RE: APR for HBD in Savings Dropped to 19% for a Short While. Want to know why?
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from what i get it will only vary for now between 19%-20% which is something i can live with but still, i consider a 20% APR to be freaking awesome and should stay that way. I heard some complaints that this % is not sustainable and such or that people will think it's a scam or something, i highly doubt that.
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Well, it stayed at 20% throughout a very tough bear market, when it's the hardest, so I imagine the track record will be on our side, just as it is for Hive. That doesn't mean the APR won't be changed at some point or that it shouldn't. I believe being flexible to match market conditions is important.
totally agree and also wanna highlight that you said we've made it in one of the toughest years. If this or next one are better years and i see posts saying to limit it to 10% or such by some other witnesses without an actual explanation i will be frustrated :p
Where HBD's APR may pose some issues is in the way we act on it. If it's a short-term downtrend like it was and maybe it will continue to be because the uptrend is not guaranteed in the short-term despite BTC reaching almost as high as the point after the ETF approvals, then people are likely to sell HIVE into HBD for the interest and protection against the downtrend. That puts pressure on the price of HIVE, which is already in a downtrend because of the general market conditions. So, the move down is accelerated. I'm not sure if a lower APR would make people think twice about doing that. It's just a matter of mentality and trying to ride every wave, no matter how small. But a higher incentive to swap and hold the stablecoin for the short term probably doesn't help.