I've been trying to take advantage of the spikes myself. Pretty interesting seeing the pattern, every couple days at midnight utc it spikes. There is a nice trend line building.
Yield is a lagging indicator by definition. APR itself is YEARLY, as in the number doesn't materialize until a year from now. As number goes up we should be considering lowering the yield even further during the good times so that we have runway to jack it up during the bear when everyone needs a win. Buy low sell high.
That make sense in the lowering the APR as the Hive price rises. I think it could be a thing coded to the core rather than an option for the witnesses to choose so as Hive hits varying price metrics the APR would automatically change. We have many years now of data to work off of.
Good point I've been thinking about an algorithm to guide this metric for a while but it would be difficult to come up with a good solution that everyone would be on board with.
It would just have to be based off the historical data really. We know what the range has been and then extrapolate that out to extremes to cover moons or crashes. If it was varied by algorithm instead of whimsy it would create a bit more stability from an outside perspective and for those of us who use the savings.
yeah it would have to be based on very long averages... potentially even four years long to account for an entire cycle. we'd need to figure out standard deviations and adjust based on the volatility. Unfortunately I only took stats 101 in college and that's it :D
But this feels like a potential. The APR is low hanging fruit compared to the other issues the chain faces and it there is no reason to leave it in the witness's hands when we have the data available. Maybe @arcange has the skills to pull the data from the chain? But then there is convincing people it should be coded in.... Hmmm...
pretty tough sell to go to the witnesses and say "hey let's take your power away you're bad at this" lol
would make a lot more sense to create the algorithm first and see if we can get witnesses to adopt it one by one before actually hardforking it into layer zero
might even be better to leave it off the base layer as a suggestion to the witnesses so that if there's a problem it can be fixed manually
It would have to go thru the sand box for sure. Thankfully there has been better use of testing as time has gone on. I'd just REALLY love to see this be a standardized formula so we have a constant. And I have zero coding ability so this all comes down to convincing others to do the work... DAMN IT JIM!