Hello SPIers, today I would like to gather some feedback on an idea. I have spotted a gap in the HBD market that we could create a simple solution for. Whether it would be used at great volume would be another thing hence the request for your feedback.
When it comes to innovation on HIVE, 99% of the effort is focused on HIVE itself and HBD remains very underdeveloped in comparison. This is understandable when hive-engine tokens are only traded for with HIVE and it makes it hard for operators to create HBD-based projects. Hard does not mean impossible and I think SPinvest can add value to the HBD eco-system by giving it an extra use case for the whole HIVE community.
Im not going to make this a long post and go into deep details but the idea is.
Hive Backed Dollar Bond - HBDB
(Not the actual name but something like this)
Currently, people who hold and save HBD earn a 20% interest rate per year. This interest payment is paid out each month and is auto-compounded into your existing HBD balance. For those looking to save and increase their HBD balance, this is great but I think there is a gap in the market for people who like to spend their HBD interest each month or part of it. Some people might use their HBD interest as an income or to fund DCAing into HIVE, HE tokens are other cryptos.
The solution
Offer HBD token holders the option to wrap their HBD into HBDB to earn a weekly liquid HBD interest payment with no risk to their HBD balance.
HBD = Receive a monthly locked interest reward
HBDB = Receive a weekly liquid interest reward
- Buying in
Investors would simply send any amount of HBD to the @hbdb account and within seconds receive their HDBD tokens in their HE wallet. 1 HBD converts to 1 HBDB at buy-in with no fee.
- Getting paid
Investors hold the HBDB in their HE wallets and receive a weekly liquid HBD payment to their HIVE wallet.
This payment would be equal to 90% of the current HBD saving APY. Using today's HBD savings APY of 20%, HDBD would pay a liquid HBD payment equal to 18% APY. Thats the catch and thats where SPI makes a few HBDs.
- Cashing out
For the first 12-18 months, cashouts would be done manually. Token holders would send their HBDB back to the @hdbd account and wait 3 days. This is simply because it takes 3 days to withdraw HBD from a savings account. HBD will be sent back at a ratio of 1 HBDB to 1 HBD to whatever account returned the HBDB.
After 18 months, the project should have earned some HBD that can used as a kitty. This would let us introduce automated instant cashouts and make HBDB more liquid than saving HDB itself, 3 days more liquid and this would become another great USP for HBDB. 1 HBDB converts to 1 HBD at cash out with no fee.
End Goal
We aim to capture 0.5% of the total HBD in circulation, currently 27 million. We do this by using the 10% SPI taken as an operational fee to provide liquidity and offer instant buy-ins and cash-outs for HBDB. The end goal is to offer a way for the whole HIVE ecosystem to earn a yield from wrapped version of HBD that is not locked to any withdrawing time period and is fully liquid.
Feedback Please
- What do you think?
- Is there a market for people who would prefer to receive a liquid HBD interest payment over a locked interest payment?
- Do you have any use/need for liquid HBD each week?
- Does the starting auto buying-in and manual cashing-out process look ok?
- What would you do differently? what would you, remove are change?
- Would you buy any? If yes, how would you allocate your HBD between saving HBD in your HIVE wallet for growth and wrapping it into HBDB to earn a liquid HBD payment?
Thank you for taking the time to check out the post, i look forward to the feedback and seeing what people think. Please be honest and dont just say great idea if you would not use it.
| Token Name | Main Account | Link to hive-engine |
|---|---|---|
| SPI token | @spinvest | SPI |
| LBI token | @lbi-token | LBI |
| Top XV token | @spinvest | XV |
| Eddie Earners | @eddie-earner | EDS |
| EDS miners | @eddie-earner | EDSM |
| EDS mini miners | @eddie-earner | EDSMM |
| DAB | @dailydab | DAB |
| DBOND | @dailydab | DBOND |
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If there would be enough stupid people there would be a market for this!
Why give up 2% yield if I simply can withdraw the interest by waiting just 3 days?
There are plenty of stupid people.
I've not market-researched it but I'd assume there would be a portion of people that withdraw the interest they earn each month. This fee might be worth it to get it paid as liquid HBD weekly or even daily.
You're not a customer, to be honest, the feedback so far is not great but thats why i put out posts like this so i can get a feel. Thank you for your feedback :)
I don't think it's as much stupid as people having different needs.
Sure, some are not in need of a best possible return for their invested money. They would then go for 18% instead of 20%. Or why not 15% instead of 20%?
i'm don't think i would use this option.
However, just in case you could enable this, i would be very interested if HBD and or Hive could be swapped for a wrapped version on Zano, as this would make it private (a confidential asset). A long shot but thought i would ask. Apparently (according to Zano) the Hive DEX would act as liquidity so no extra liquidity would be required.
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Never heard of Zano but free liquidity sounds amazing.
Thanks for your feedback and the free tokens 😀
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@atma.love(1/15) tipped @spinvest
I like the idea although I am skeptical whether there is a market. It is a good idea to offer a liquid version paying 18%. It looks like a slight hit compared to what people are use to but not in light of what we normally see.
If there was a market, I think it could be a viable option. The question is how many would take advantage of it.
Yep, thats the thing. Would need to be at least 5-figure HBD to make it worthwhile at all. Everything less would not earn enough to build a kitty to provide liquidity.
The setup and operation would be simple enough with little to no workload but no sure. Thanks for your feedback, it might be one of these things that look good on paper but dont work out in real.
I think that I like experiments using HBD.
You may know about @hbd.bonds giving +10% yield above the current rate (currently 30%) for a 3 month lockup. They are in the middle of their second bond offering. I've been in both.
I have a simple metaverse game in private alpha testing and we hard peg our in-game currency to HBD. People can swap between HBD and our currency either way. Power up that currency and we pay 75% of current HBD interest, currently 15%. Power down takes 7 days in which time no interest is paid. Powered up currency gets paid the interest weekly in in-game currency. We have less than $200 powered up but it's been a good experiment. It's a way for people to earn almost as much on their HBD as usual while helping provide us with a little revenue.
I just mention that because it's a bit related and someone out there might riff on my idea and try something similar.
I have a few thousand HBD and not sure if I would partake in your experiment or not. I don't require weekly payouts. My HBD holdings are for the longer term. But I might try it just to be involved in another HBD based experiment! Wishing you all the best. :)
Never heard of hdb.bonds, i'll check out the account. Sounds interesting, 3 month lockup for better returns.
Whats the name of the game?
My game is @metarobots #metarobots
Super simple graphics, but a way for me and my testers to try ideas out.
Another thing I do is @tokenfaucet and @gamefaucet
They are free faucets with a base rate of reward with a random possibility of a multiplier. I have already tried a thing once on tokenfaucet where if you hold X amount of token Y then and only then can you collect reward Z. Might be something that can be done to reward people who hold a locked HBD bond.
Just thinking out loud and documenting it here. :)
Another comment has mentioned hbd.bonds which operates a different model (I think @ dalz)?
sounds interesting
I'm wondering if there could be a way to develop this with the new VSC contracts
https://peakd.com/vsc/@vsc.network/next-phase-of-vsc-hive-smart-contracts-and-v4v-joint-dhf-proposal
This could really boost DeFi on hive, and Defi is money freedom