Hive Backed Dollar (HBD) is a native stablecoin on the Hive blockchain, built to hold the value of $1 in the most decentralized ways. We can generate returns by putting our HBD into a Savings Account on Hive. By putting our HBD into Savings, it is locked in with an unlock period of only 3 days. Once we unlock it, our HBD will be returned to our Wallet after 3 days. Meanwhile, the interest rate is voted by the witnesses and is variable.
I used to send my HBD to savings for security purposes and it was good for me to have it locked for security, but I don't remember if I was making any profit from it at the time. After the interest rate became 20% APR, I started sending more HBD to Savings, because 20% is a really big rate for a stable coin and for me it was the safest way to make a good profit. When I went to claim my earnings today, I saw that the interest rate had dropped to 15%.
I had about 600 HBD in Savings and when I claimed it after 30 days I got 7.578 HBD reward. When I roughly calculate it seems like the interest rate dropped to 15% almost 30 days ago, to be honest, I'm not good at calculating interest rates, but I noticed today that it had dropped to 15%. I currently have 607.8 HBD in Savings.
Of course, I was sad to see the interest rate drop, but to be honest, 20% APR was really high for a stablecoin. Also, 15% APR is pretty high in my opinion. However, I am not sure whether it would be more profitable for me to keep my HBD in Savings or convert it to HIVE going forward. I think HIVE is currently being sold for a pretty cheap price so I think buying HIVE with my HBD might be more profitable in the future. There are also accounts that give rewards close to 15% APR to HIVE delegations, and even more, so delegating my HIVE to them can give me a similar profit or even more. I will think about this in detail and decide in the coming days, what are your thoughts on this?
I am very optimistic about HIVE and I think I am very lucky to be a part of the Hive community. I hope I can stay here for the rest of my life. Also, the fact that transactions on the Hive blockchain are free and fast is a really big advantage for all of us.
Thank you for reading
@rtonline
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