I don't usually post on LEO but after reading @gadrian 's post on @smooth 's HBD stabilization protocol I thought I'd share a few thoughts I had on this.

Since then a few witnesses have set their HBD interest rates to 3% and I think this will actually end up being a larger part of stabilisation than some people may intitially think.

Consider coins that earn you a interest from either POS or general rewards like ALGO, ATOM, DAI or TEZOS.

Quick side note: I know there is much more lucrative earning staking coins out there I only mention these specifically due to their appearance on major web wallets like Coinbase, and due to the simple interface in exchange for their staking fee you get in return a Fiat representation of your “earnings” broken down in the rewards section AND what I’m specifically mentioning in this post is ease of use, earnings represented clearly + acceptable use cases of such coins

Those that know by sending them to either their ledger wallet or holding them on a specific coin wallet their is no staking fee and that can increase your staking rewards significantly like in terms of ALGO, moving from Coinbase to another wallet can increase your APY from 6% to to roughly 7.3% (or the max currently awarded to ALGO stakers which is no small amount especially when compounded over time.

But in terms of stablecoins, Take DAI for example - holding on Coinbase would give you 2% annual returns which compared this this proposed 3% already puts HBD above Dai in terms of actual monetary gains.

Now I know that this HBD interest increase is most likely not going to be around forever but for the time being it could look to others an attractive alternative to the occasional 10% > gains they might make speculating it off chain.

Thats not even mentioning With Hive-Engine LP Pools with actual rewards just around the corner by allowing HBD holders to earn interest on their holdings not only incentivises users to hold their HBD rather than sell, helps with the peg but by having a more stable coin hardbaked into the chain it could really allow us to tap into the already $15 Billion> strong DeFi Market that is out there that perhaps other users would be put off by the lack of stability within HBD. I don't know let me know your thoughts but regardless and interested to see how this pans out and again you have to hand it to the accounts that are doing all this work for us behind the scenes to make HIVE even more valuable than it already is!

Hive Power up Day

This is why I am powering up and will continue to do so. I have started a new community and will be posting about that soon too!

The power of the community, the devotion of the devs and the sheer possibilities that can come from all the projects coming out recently and that are going on behind the scenes to paraphrase is "exciting af."

Stay safe,
H

Posted Using LeoFinance ^Beta