20% is enough to be attractive for anyone looking to earn yield. It's more than you can get just about anywhere else. If people aren't buying it, that's because they aren't that interested in yield (or aren't aware of it at all). Moving it up even higher might move the needle a little but there is a question of diminishing returns vs. cost.
It's a combination. The people who are aware of it aren't interested in investing much more than they already are for yield and many more aren't aware.
When is HBD considered in the circulating supply that shows up on Hiveblocks? Is it when it is claimed in our wallets from staking in savings or as it is earned?
It comes from inflation that is being applied to HBD.
why not 30 % or 40% ?
That is what the consensus on the Witnesses came in at. They could have set it higher (still can) if the all agree.
For now, I believe the idea is to put it at the upper range of the stablecoin ROI market. We have the increase in haircut with the next hard fork which might help also.
I hope the next increase is tied to some time locked vault system. Maybe 1 year for 25% or 30% return.
I didn't phrase it properly. I meant how did the witnesses reach that consensus because some could have said they prefer 19% or 21%. Anyway I understand the main gist of it :)
My guess is because that was what UST was paying through Anchor. I have no hard facts to cite but my view is they looked to match that, which subsequently dropped.
20% is enough to be attractive for anyone looking to earn yield. It's more than you can get just about anywhere else. If people aren't buying it, that's because they aren't that interested in yield (or aren't aware of it at all). Moving it up even higher might move the needle a little but there is a question of diminishing returns vs. cost.
that's what I was curious about, the rationale behind the number. Thanks for the explanation :)
I would say a lot of other things to work on surrounding HBD at the moment rather than raising the APR.
I am sure the latter factors in a great deal. Word has not spread a ton.
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It's a combination. The people who are aware of it aren't interested in investing much more than they already are for yield and many more aren't aware.
Question for you:
When is HBD considered in the circulating supply that shows up on Hiveblocks? Is it when it is claimed in our wallets from staking in savings or as it is earned?
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Interest isn't included until paid out/claimed.
On the other hand, post rewards are included in supply when paid out, before being claimed.
Thank you.
Good point about the rewards.
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It comes from inflation that is being applied to HBD.
That is what the consensus on the Witnesses came in at. They could have set it higher (still can) if the all agree.
For now, I believe the idea is to put it at the upper range of the stablecoin ROI market. We have the increase in haircut with the next hard fork which might help also.
I hope the next increase is tied to some time locked vault system. Maybe 1 year for 25% or 30% return.
Posted Using LeoFinance Beta
I didn't phrase it properly. I meant how did the witnesses reach that consensus because some could have said they prefer 19% or 21%. Anyway I understand the main gist of it :)
My guess is because that was what UST was paying through Anchor. I have no hard facts to cite but my view is they looked to match that, which subsequently dropped.
Posted Using LeoFinance Beta