Question:
If you get 20% APR for a 3 day lock up on Hive today, what do you get for the following lock up periods?:
- 6 months
- 1 year
- 2 years
- 5 years
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Question:
If you get 20% APR for a 3 day lock up on Hive today, what do you get for the following lock up periods?:
You get nothing because longer lockup periods don't have value.
Longer timelocks have negative EV (estimated value).
You're begging the question by outright assuming longer timelocks good right at the start.
They help nothing and choke liquidity even more.
They punish users and will result in less demand for HBD.
It's taken me a long time and a lot of theory-crafting to come to this conclusion.
But hey I'm more than willing to be proven right if this is the chosen path.
The on-chain data will be incontrovertible if I'm correct.
APR on HBD should not even exist.
We should be allocating all that money to yield on a HIVE/HBD AMM farm to create actual liquidity instead of purposefully sucking liquidity out of the economy and calling it a good thing. This would create exponential liquidity and make Hive itself more stable instead of less stable (because the price is pegged by dollar denominated assets and only exponential dollars can move it).
Unfortunately I don't talk about this much because Blocktrades doesn't like it and says it's too risky. This is above my paygrade so I don't argue with him, but I also find it extremely suspect because there are potential conflicts of interest in play (like no more @hive.fund money for the stabilizer). It's hard to tell when politics leads to gatekeeping and self-preservation on Hive.
I’ll address at CTTPodcast in 4hrs. Welcome to come on and discuss.
I think your approach unnecessarily puts huge risk on layer one and community members when the same risk can be moved to willing participants on a layer two, where those taking on the risk can make way more than 20% per year.
Creating ‘liquidity’ by printing HBD is incredibly risky. Normally you create liquidity by staking pristine collateral assets and expanding money supply and liquidity with that, not with money printing.
HBD being created by inflation or APR is debt. HBD being created by people using Hive and it’s internal conversion mechanism to create HBD is safer, is not debt, it’s pre backed HBD with a pre pump in the hive price to move the haircut level further away. The two HBD creation methods are not the same and should not be looked at the same. One is debt and easy money, the other Pre backed and is hard to get people to do. You seem to be a proponent of the former to create HBD liquidity, I am a proponent of the latter to create and expand HBD.
Also, I’d stake 100k in escrow with you, even though I don’t know u. I trust u that much based on ur account size and what u do on chain, however if the haircut rule comes in and ur HBD is force devalued, I don’t trust u to hold ur HBD and ride through it next to me for a single second. All of ur writing and rallying of opinion against conservative, sound HBD economics shows that. Therefore, I say, if you want high yield, you and others like you need to be, as a minimum voluntarily clicking the “lock me in, here is proof I’m in this for the long run” button, so u can’t sell if the debts are called in.
If ur pushing this narrative, the least classy move you could make would be to ask to have ur ass hard locked in, no matter what happens for the next 2,3,5 years. At the moment, no lock up time and taking 20% from the community smells a little classless. Don’t forget u lock in, u have a pristine liquid asset that can be used as collateral or traded to bring in liquidity via the free market. If u want liquidity you can go find ppl with billions tomorrow and have them use the internal conversion to Pre back their HBD without creating a single APR debt based inflation in the process. But please don’t ask me to go into debt for your HBD liquidity dreams (which is what you are currently doing).
Perhaps this is worth more discussion.
You seem to have misrepresented my position a bit.
I have 0 HBD in the savings accounts.
I am not the one asking for or begging for free money.
Framing me as the greedy yield farmer is not appropriate.
I'm making all these arguments under the assumption that it creates the most value for Hive.
For everyone.
I'll try to make it this week.
I have an alarm on my phone set to 3 PM on Saturdays but that's been too early and then I miss it.
I see. I also have zero HBD. Hive price is capable of a 40% move in one day. Why hold HBD at any yeild level.
You create HBD and liquidity by backing it with hive that has been purchased off the open market. Not via increasing the APR, which is a debt.
Setting the APR is a now problem.
You've presented me with a tomorrow problem in response.
That alone is enough to invalidate the argument.
We aren't talking about tomorrow we are talking about now.
Tomorrow we can talk about tomorrow.
Then it will be now.
It’s really a today problem and it needs discussing and planning by sound, stable actors who are able to rationally plan and consider what could be in the near future in order to decide where resources should be allocated in the now.