RE: Some Thoughts On Hive Backed Dollar (HBD)

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That is true compared to traditional yields. However, we know that compared to what is taking place in cryptocurrency, the 10% on HBD is low. Thus, will people flock to 10% or even 15%? Hard to tell.

So far, it does not appear that a lot of people rushed out to by HBD to stick into savings. I havent seen any posts but I wonder how much of that 28 million excluding the DAO is really in savings.

Maybe @dalz will give us an update.

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True, but a lot of those high percentages are in DeFi and I think we all know that DeFi (at least right now) has its own set of risks. If people are looking for something relatively stable, that 10% isn't so bad. Heck, my long term traditional investments don't always make that annually. Maybe we need to use the CUB kingdoms as a measure since. So somewhere between 10% and 80%? :)

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Certainly there are risk associated with DeFi. The key to return is growth. We see little growth in the traditional economy which makes the investment centers very low.

With DeFi, moving passed the insane stuff, we see growth rates that can sustain those returns for the foreseeable future. Hence, 10% is a very low number in my opinion, especially on Hive.

I foresee more than 10% growth annually using a number of different metrics.

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(Edited)

I wonder how much of that 28 million excluding the DAO is really in savings.

Does this graph answer your question?

image.png

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Do you have a version of this graph that shows the situation before the recent HBD spike? I think that would more relevant for assessing how people use Savings feature.
If the temporary #1 use case for HBD is "Korean cryptoindex fund asset" and #2 is "get ready in case peg breaks to the bottom", the green section of the graph is hugely inflated compared to the yellow part.

I am also quite sceptical of a 3-day lock period being a serious liquidity risk. It is quite different from the HP lock period that our minds had to accept as standard.

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