HBD APR Dropped to 15% but Who Cares?

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I'm sure it's old news to many, but if you're just now aware of this, don't panic. It's really not that big of a deal. By the end of this post, you’ll realize you're just fine, and may even have a different outlook.

What Is HBD?
In a nutshell, HBD is Hive Backed Dollar, a stablecoin designed to be pegged to $1. There are systems in place to allow you to convert to HIVE and back. HBD can be put into "savings" and will accrue interest at a rate based on what the top witnesses decide. It takes only 3 days to remove it from savings.

What Happened
Some of the witnesses decided they felt 20% APR was too much and signaled to drop it to 15% instead. While a 5% drop isn't insignificant, it's also not the end of the world.

Poor Timing
You really don't want to be cutting HBD APR when you're in a crypto bear market. You want to entice people to move from another crypto into HBD and HIVE. Then again, not my circus, not my monkey.

(Created with Bing)

Is 20% APR Really That Good?
The drop made me reevaluate the 500 or so HBD I had in savings. I did the math, and even at 20% APR compounded monthly, I could convert that into HIVE while it's cheap (Currently around $0.18), move that into investments in Hive-Engine tokens, and make far more. And so, I'm converting my HBD to HIVE and moving it into much more lucrative options.

(Created with Bing)

What About Liquidity?
The advantage to HBD is you can quickly convert it to HIVE and back again. In a bull market and HIVE price is over $1, it's not a bad idea to lock in some of those profits by converting to HBD.

With Hive-Engine tokens, you do have to be a bit more careful. Personally, I'm sticking with HE tokens that offer a similar APR or higher AND have a liquidity pool. This way I can take half of my earnings and put them back into the pool to compound my earnings daily, and sell off the other half to take a small profit. Then, I just convert my Swap.Hive to HIVE and I'm all set.

See? It's not all doom and gloom. Sometimes the wake-up calls are a blessing in disguise.


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28 comments
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@bulliontools, the HiQ Smart Bot has recognized your request (1/3) and will start the voting trail.

In addition, @bulliontools gets !LOOL from @hiq.redaktion.

For further questions, check out https://hiq-hive.com or join our Discord. And don't forget to vote HiQs fucking Witness! 😻

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You received an upvote of 88% from Precious the Silver Mermaid!

Please remember to contribute great content to the #SilverGoldStackers tag to create another Precious Gem.

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not my circus, not my monkey

Em ... you're a part owner?

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I am, however, I have no real say in the APR for HBD. I typically convert my earnings to HIVE and invest in HE tokens that pay dividends and grow their value.

!BBH
!PIZZA

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(Edited)

Say what? It did? Oh boy. Which token can you make far more tho?

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There are a few. I'd check the liquidity pool APRs in BeeSwap to find the best ones. Off the top of my head, PIMP, PWR and SIM have good APRs for providing liquidity.

!BBH
!PIZZA

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Oh I've never heard of those before. Will check on it.

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temporary corrections all coins have but if the use case is strong, then long term benefit is clearer

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True. However, there are still more lucrative options for the long term.

!BBH
!PIZZA

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I care. I was hoping they can suck up more value quicker with 20%.

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(Edited)

I care, but not to the same extent as those who are freaking out over it.

!BBH
!PIZZA

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Thank you for your witness vote!
Have a !BEER on me!
To Opt-Out of my witness beer program just comment STOP below

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Thank you for your witness vote!
Have a !BEER on me!
To Opt-Out of my witness beer program just comment STOP below

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I plan on keeping most of my HBD in savings. I moved a little bit out to buy some HIVE while it is low, but 15% interest is still one of the best returns on both HIVE and the real world.

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It's better than most, but it's compounded monthly. Liquidity pool earnings can be compounded daily, so the potential there is far greater.

!BBH
!PIZZA

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I haven't really seen any LP's that are as lucrative or safe quite honestly. I have some that I am betting on, but they could all collapse tomorrow. I don't feel that way with HBD. I don't know.

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(Edited)

PIZZA!

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What kind of HE tokens are you referring to? Not sure if there is one that can be as reliable and "set and forget" as HBD.. Maybe $BRO?
thx in advance

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I wouldn't say any are "set and forget."

There are some, like SIM and PIMP, that have been around for a long time and are healthy and stable.

I'm also in PWR and DRIP as speculative plays.

!BBH
!PIZZA

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SIM has lost like 95% of its value, 3 years ago was 0.00500 Hive and now it's 0.00018, what are you talking about?

How those are netting over a 15% APY , sorry but either I'm missing something or you don't know what you are talking about at all..

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