about the HBD savings is that it is stable. THE HBD in my account has the same value each day, which is soothing during price fluctuations. The 20% compounding makes it even better. I don't spend all day checking on HBD like I do on Hive. Of course, I hate to see my HVE value decline, but the investor in me, just says, buy more. I'm just looking for the bottom so I can load up!

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but the investor in me, just says, buy more. I'm just looking for the bottom so I can load up!

That's because we understand that the price wouldn't stay like that forever hahah. I'm also really happy that HBD is doing well. While we cannot say the same of hive, we're still happy to keep loading up.

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I was on the internal DEX earlier today playing around with figures looking at how much Hive a 100 HBD will give me, I raised the numbers back and forth and was amazed and tempted to initiate HBD withdrawal but stopped since both are important to me.

Like you mentioned 20 cent is definitely irresistible and I won't be surprised if we test that range considering the rate at which this dip is going.

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If HBD wasn't in savings I'm sure many would subconsciously make that move even when they know that they need the both, no one can resist buying or owning more hive with less HBD.

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True, I would have tested with 50 HBD today, and if I enjoy the move I will repeat the process, like opening Chaos Legion packs 🤣

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The lower the price of hive the more systemic risk you're taking as the asset backing it has less liquidity, there's about 14 million in orders holding up this entire thing and the depth is razor-thin

you're taking on car more risk than you realise

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And what's your expert way of mitigating this "risk?"

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You can't, its designed to fail

the only safe method, is to Take your wealth put into the strongest network the worlds has ever seen, in an air-gapped wallet, use a multi-sig to spread your keys around, add a duress password then store those keys with a robust metal seed phrase storage system

Create an X-pub so you can have multiple public addresses ready and keep stacking

But you'll find that out sooner or later

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You are doing wise move.
I am getting Hive with any liquid HBD but my saving will stay where it is if and only if Hive is dirt.
Ain't happening for Hive to go that low.
Keep it icing, this is opportunity time we have now.

How about Leo token?
Hope you have some stash right ?

!BEER

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I am getting Hive with any liquid HBD but my saving will stay where it is if and only if Hive is dirt.

I don't see Hive dropping to the level of dirt either, amazing how some experts around here thinks Hive system will fail but still hanging around milking the system...

As for LEO am sure stacking up!

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Exactly, I don't see Hive getting that low, it's crazy though how they think we might fail. People sell everything they own and silently hoping others sell too so the will not be the only loser.

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If you know what is best for you why not do it and go at it alone rather than throwing silly expertise advice around looking for who to join you on your plans.

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It's how the world is, people don't want fail alone hahaha.

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Well I am one that don't follow the crowds so trying to recruit me to your silly views isn't not going to work for you.
Hive will fail, why not hop onto the one you know is not going to fail stop stop showing your face around here?

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Yeah, I'm powering up more Leo token, before the month runs out, I'll have 7k powered Leo. What I do is to add at least 100 HBD every month to my savings to compounding the one I already have, while buying Hive at the same time.
Thanks for the inspiration, it takes me farther than I think.

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Thanks for sharing this beautiful idea. I never know I can get intrest saving my hbd. Saving hbd right now is not a bad idea but my fear is that we don't know may be the opportunity the market is offer will be available till the next 30 days.

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i was all about taking my hbd and saving it but I'm keeping my new earnings liquid in case I want to buy hive. But my goal is to build my HBD base to 5000.

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My goal too is at least 5000 HBD before the end of the year.

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This will be tough for me to get to. I might reasonable to add another 1,000 HBD

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It is a normal mechanism in all defi based savings to add profits back to pool, 1 to make pool mint more tokens 2 more profits to investors.

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It's amazing to compound and also good to buy Hive. If my HBD savings interest is big, I think I would split it into buying Hive and compound the other half.

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For now that's what I basically do. I think it'll be more easier to make that Choice if we understand the prospects of buying more Hive in let's day 8 months or 10 months down the line.

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Your interest is real juicy. Lol. Hopefully we don’t hit rock bottom though it’s not looking like it. Compounding your interests really does sound sophisticated and I hope it turns out as well as it’s happening in your mind.

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Well I've seen the interest of others and it can be way juicier. But I try to build HBD Savings goals, I like the experimentation that comes with it.

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Seems great, hope I get to understand all these as fast as possible.

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Well it's not too difficult, you just need to put your heart to it and you'll understand it real quick

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Okay, I'll just try my best. Thanks for your understanding.

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The APR on the pHBD/USCD LP seems juicier but I always just like the feeling I get when I claim the 20% in my savings. Hopefully, there will be an adjustment on the 3 days waiting period coz it feels limiting.

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Well yeah, I agree that the APR on pHBD/USCD LP is juicier, but I just felt like this for me is more satisfying. The 3 days waiting period might just be a blessing in disguise.

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My interest is just going to sit in the savings for now. I bought some liquid Hive a few days ago using my liquid Hive and I think I will wait to see what happens first. At least I will time out my purchases so it's a bit more DCA into my average and my HBD compounds.

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If you 10x your HBD holdings would that mean your monthly earnings be around 270 HBD?

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Yeah, but I doubt I can be able to 10x my HBD holdings, that would take a miracle, but you're right.

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