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RE: Hive Bonds: The Next Step In HBD Evolution

in LeoFinance3 years ago

This is an absolutely fantastic idea. By this logic and design... Why wouldn't you lock up HBD for 30 years since your value isn't necessarily "locked" because you get the HBD30 bond tokens to trade on the market? I could even see the bond tokens trading higher than the HBD tokens due to the guaranteed payout per year on those tokens. This really creates a positive feedback loop as you said. Strengthening the whole Hive economy while generating way more HBD for the market.

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It can trade higher especially as time goes by. For example, if "locking" HBD up for 30 years nets out a 35% rate, what happens if you buy a bond 20 years in? Obviously the HBD is paid out at redemption in 10 years but still pays a 35% annual rate, much higher than buying a new 10 year bond. Hence there would, I surmise, be a premium on the bond for the shorter timeframe until duration.

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Thank you for breaking down what I was saying. This makes perfect sense and creates more incentive to bond your HBD.

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