HBD Savings And Interests Analysis

in #proofofbrain2 months ago (edited)

The Hive blockchain is paying interests again for HBDs you hold, since witnesses raised the interest rate in March 2021. This interest was paid whether your HBDs were fully liquid or in your savings. A situation that particularly benefited the exchanges which received interest thanks to HBD deposited by their customers.

A major change with the Hardfork 25 Equilibrium

As of June 30, when hardfork 25 was activated, the blockchain stopped paying interest for holding liquid HBD and switched to interest payments only for HBDs stored in savings.

Quickly after that, the witnesses raised the interest rate which is now 10%.

For your information, the interest rate is evaluated by the blockchain on each block production round and is the median value of the rates proposed by the top 20 witnesses + 1 backup witness (you can see these values on my witnesses page).

So even if you see values ranging from 5% to 12%, the value most suggested (by 11 of the top 20 witnesses in each round) is currently 10%. So much for the technical details.

As it has been more than a month since the changes took place, we finally have the necessary hindsight to analyze the changes that this has induced.

Funds moved to savings

The first direct effect of the announcement of that change coming with the HF25 (vertical red bar in the chart) is that many users have decided to move their HBD towards their savings in order to benefit from this generous interest rate.

We went from a stable 8,949 accounts storing HBD in their savings at the start of June to a raising 10,045 accounts on August 2.

At the same time, HBD capitalization stored in savings exploded from 59,713.583 HBD to 859,389.052 HBD! It is clear that some have clearly understood their advantage in doing so.

Intest paid

What this graph tells us is that the number of accounts earning interest has dropped sharply from around 250 per day to now vary between 12 and 38 accounts.

As for the amount of interest paid, the change is difficult to observe as the amounts paid daily are currently small. Let's see this with a little more perspective:

Here we can see the big change, moving from 36,883 HBD interests paid to 7398 accounts in June against 1,696 HBD to 687 accounts in July.

All the interests that were previously paid to the exchanges (and the DHF) holding liquid HBD are now spared. That's approximately 35k HBD per month.

Conclusion

We will see over the next few months whether this opportunity will be seized by more users and whether the numbers presented here will grow.

What is certain is that the combined factors of an attractive interest rate and the efforts of developers and witnesses for HBD to better hold the peg are starting to take effect.

I will continue to monitor it and keep you informed, so stay tuned.


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Hmmm. So I guess I should finally use the savings feature here.

Few Questions :

  • Is the interest paid a monthly interest of 10% or annual, but paid monthly ?
  • Do we need to stake the interest again ? or its compounded automatically in savings ?
  • If compounded, then does the calculation takes care of using the compounded amount for the next interest ?

Any post that has all the details ?

Is the interest paid a monthly interest of 10% or annual, but paid monthly ?

The (current) 10% rate is annual but paid every 30 days, so your savings will increase by (savings_hbd_balance * APR) /12 every 30 days.
Be aware that you have to "manually" claim your interests by having your savings balance changed.

Do we need to stake the interest again ? or its compounded automatically in savings ?

They automatically go to your savings

if compounded, then does the calculation takes care of using the compounded amount for the next interest ?

Yes, they do.

Should be a safe heaven for investment then.

1M HBD in savings soon!

And 2M later... 🤑

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Posted via proofofbrain.io

Where can we view our interest payments? Should they show in the hive blog wallet?

I've moved all my HBD to savings but I'm wondering if it's too small an amount to show up as interest.

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Interest payment occurs when you make a change to your savings balance at least 30 days after your last interest payment.

Thanks for the info. It's quite a long wait then. 😁

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Yes, they should appear in your wallet. If you use Peakd, you can filter it to display Rewards / Interest only.

If you use Peakd, you can filter it to display Rewards / Interest only.

Thanks. That's handy to know! 😊

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This post is very interesting! thank you for explaining a little more about the HF25. I too have put HBDs in the "savings" section ... I had never done that before.


Posted via proofofbrain.io

I had never done that before.

As with everything, the first time is often a bit scary ... but then you can't do without it.

I would like to know when the interests of the HBD in savings are paid into the account.

They are automatically paid after 30 days when your savings balance change.
TIP: You can trigger it by transferring 0.001 HBD to your savings.

Thank you for the information.

Or withdraw 0.001 from savings if you don't have any more HBD to transfer in.


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I have a reason to use savings now. There was never one before.
At 10% I can use it to hedge against the volatility of the hive price and buy hbd when we are up to store at a profit until the price drops again and can buy back more.

Win win.

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Interesting feature. 10% interest on a "stable" coin is not bad.

I just moved some hbd to savings account

Interesting information, thanks for sharing, I will be attentive, greetings.

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Thank you for this analysis and I am very interested to see the results of the change. I am accumulating More Hive dollars.

Never considered earning HBD but now I may move to a 50% 50% Hive and HBD

Could be a good move 👍

starting now

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I tried last night but don't know why it wasnt working to log and vote. Will try again later on

I have really learnt a lot from this post.