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RE: 4 Reasons for Lowering the HBD Savings Interest Rate

in LeoFinance9 months ago

The interest rate for HBD should be set at 12%, aligning it with the combined returns from staking and curating on Hive, which is a balanced approach. Currently, curation on Hive averages around 9%, and when adding the 3% from staking Hive, it sets a reasonable benchmark for HBD interest. My initial investment in Hive was made well before the increase in HBD interest rates. Had I been aware that HBD interest rates would surge to 20%, my investment choice would likely have been HBD, given its undeniable appeal at such a rate. Now, I find myself waiting for Hive's value to increase so that I can switch my investment to HBD, hoping the interest rate remains at 20%—an ideal scenario.

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Thanks for your personal view. I believe the HBD interest rate should not match the HP one, but that is just my opinion - from my point of view the people who actively help the network grow should take more profit than those who simply stake HBD. And staking HBD should definitely be less appealing than using HP on a daily basis.

Aligning the HBD annual percentage rate (APR) with that of HIVE could be a beneficial initial move. Although HIVE is fundamentally the cornerstone of this platform, there appears to be a disconnect between the platform's major stakeholders and decision-makers regarding its value, contributing to HIVE's declining price. The establishment of a 20% interest rate for HBD seems to correlate directly with HIVE's downward trend. A more tactical approach to managing the interest rate could also support HIVE's price, especially now, as we anticipate the start of a bull market. Lowering the HBD rate could redirect investments towards HIVE, potentially drawing in more investors and ensuring we capitalize on the bull market. I believe that without halving the HBD rate soon, HIVE may struggle to surpass the 30-40 cent mark, risking our chance to benefit from the upcoming bull market for HIVE.

Sorry for the off topic, but I cannot help myself: Why are you muted by LeoFinance?

One of the people that is in charge there doesn't like me for some reason.