Just recently, back in August 2024 the HBD interest rate was cut from 20% to 15%. The interest rate is determined by the witnesses as a median from the individual top 20 and the majority of them are now signalling 15%.
The 20% interest rate was set back in 2022, and it lasted more than two years. Quite the run!
The withdrawal period from the savings account is three days. A reasonable period. It’s like staking with three days unlocking period.
When the interest on HBD was set for a first time by the witnesses, in March 2021, it started at 3%, then they push it to 10%, 12%, 20% and now back to 15%! You can see what the interest rate is set by the witnesses here https://peakd.com/me/witnesses.
With the latest Hardfork the debt limit for HBD was pushed to 30%, allowing more HBD to be printed before the haircut rule is applied and HBD is devaluated.
Now let’s take a look at the data and see how much HBD has been transferred to savings and who is taking advantage of the HBD interest rate.
We will be looking at the following:
- HBD balance in savings
- HBD savings VS liquid balance
- Daily interest rewarded
- Monthly interest rewarded
- Cumulative interest
- Top accounts that hold HBD in savings
HBD Balance in Savings
Here is the chart for the HBD balance in savings in time.
There has been a strong growth in the amount of HBD in the savings up to the middle of 2023 when it slowed down a bit but continue growing slowly up to June 2024. The peak was in May 2024 with 8.4M HBD in savings.
Since June the amount of HBD is savings dropped and we are now at 7.5M HBD in savings.
When we zoom in 2023 - 2024 we get this:
We can notice that the peak was reached just recently at 8.4M in savings. At the beginning of 2023 there was 5M in savings, while at the end of 2023 there was close to 8M. In 2024 there was a slow growth from the beginning of the year up to May when there was 8.4M, and then a drop in June. This drop most likely happened because of the drop in price of HIVE and users pulling out of HBD and buying/converting to HIVE. A further drop happened in August 2024 when the interest rate happened, but only for a bit from 7.8M to 7.5M where we are now.
For now, we don’t have any significant impact in the amount of HBD in savings from the interest cut. Will see how things evolve in the future.
HBD Interest Rate [%]
Historically the interest rate for HBD has been as follows:
- Mar 2021 - 3%
- Jun 2021 - 7%
- Jul 2021 - 10%
- Dec 2021 - 12%
- Apr 2022 – 20%
- Aug 2025 – 15%
After more than two years we are now at 15%.
HBD Balance in Savings VS Liquid HBD
Here is the long-term chart.
This is a long-term chart, starting back from 2016 for context.
We can see that HBD in saving started to accumulate only after the introduction of interest in 2021. Since then, it has kept growing and we are now at ATH for HBD in savings, and at the same time the liquid HBD is at all time low.
We can see some ups and downs in the liquid HBD supply, while the HBD in savings keeps on growing. At the beginning of 2023 the total supply was at 9.5M HBD, out of which 5M were in savings and 4.5M liquid. Now the total supply is at 10.8M, out of which 7.4M is in savings.
In terms of share of the liquid HBD we have this:
A constant downtrend here with some bumps on the way up to September 2023. Since then, the amount of HBD in savings has been hovering around the 70% mark. A full year around that number. Only around 30% liquid supply.
At the beginning of 2023 this share was around 50%-50%.
Daily Interest Rewarded
How much interest is paid to the HBD in savings? Here is the chart.
At first in 2021 the interest was paid to all the accounts that hold HBD, without the need to be put in savings. Then after the HF in June 2021, HBD interest is paid only for HBD in savings. We can notice the sharp drop at that time.
Since then, the daily interest payouts depends on the amount of HBD in savings and the interest rate for HBD APR. A constant growth up to August 2024 when it reached 4.5k HBD daily, and then it dropped to 3k HBD daily where we are now.
The monthly chart for the HBD interest looks like this:
On a monthly level we have seen a flatting out in the last period and a drop in the last two months, August and September of 2024. The top was with around 135k in May 2024 while September is at 85k HBD interest paid. The monthly interest paid is the bellow the 100k HBD mark, for the first time since January 2023.
On a yearly level things looks like this:
| Year | HBD Interest Paid |
|---|---|
| 2021 | 120,857 |
| 2022 | 584,199 |
| 2023 | 1,332,302 |
| 2024 | 1,352,619 |
Note that 2024 is not over yet, and this is a projected amount.
Overall we can see that there has been a rapid growth up to 2023, while 2024 is projected to end around the same level as 2023 with 1.3M HBD paid in interest on a yearly basis.
Top Accounts that Hold HBD in Savings
Who has the most HBD put in savings? Here is the chart.
The @lazy-panda account is dominant on the chart with 2M HBD in savings. It has added more on its balance in the last period. @newsflash is on the second spot with 267k, followed by @yunnie with 150k.
A total of 8k accounts now have at least $1 HBD in savings.
Live info about the savings data here:
https://www.hbdstats.com/
All the best
@dalz
To be fair, this distribution in holdings of HBD is AMAZING. Its shows that almost everyone on Hive is long Hive and doesn't want to hold HBD even at a 20 or 15% interest rate. That is insanely bullish alone. @vaultec being one of the largest holders of HBD is also a great sign, as it is a testament to how much of a risk averse guy he is, which is what you want to see from a Layer II smart contract system builder.
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Well idk about anyone else but it seems like everything is pretty much the same with a lot less inflation on HBD. I suspect you could go to 10% and nearly see the same thing. Personally I would like to see us around 5%-7% and make small adjustments based on the market conditions etc.
Yea, not sure what will happen at 10% ... maybe 12% will be more barable. Also tweaking it all the time is not a good thing
I believe 12% would be good too, still a great interest rate and way less inflation. Not many places give us 12% on a stable coin
Thanks for confirming this.
It makes sense that we wouldn't see a mass exodus from HBD on a 5% cut because there isn't really a better place to park that value at the moment. 15% is still quite good and even on par with mutual funds without any of the volatility of such a fund due to the stable nature of the asset.
Of course this assessment assumes that the market is decentralized, which of course it isn't because the top account owns more HBD than the next ten on the list combined. So it's really up to Lazy-Panda's whims for now.
Yea lazy-panda has acctualy increased his position .... probably the only from the top 10
Is it Panda backed Dollars? PBD?
Lol ... pandas are rare and expensive though :)
I had no doubt the drop in the price of Hive is a key player in the drop in HBD interest rate and amount in savings. I just hope the horizon gets brighter and Hive's price gets its head out of the pit. The drop in price is also ruinous to the ecosystem and platform in general. Hopefully that will change when the bull run finally comes around. Thanks for this educative pieces of info, it offered me some insight.
Great statistics, congrats and thank you.
I intend to up my $HBD savings stash !LOLZ
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I was just wondering about the effect of decreasing the interest rate for HBD from 20% to 15%. We can see a decrease in HBD in Savings, but not to drastic. I believe that 15% APR (+ compounding) is still at great levels!
I believe that HBD in savings will increase when the price of Hive go up and this is because people will want to take some profit and save up HBD so that they can enjoy the 15% interest.
My speculation is that people removed HBD from savings because of the low Hive price... great time to buy right!!
The best time to buy :D I can't deposit HBD with the conversion rate so desirable! Munching up all kinds of hive lately!
It always happens 😅😅 you have to be prepared for the storm 😅😅 dang I'm a little late on that train but we are getting there! Swapped out HBD for full Hive payouts and I am banking quite good 😅
Thanks for sharing!
I like that we are quite stable now.
HBD saving amount is reduced slightly but 15% interest rate is not less. It still attracts investors.
😊👍🏻👍🏻👍🏻
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