HIVE Dollar Interest Distributions Begin on the Hive Blockchain

in LeoFinance4 months ago (edited)

hbd_yields  Copy.png

HIVE Dollars have officially begun accruing interest on the Hive blockchain.


The first distributions of HIVE Dollar (HBD) interest have occurred and will continue to pay out at a current rate of 3% APY, or approximately 0.25% per month.

Hive validators recently updated node parameters to include interest rates on HBD held in all Hive wallets. This is the first phase of a decentralized effort to reward HBD holders for the associated risks of investing in Hive’s native stablecoin and marks the first time in Hive’s year-long history that interest rates have been set above zero. This collaborative effort between Hive's validators potentially kickstarts additional decentralized finance (DeFi) initiatives in the Hive ecosystem.

HBD interest rates may change in the future based on market performance and other blockchain-related economic and financial targets.

You can find the current HBD interest rate on Hiveblocks.com under “Hbd interest rate” on the “Properties” side-panel. Interest rates are expressed in whole-number values (300 = 3%).


How to claim HBD interest


HBD interest is automatically distributed, but in order to collect the interest distributions, users must perform one HBD-related action on the Hive blockchain. These actions include claiming post rewards in which HBD is earned or transferring HBD to/from savings or to another wallet.

Currently, interest can only be collected once every 30 days. If you have performed a recent HBD action, then you will not receive interest until 30 days have passed since that last action.

You can find your last HBD payment information on the left column of your account page on Hiveblocks.com under the "Hbd seconds last update" and "Hbd last interest payment" sections.


About HIVE Dollars


HIVE Dollars are a native stablecoin on the Hive blockchain. The coin is soft-pegged to the U.S. Dollar price by feeding HIVE token prices into the network via Hive validator nodes. These Hive validators act as price oracles that use HIVE prices as a measure for HBD creation and distribution.

HIVE Dollars are valued by the blockchain in terms of how many HIVE can be received through a mechanic called a “conversion.” One HBD can be converted into one Dollar’s-worth of HIVE, based on the median price of HIVE that’s reported by Hive validators over a rolling 3.5-day period. Once the conversion is completed and the new HIVE tokens have been created, the HBD is destroyed. This conversion function helps stabilize the soft peg by offering a Dollar-value exchange of HBD for the blockchain’s staking token – HIVE – and by reducing the supply of HBD.

HIVE Dollars are created by the blockchain and distributed as rewards through content creation and from the Decentralized Hive Fund (DHF) – a dedicated, automated fund from which stakeholders can award HBD funding to users based on proposals for development, marketing, or other initiatives. The token can also be traded on Hive’s internal decentralized exchange, as well as on select custodial exchanges such as Bittrex and Upbit.


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Are you required to put it across into your savings before you can get interest? Or is it just holding HBD in the wallet?

But this is a big thing if you are wanting to hold onto the HBD as you at least have incentive in the form of making a little bonus profit.

The interest is for all HBD right now. non-savings + savings.

Glad people even answer...

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Noice :) How can we view the current HBD interest rate?

You can find the current HBD interest rate on Hiveblocks.com under “Hbd interest rate” on the “Properties” side-panel. Interest rates are expressed in whole-number values (300 = 3%).

^ There. Link is in the post above.

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I put in a suggestion for peakd to add a display of the current interest rate here:

Also making an issue for condenser to do the same.
https://gitlab.syncad.com/hive/condenser/-/issues/124

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But it doesn't have to be only in the savings correct? It can be in the normal HBD wallet right?

It is HBD & Savings

I just put up a post that describes it in detail, but I can see what you mean with the screen shot. I will update it to show both.

I guess we need a place to put that 3% apr and a short statement about the conditions for when and how it's delivered. Now how to do all this without confusing people. haha

Maybe just say "3% APR for HBD"
Then have an info link that takes them to whatever great post that really gives all the details in a good way. It would be nice to have a bullet point post that starts pretty general and then has a few more detailed examples i guess.
I would write it but this is all pretty new to me so i'm not sure on the mechanism yet.

Already discussed with @asgarth. If either need more info just let me know.

Do you have a link to sign up for a Hive keychain, what the process involved is and will that secure the wallet also or just the hive engine tokens because one will still have the same keys from steemit.

You can find Hive Keychain on the Google Chrome Store (works for Brave as well). I don't use Firefox but I believe it is there as well.

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Hive keychain in the Google Chrome store works in not only Chrome and Brave but also Opera.

any talk of making the Savings slightly higher?

or just eliminate savings?

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I don't think Savings is going anywhere and there has been talk about making the interest rate only on savings, but would require a hard fork and not sure there has been consensus on it.

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If the first distribution of interest rates have occurred does it mean it has started (accruing) 30 days ago?

Also, does it distribute daily? (Even if you can claim only once per month)

"If the first distribution of interest rates have occurred does it mean it has started (accruing) 30 days ago?"

As far as I know, it should start accruing when the interest rate began at the new percentage. But don't quote me on that.

"Also, does it distribute daily?"

Again, as far as I know, it distributes monthly. But even if it distributed daily, it wouldn't make a difference because the balance wouldn't be adjusted, so there's no compounding taking place.

[EDIT] - To clarify...

The interest doesn't "distribute" daily or monthly. It just accumulates continuously and can be effectively claimed no more than once every 30 days. So the only compounding that can take place is monthly.

Yes... I should have thought more about the word "distribution" even when I tried to explain what it meant in my words.

But thanks for your extra detail. Let's wait and see more (don't have the patience now to go look to the script). Being monthly accrual will be a start for this to keep going again... Daily would be more interesting, but hey hey, we have to start somewhere.

This is going to complicate some finances... for some countries. I just wanna test it, but to be honest I don't wish to "use" it... I have too many other places where I would prefer to have the crypto in, but some others might wish to use it as an investment without worries.

This will also put back some pressure on external markets desiring to hold the token.

Eager to see how this will work out again.

If you buy more HBD and move it to your wallet, does that reset the 30 day timer and you loose the interest for what you were holding in HBD before that?

To my understanding, you claim the first collected interest by an HBD transaction like a transfer. Then you can't collect the rewards for the next 30 days no matter how many transactions you do.

That 30 days time is a timer from the claiming operation itself. Like a cooldown.

so... always accruing...?

Yes, I think it's daily. I will update this comment once got confirmation from others.

EDIT: It seems the interest is calculated per second.

No, you don't lose anything, nor gain anything, by moving HBD in or out of your wallet. The correct interest accrues every block based on the balance that is there. It is only credited at most every 30 days though, but still tracked internally.

I don't trust this guy ... he wears Adidas like some Slav squatting on the street. He got me into some shitcoin and I got scammed. They're stealing my monies on the daily and I can't get them to stahp! This dude says it's all part of the code ... yeah, scamcode!

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Dang it! I just moved my HBD over to buy / create more art on @nftshowroom I really have the worst timing.

Very exciting news!

Are interest values displayed somewhere so that we can see what we earned and when?

I think the Peakd team is going to work on adding some info to the wallet page to help users follow the interest rates and earnings.

[EDIT] - It's already updated.

Interesting. I see the note about interest rates on the HBD section, but if there was any interest paid I don't see that in my wallet log at all. I haven't seen any notification on the various accounts I've checked either (through peakd), but maybe I just need to be patient haha.

Dear @ats-david

This sounds like good news.
3% APY looks good, but do you think it will be enough to sufficiently stimulate the creation of a DeFi market in Hive? The projects should not finance around the HIVE in achieving that the HBD?
Just curious.

Yours, Piotr.