The focus on our Hive Backed Dollar stablecoin is particularly high these hours as witnesses are changing HBD's annual interest rate, up to 12% yesterday, and is now 15%. The goal is to set the interest at 20% and this would make HBD the most profitable financial option within DeFi, linked to a stablecoin.
In reality, the annual return will be a little higher as each month the user will be able to withdraw 1/12 of his interest and decide to reinvest it. In fact, if I invest 1000 HBD for 12 months and continue to reinvest the rewards (compounding) I will have about this situation:
As you can well see, the effective annual compound interest will be 22%: from an initial investment of 1000 HBD, assuming the monthly compounding of the rewards (at the moment it is possible to collect them every 30 days) at the end of the calendar year we would actually have 1219.34 HBD.
A suggestion for our devs is the introduction of the autocompounding option of the rewards at the end of the 30 days useful for the collection, thus avoiding having to access the platform to make the claim and then move the rewards in the Savings. Many investors are lazy and do not want to carry out simple but necessary manual operations.
I ask @blocktrades if this is a simple change
Well, that projects Hive as the most profitable ecosystem with its stablecoins, currently the Terra blockchain is offering 20% returns with UST (actually 19.48% at the moment).
We also need to have much more liquidity than the current 22 million HBD, the most popular stablecoins have billions of HBD coins printed and this also ensures a solid peg at 1 dollar. Although HBD is much more stable in the last year than in the past, it is necessary to be closer and closer to the 0.99-1.01 range, thus avoiding excessive losses or gains due to manipulators. Furthermore, the focus on HBD will also have a direct effect on the value of HIVE, potentially reducing its supply.
What will be needed in my opinion, is to launch a marketing campaign similar to what the Leofinance team did for PolyCUB: hell, we may also have the highest returns in the crypto sector, but you need to inform the investors out there of the great potential of HBD! The @leofinance team itself is about to launch a pool on PolyCUB HBD-USDC and promises to be a revolution in the amount of HBD capital generated. In addition, non-HIVE investors will be able to easily swap USDC-> HBD and earn over 20% per annum on Hive.
Dreams? No, it's the fucking reality!
This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
Posted Using LeoFinance Beta
