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RE: HBD APR

in #hbd4 months ago (edited)

HBD APR not being above HIVEs potential max APR is basically been my stance for quite a while now ever since I saw a few other witnesses mention it, Just makes sense to have the Primary currency have the highest returns.

Personally anything between 6-10% is already very appealing compared to FIAT savings accounts which frankly is all we should compare to as the APR in DeFi and the Crypto space is often artificially inflated or just down right a lie.

So It's nice to see the APR come down, it'll probably lead to more HBD to HIVE conversions as some may choose to drop out of HBD to some degree and the low HIVE to $$ price also fuels such conversions.

HBD conversions back and forth have shown the system generally is self regulating, We have tons of HIVE converted when HBD depegs massively outside of the internal market and when prices drop it converts back to HIVE, which can be a bad thing to an extent, increased inflation in an already difficult market and potentially even more sell pressure.

But that's should how things are. We should trust in the system to regulate itself more than giving out APRs that many associate as being a 'scam' or too good to be true.


I'm a hive witness supporting the blockchain.