It does feel like the 20% will not be able to continue on forever, even if the witnesses take it back to 10% or 15%, that is still really good.
You are viewing a single comment's thread from:
It does feel like the 20% will not be able to continue on forever, even if the witnesses take it back to 10% or 15%, that is still really good.
It can go forever if Hive’s price keeps going up forever. Sustainability question mainly relies on Hive’s value. That’s why we call HBD Hive Backed Dollars.
I would say interest rate should be adjusted based on haircut rule. If haircut rule is triggered, pause interests or lower APR. If haircut rule is not triggered continue with 20% APR.
He's not wrong but might miss the point that APR payments breaking beyond the Haircut will still be paid but in liquid Hive.
@daveks Therefore in can be "payed" forever and I'd love to see the dynamics that unfold hitting a 30% haircut. Could be bullish as hell, and could be an immediate downspiral of the Hive value vs Sats.