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20% APY: My HBD play

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Cryptothesis
@cryptothesis
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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.

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