Rumor has it that some of the Hive’s witnesses are considering making the HBD interest higher with extra 8% APR. The current APR for HBD savings is 12% which is quite nice and considered okay compared to other platforms like NEXO, Celsius or Blockfolio, the APR there should be at 10%. Besides these platforms are centralized but Hive is decentralized. The HBD savings APR has seen a slow increase rate the past months, Hive is quite new, being a 2 years blockchain platform, the HBD savings APR has increased from 3% to 7% to 10% and now 12%. This increase to 20% is something I have been wishing for on most of blog post on HBD savings , but I wasn’t expecting implementation so soon.
The supply of HBD in the market is quite low compared to other stable coins out there. But the beauty of HBD is that it has one of the greatest advantage and utilities compared to other stable coins out there. As usual, it’s an underrated, undiscovered gem waiting to blossom. I fell in love with HBD when it got to 12% APR, I wished it would get to 20% but like I once said, I didn’t expect it to come so soon. When I gave the title of this post *** Are We Actually Ready For 20% APR HBD Savings?*** I was actually speaking for myself, may be I should have personalized it.
Initially I was hopping that before the discussion of making HBD savings APR 20% it would be in the next 2 years or a year, when Hive has gotten a lot of attraction and value. I was hoping that $5 price would be the least price where having to increase the HBD savings APR will become a discussion. Currently, the HBD utility is not active yet, aside preserving and protecting your assets against the market’s utility and locking up to gain 12% APR, there is no other utility attached to the HBD. But utilities are being generated to add to the HBD use case for instance, we saw the news from the Leofinance Twitter account.
When this becomes a reality and we see a massive progress in polycub, both from Hivers and non- hivers, this will further create a demand for HBD, then the possible discussion for more APR % can be put in place. This is not just subjected to only polycub, this extends to any project by Hivers trying to give the HBD more utilities. The Ragnarok project mentioned using the HBD for purchasing assets in the game. When this becomes a reality, this is an extra utility on HBD, creating more demand for HBD.
On the other end, the increase in APR % can be seen as a great PR for Hive and HBD. Who wouldn’t choose Hive as a platform to save their stablecoin and get more APR compared to other platforms. If I was a non hiver and I come across an information saying, all I have to do is save my HBD on a decentralized platform and I get 20% APR, after doing my research, I am pouring all the fiat I got into it because, not only is is risk free, it’s also decentralized and I will get my money back anytime after 3.5 days. This is surely going to attract more users into Hive.
I couldn’t help but worry about what other people’s thoughts might be regarding the increase in APR %. What if people start powering down their Hive power so they can convert their Hive to HBD and earn more APR % since HBD savings APR gives more APR than Hivepower curation rewards that gives 8 - 10% APR. But then, the fact still remains that Hive is volatile and has great utility, if people get into Hive because of HBD and realize the potential of Hive and the use case of its coin, they might drive the value high by demanding it. This way your investment can 10X, 20x or 100X as the case may be. That’s the advantage of utility. Hive still stands to be the number one coin that everyone needs on the blockchain, so it’s unwise to power down all your Hive power for HBD savings. Rather, make money outside the Hive blockchain and invest it on the HBD savings.
Not a financial advise, remember
So yeah, we might actually be ready for 20% APR on HBD Savings.