HBD is supposed to be a stable coin, but because of the low liquidity and the low market cap it has, in the past, been wandering around 20% above or below the supposed $1 peg.
It is supposed to be 1:1 to the USD but it is not. The 12% yearly yield is a good deal, as it is much more than basically any bank I can think of would offer in return for saving dollars.
Because of the price fluctuations it is not always a good idea to buy HBD to put on saving. If you bought it when it was 20% above the 1:1 peg you would take more than 1 year to recover from the impermanent loss.
However right now HBD is being traded slightly below $1, which makes it the time to buy and save. If you plan on getting the yield from saving HBD it is recommended to do it before it goes back to $1 or above (to avoid losses).
I have some HBD saved and will buy more soon. I don't plan on touching it because I want to enjoy the power of compounded interest.
I was very willing to invest and had some money laying around last month, but because HBD was so much above the peg I couldn't do it, I would take an insta-loss. Now that it is finally below $1 I don't have that much to invest, but the time is now, while it is below $1, so I am trying to save some to put it in.
Hopefully it stays below $1 long enough for me, and anyone else who might be interested, to save HBD, because it is unwise to get in above $1
Isn't it 10% yearly yield?
My mistake.
You are correct, it is 10% a year, not 12%
10% plus the additional gain from being below $1. You're not wrong. Once it returns to $1, you'll have locked in additional gains. That's what I thought you meant with 12%
That is a valid insight and it is true!
Your explanation is valid
when i try buy HBD in hive engine 1 HBD is 2 usd, that is very big price
!LUV
<><
@igormuba, you've been given LUV from @bokica80.
Check the LUV in your H-E wallet. (4/10)
Thanks for information about HBD. I'm thinking about your proposal.
HBD is more stable than it was in the past but I understand where you come from. It is a stable coin that is struggling to stay stable