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RE: The HBD Balance In Savings Keeps On Growing | More Than One Million Paid In Interest | A Look At The Data In HBD Savings

in LeoFinance2 years ago

At the moment, with the current supply of HBD, it's totally fine with 20% APR, feasible.

But my question is, let's say 5/6 years down the line, if the HBD supply becomes 100 million or more, don't you think 20% APR will be too much inflationary, considering the fact that the debt limit is now capped at 30%?

Anyway, as always quite informative and insightful stats. Thank you for that.

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HBD can be a max of 30% supply of hive market cap. For hypotetucal scenario lets say all the 30% is in savings yielding 20%. That is a max of additional 6% inflation on top of the exsiting one.

The haircut rule is what protects hive and hbd, not low apr for hbd. If we approach the debt limit, I expect the amount of hbd in the savings to drop no matter what is the apr.