RE: APR for HBD in Savings Dropped to 19% for a Short While. Want to know why?
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Yea its up to the backup witness now ... quite an interesting situation :)
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You are viewing a single comment's thread:
Yea its up to the backup witness now ... quite an interesting situation :)
Yep, lower-ranked witnesses might receive some spotlight for a while. 😀
There are talks about removing backup witnesses from the equation, that way it isn't so volatile. But honestly, the APR % only matters when you collect interest. It can be 0% all month, and 20% when you claim and you get 20%.
Its calculated on claiming .... More news to me :)
99% sure that's the case, I haven't looked at the code for that part, but I am 99% sure that's how it works. I know how it is all acrewed and so on, but never looked at the op code.
Yep, you nailed it. The chain takes into account the elapsed time since the interest was last claimed and the ongoing interest rate at the moment of claiming to calculate the resultant interest.
Meaning I could time it to claim the %20 interest
That's correct, that's how it works now. Long story short we measure the number of seconds since the last claim operation and calculate the value on the fly when the claim happens.
That's interesting! Good to know. So, basically, the "Estimated interest since last payment" shown by an interface like PeakD is based on the current interest, and if the interest varies, so does this estimation. It only matters the interest at the time when you claim it.
Maybe keeping it volatile in a short range gets people used to the idea it's not fixed at 20%.
It also keeps track of your interest regardless of when you claim. You will get your full amount if you do it every 30 days or come back a year later.
Absolutely! It has happened to me to claim after more than 30 days, and every day is counted.
If you claim the interest every 30 days, you will get the compound interest rate, while you wait for 1 year, you will not get the compound rate for the whole year.
That is true. At 20%, if you compound monthly, it's roughly 22% APY. If you leave it for a year, it's still 20% (if the rate doesn't drop in between).
This is good information to have. I will have to remember this, the next time I go to claim. Thank you for providing it to us!