Good to know but might be irrelevant considering the macro-economics.
Offer decent APR on a stable coin and it's all but guaranteed that we hit the haircut limit instantly.
To be fair the APR being discussed is less than a lot of defi projects, and also locked for 3 days.
But we also don't know the demand to hold HBD given the new cap to the upside (increased stability).
Should be interesting but I expect some speedbumps.
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Not if the price of HIVE goes up.
Right yeah of course... it's just that... an APR of 10-20% is legit better than curating from the reward pool. Not only that... from what I'm hearing this APR has no competition involved like there is with the reward pool and other defi protocols. It's just a flat-rate APR that won't vary with competition. That's a pretty big problem. Only a set amount of inflation should be allocated to the savings accounts: equally distributed by stake-weight just like every other Defi platform (and Hive itself).
I need to think about this more.
It's a different model from reward pools for sure. It puts a high priority on witnesses to set APR appropriately (so vote accordingly!). And the haircut of 10% may be too low or have been a bad idea in the first place (if you know the history, it was made up by Steemit on basically no analysis). So overall I agree with you on the high potential for significant speed bumps. However, I am not sure it will fail.
We currently pay 3% interest on HBD to everyone, including exchange custodial funda. Paying 10-20% to targeted accounts with a minimum staking mechanism, may produce a lower extra inflation than 3% for all. But reality will tell and this is a witness parameter, so there's not much to worry about really.
The 10% haircut rule might create issues, but I agree with blocktrades that we should leave it untouched in HF25, before we understand better the overall effects these changes will have on the Hive economics.
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