A couple of weeks back, we asked the community in a Liotes Mission what they suggested for the return on savings for HBD.
As a Hive Witness, we need to signal what interest rate we support. Even if we are not in the top 21, it still matters also for other, better places witnesses to adapt their rate. We listened to what the community suggested and came to the realization that it's not such an easy answer to give.
We signal a rate of 10% APR at the moment with our witness. The general feed-back that we received is that this is more or less ok. Some would prefer to get a higher APR but they are in the minority. Most of the answers were considering the fact that high interest rates on APR is bad for the hive supply, but at the same time lowering the rate too quickly could be bad for the chain as well.
A drop in interest rates could lead to a selloff and a quick increase of hive liquidity through conversions. This would have a negative effect on the price of hive and also HBD. We are a bit between a rock and a hard place. We know that for the well being of hive, these rates should come down but this should be done at a slow pace. For this reason, we decided to leave the interest rate on our witness at 10% for the moment. We plan however to lower it slightly at a later stage.
No mission last week
I didn't manage to generate a Liotes Mission last week and I'm sorry about that. There will be a new mission this week.
The Liotes Ranking
Since we didn't have a mission last week, there were also not much changes within the ranking. You can check out the ranking here: - The Liotes Ranking
The numbers of this week
This week we could burn only 500 tokens mainly because the price of LEN went up lately. The higher the price, the less we can burn.
Liotes
A project run by @ph1102 and @achim03
Yes, I think leaving it at 10% is probably the best decision for the time being.
!ALIVE
!BBH
Thanks for the update, and I think the 10% is fine right now. Hive has been under the debt limit for a while now and that was why I thought it should be the a bit lower.
Lower interest rates being more sustainable, I wonder if there is a significant portion of the user base who would favor interest rates lower than 10%?
I trust you experts to do the correct thing. :)
Thanks for the update.
Leaving the interest rate at 10% APR, I think is the best bet. One needs to play safe, sometimes.
!BBH
Thanks for the update!
Thank you for the news, even if it's late :)
Makes a lot of sense — a sudden rate cut could easily trigger exactly the kind of selloff you're trying to avoid, so a slow, signaled decrease seems like the responsible path. Thanks for being transparent about the reasoning behind the witness vote, and sorry to hear about the missed mission — looking forward to the next one!
My take on this is that there needs to be a clear reason to change the rate. If not, stay the same. But if there is a change, it should be gradual.
!BBH
!PEPE
!WRD
!INDEED
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