20% APY: My HBD play

2 mo
1 Min Read
277 words

I haven't been a big fan of HBD.

But with the news of 20% p.a. of interest in HBD released, it's time to think about my Hive-backed dollars play.

The best part of this change is that I do not need to go the bank to get this fat interest rate for my savings. I can do it right at my Hive account.

Some basic ground rules to understand first.

  1. There is a cost involved in exchanging Hive to HBD, typically 5%. And the entire exchange is completed in 3.5 days, based on a 3.5 day median valuation.

  2. Next I have to move my HBD to my Savings to generate a 20.00% APR as defined by the witnesses.

  3. Once transferred to the Savings, the amount that can be used (liquid) is subject to 3 days withdrawal waiting period.

  4. Interest is claimed every time there is an interaction with the Savings account according to this post.

So in sum, the cost is 5% in exchanging Hive to HBD.

What's my plan?

Since I have a DCA plan for Hive, I would bite the bullet and hold the lump sum amount of HBD meant for DCA in a year in Savings. This ensures that I have the 20% APY, which is better than leaving it in the bank.

After that is done, I will swap my HBD to Hive at the start of every week or month.

Overall, I should have gotten a better deal, given my DCA plan.

Is there a flaw in this thinking? I would like to get some advice from the Hive community.

Image Source

Posted Using LeoFinance Beta

You can exchange HIVE for HBD instantly using the internal market.. no need to wait 3 days


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Well, technically, no bank will give you a fat percentage like that at all. Regular interest hovers at a fraction of a percent (definitely less that 1%). Even CDs only usually yield one or two percent. You might find some banks higher, my local bank gives you 4% up to 1k of deposits. Over that and it switches to a lower percent. Even investing in the stock market, on average, only yields 12-15 percent. This new HBD rate is great and when I start bringing fiat back over to the blockchain I’ll be earmarking some it for HBD rather than HIVE. !PIZZA !BEER !WINE !LUV and !hivebits


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