20% is fine right now. There needs to be a LOT more HBD in existence if we ever want it to become a useable and recognizable stablecoin. There needs to be tens of millions available for it to ever go mainstream. If and when Inleo starts breaking into the mainstream the attention on Hive will grow exponentially and there will need to be liquidity for new users wanting HBD. Especially if they want any size. What good is it if one $100k order breaks the peg to the upside or knocks it to $.90 on the down? If we're serious about Hive becoming a household name, we can't be focused on "protecting" against the small risk of a downward spiral. Rather we need to be focused on building the framework for the future. 20% has obviously not created a buying frenzy, but it HAS added to the liquidity slowly but surely. I don't see a reason to go higher, but I certainly don't see any reason to drop it.
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Thanks a lot for sharing your interesting point of view!
HBD is not a true stablecoin, it is basically a token that grants you getting Hive that is worth one dollar. If there was no Hive Stabilizer that keeps it more or less pegged to USD (and reversed conversion) it would range quite a lot.
Speaking about reversed conversion, it also grants an unlimited amout of HBD in existence. You can anytime convert your Hive and get HBD. However, when Hive price is low, you obviously get less then if Hive was worth say 3$.
How exactly has the 20% APR added to liquidity? HBD in Savings is not liquid, it is staked.
I wrote down four reasons that should lead us to reconsider the current rate earlier this week. The post has over 100 comments, perhaps, you may find it worth reading (both the post and the discussion).
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