I don't have HBD staked, and I understand that there are risks involved in keeping rate at 15% if we have Hive price go even lower. But 6% doesn't make any sense. Right now in United States I can easily earn 4.5 to 6% with zero to almost no risk in traditional instruments like money market, CDs or Bonds. So why would anyone jump through hoops and pay the costs to bring USD into Hive blockchain stable coin to earn the same six percent?
Even with Revolut I get around 4% on USD which is paid daily and can be withdrawn at any moment. Then there's brokerages which pay around 4% - 5% on uninvested cash. Not to forget that places like Coinbase are a safer bet at similar yields. You're right that it would just make HBD and thus Hive a bit less attractive.
Though I doubt the yield here has made a big difference in bringing new people in to farm that yield. It really would just be people already on Hive that decide to cash it out and send that money elsewhere where the yield is similar and risk significantly reduced.
Totally agree… dropping to 6% makes HBD way less attractive.
Also, It can't compete to DeFi offering more than 10% (stablecoins) and with some equally risky assets offering 40-50% :(
I did way better putting the HBD I earned into bitcoin past 8 years and on average earned way better % anyway! On average.
don’t let anyone tell you there’s no risk in holding HBD long term, I like HBD but it is a artificial stabilizer keeping it pegged and that sells hive to do it. If Hive goes down % it has last 2 months , in the next year we’ll be at a nickel and it will possible cause issues with the peg. I’m not saying it’s certain but it is not risk free! People tend to assume whatever was case last couple years will continue. That’s just silly thinking! Again I’m a fan of HBD as a reward so we have diversification in our rewards but past that as some accounts hold 6 figures it’s ultra risky!
!LADY !PIZZA