I only want HBD savings to go up, never down.
This is a good strategy too, but remember that the APR on HBD is dictated by the witnesses and can change if it gets too imbalanced.
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I only want HBD savings to go up, never down.
This is a good strategy too, but remember that the APR on HBD is dictated by the witnesses and can change if it gets too imbalanced.
Yes, I recall at least once when Hive stopped paying HBD rewards, probably when the price was around $0.12 or so. I vaguely remember a blog post discussing how interest rates aren't affected by the haircut rule (currently coded at 30%), only rewards issuance. But if HIVE is dumping again, I'd have to buy more.
There is certainly the risk of the witnesses lowering the interest rate. We don't know how savers would react as prior to having any interest we had none. Going down from 20% to 15% was disappointing, but it at least keeps up with the unofficial speculated inflation rate of about 7%. Would poor interest/no interest cause people convert HBD to HIVE? 🤷 We can only guess.
For me, even if it paid 0% interest, HBD Savings would serve me as a simple heuristic for locking in gains. If HIVE underperforms my HBD Savings, I'll buy more. If HIVE outperforms, I'll scrape off the excess into HBD Savings to maintain the 50/50 ratio.
I still have a ways to go to balance my HIVE/HBD for any useful conclusions.
It's a modified version of https://ecency.com/hive-167922/@travelwritemoney/core-number-compounding-with-hive