You are viewing a single comment's thread from:

RE: HBD Interest Payments For August 2024 | 103K

in #hbd2 months ago

Interesting analysis, thank you for providing such detailed data.

I'm curious to see how these shifts in HBD APR will influence Hive's ecosystem in the long run.

Recently, I cant help but notice the volatility of HBD and I would like to ask your opinion if the lowered APR to 15% has something to do with it?

Sort:  

I don’t think APR does anything to HBD price fluctuations in a long run. Peg works fine and price always tends to make it back to 1$ regardless it goes up or down. Since it is a traded asset it is normal to see price fluctuations.

You're right about that too. Maybe I'm just overthinking it since HBD is often converted to Hive during market conditions where Hive's price is well below $1. Initially, I thought that with the HBD APR dropping to 15%, holders might be dissatisfied, leading to increased HBD selling and causing the volatility.

I’ve also noticed that HBD tends to return to its peg, thanks to the HBD Stabilizer.

In any case, I still think HBD is a good asset to hold, but maybe not right now. Perhaps when Hive's price approaches $1 again, hopefully soon.