HBD now paying out 3% interest

in LeoFinance4 months ago


Effectively immediately, the Hive blockchain will now pay out 3% interest to anyone who holds HBD and has a transaction involving HBD in the last 30 days.

This change is the result of the majority of witnesses voting for 3% interest on HBD. This is the first time we have had an interest rate on Hive since I have joined.

You can view the witness list to see which witnesses are proposing interest rates.

Interest will be paid on both HBD and HBD Savings provided you have sent or received HBD on your account in the last 30 days. If you haven't received any HBD transactions the interest will be paid out when there is a transaction.

Relevant Code

From the code above, you can confirm both HBD and HBD Savings are eligible for interest and interest will be prorated based on the time since your last HBD transaction.

Currently interest is only paid out once every 30 days. This may be changed in a future hard fork.

There are two projects that have been attempting to stabilize the price of HBD to $1.

  • HBD Potato
  • HBD Stabilizer

HBD Potato has been disabled and all the funds in the account have been sent to @null.

HBD Stabilizer is actively running and collects funds from the DHF on an hourly basis. These funds are used to purchase Hive and return the Hive to the DHF. If the price is within a small threshold of the $1 peg, the HBD will immediately be returned to the DHF. If the price is lower than the $1 peg, it will be converted to Hive and then will purchase HBD and return it to the DHF.

Both projects were witness lead projects to help maintain HBD at $1.

HBD value is best when it closely pegs the US dollar, something it has not done well over the last few years. The HBD Stabilizer project aims to correct that with a more intelligent algorithm.

The end goal being discussed is to provide an even more attractive interest rate for HBD after we have had time to observe the affects of this change and the performance of HBD Stabilizer.

At some point, the interest rate on HBD may be competitive with what most users make in curation. This provides a more attractive opportunity for investors without having to play the game with curation, content creation, countering abuse that is required to maintain your relative stake.

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Have I not been paying attention to extensive community-wide discussions debating the pros and cons of this change or did something like that simply not happen?

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I hope this will get a reply soon.

Is it too late to sign up for a new account named @null? lol.

If only. Null gets so much transferred to it.

Our update this week will move the APR rate to the front part of the witness page.
Also we will be changing the interface to show this APR on the wallet page, hopefully in a way that is easy to understand for users.

Good stuff!

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Excellent. It will help users to understand the rate they are getting. Much like any other defi platform :P I am up for it.

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That's good news, thx.

Better! Because even I didn't understand it when I saw it in my wallet.

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i don't really get where is this 3% coming from?

The billion dollar question!

I don't fully understand it Marky. Who will give that 3% and how does it works? Can be seen in the wallet?

I don't understand this, either.
Is this to discourage people from holding and powering up HIVE?

I think it's encouraging us to keep on holding it because you will receive 3%. I'm not sure but that's what I understood.

Who will give that 3% and how does it works?

The blockchain will issue it

Can be seen in the wallet?

Yes, currently on wallet.hive.blog supports it, but it will likely come to @Peakd and other UI's relatively quickly.

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Interesting. Do you know where can I get more information about it? Is not clear how interest is earned and what HBD transaction means.

If I have 100 HBD in my savings on account A and send 0.01 HBD to another account of my, acoount B and then send 0.01 HBD back to account A, will I get 3 HBD after 30 days?

Is a little bit confusing right now.

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If I have 100 HBD in my savings on account A and send 0.01 HBD to another account of my, acoount B and then send 0.01 HBD back to account A, will I get 3 HBD after 30 days?

It is 3% per year, so you would get 3 HBD / 12 (months). The 0.01 HBD would only be needed if there has not been any transactions on the account in the last 30 days. You don't miss out on that interest, it just won't pay out until there has been activity.

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Thanks, is clear now!

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YO Marky. Is this the 1st post on Hive about this or did the community already discuss it somewhere else? If there's any older post, can you link it, please?

It's been discussed for a while off and on, but recent discussions picked up. It has always been a parameter available to witnesses. I don't think there has been many recent discussions on chain that I can link to.

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Ok, I just didn't want to miss on that so I just wanted to ask to be sure. Tnx.

I understand the interest rate and that's really awesome, but I'm curious, I've been staking most HIVE I get because I like to delegate to projects that are pretty awesome across HIVE. Will this interest rate on $HBD de-incentivize this? Sorry if a dumb question.

It is another option, there are tons of "other options" out there like Bitcoin and DeFi. This is just another one.

I believe some may opt to do this instead, I don't think the interest rate is high enough to really make it a must do option right now.

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But in terms of attraction, 3% is already higher than the likes of DAI for example so definitely still attractive to people as you say who dont want to "play" whilst ALSO benefitting the HIVE chain as a whole and helping the peg, I think it really is a win win x2

on autovote, I get around 9% with my powered up hive. HBD at 3% is not really worth it in my opinion unless you plan on holding liquid tokens anyway. I think this may be good for exchanges that hold liquid tokens all the time.

Cool yeah that makes sense, more options are better in the long run. Different people might experience this platform in different ways. Having a variety of crypto-stores with different utility and incentives is a good thing.

Interesting! and with Stabilzer in place and hopefully holding $1 or very close to it is going to make it a little more attractive?

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I don't understand it fully. Would this change increase the rates received from moving HBD to savings + inflation or 3% rates when moving hbd to savings? Does moving Hbd to savings count as a transaction or transactions have to be received from another user or the blockchain to qualify?

EDIT: Found the article written by ats-David. Solved.

Is that per annum?

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Since we get paid in both HP and HBD for post payouts will that count as our transaction or do we have to send HBD out of our wallets once a month?

Wow, great news. I’m going to have to start HODLing my HBD now. I was always converting to Hive Power, but maybe I will do better with HBD.

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Hmmm 3% for HBD vs HP curation and inflation rewards. I know what I would do because HP offers a lot more than 3% xD

Any opportunity that i will earn passively on my tokens on hive, i will take it.

You earn on Hive by:
Posting content(i am lazy and not skillful as a content creator)
Curation(trails are boring, but do it manually-still lazy)
HP Inflation(sit back wait, just staked it)
Delegation(stay sitting)

And now, interest on HBD holdings, ♥️

Glad to see your post. How are you doing today, Mr. Garbage?

Thanks for updating us. I feel like this will be potentiality useful in the next bear market.

Thanks for the update. This is a welcome development for HIVE, especially HBD holders. It's another option for us to earn. :)

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I am wandering are the accounts of exchanges included ? Is the blockchain paying interests to them, if yes what happens if they decide to keep it and not give it to their users ?

I am wandering are the accounts of exchanges included ?

All accounts are included.

if yes what happens if they decide to keep it and not give it to their users ?

I doubt they will pay users, they would need to code logic for this to happen (each exchange individually), and I don't think it's big enough of a concern for it to happen.

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I have my sell order for SBD at 0.0002 BTC and HBD at 0.0001 BTC. Just give me a peak so my orders can fill :)

Together with the Loans, it provides an interesting opportunity for HBD to be used.

Do post rewards count?

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Yes, if HBD is being printed (it is not always).

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Oh! I think that would be good. I know some people don't like leaving their HBD sitting around, they prefer to convert it or swap it to give immediately they receive it.
I just made a little transaction yesterday with my HBD, will that still count?

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Yesterday I was doing some transactions and received interest I haven't before. As I was making my first transactions I didn't know what was going and was it related to that. This information helped me get rid of disinformation why it came, but not where it came from.

Oh nice, maybe i hodl some HBD now, thanks!! Picking up 10k soon, u think that is wise? I do, I like HBD, what if it goes to 10bucks like SBD, or even 20! Just waiting on some unatakes!

u think that is wise?

I can't really say, your guess is as good as mine.

what if it goes to 10bucks like SBD, or even 20!

The HBD Stabilizer project is trying to prevent that. By keeping HBD at around $1 the hope is that upward pressure gets moved to Hive instead.

Thanks, i totally forgot about the stabilizers. Yeah it’s a cointoss alright! Hmmm... Sometimes stable is a win, i guess it all depends on what btc does too!