HBD Savings Balance Reaches Another All Time High! A Look At The Data In HBD Savings

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(Edited)

The HBD APR for savings was set to 20% back in April 2022. To get interest users need to transfer HBD into the savings on their Hive wallets. This allows for better tracking on the overall balances in savings that are eligible to earn HBD.
The withdrawal from the savings account is three days, that is a reasonable period. It’s like staking with three days unlocking period.

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When the interest on HBD was first set by the witnesses somewhere in March 2021 it was only 3%, then they push it to 10%, 12% and now a 20%! You can see what the interest rate is set by the witnesses here https://peakd.com/me/witnesses.

With the latest Hardfork the debt limit for HBD was pushed to 30%, allowing more HBD to be printed before the haircut rule is applied and HBD is devaluated. The HIVE price to support the current HBD in circulation now stands at 7 cents, down from the 20 cents prior to the HF. If the HBD supply increases this price can move up.


Now let’s take a look at the data and see how much HBD has been transferred to savings and who is taking advantage of the HBD interest rate.

The period that we will be looking at is starting from 2021 to Oct 2022 .

We will be looking at the following:

  • HBD balance in savings
  • HBD interest in savings
  • Daily interest rewarded
  • Monthly interest rewarded
  • Cumulative interest
  • Top accounts that hold HBD in savings
  • Top accounts earning interest

HBD Balance In Savings

Here is the chart for the HBD balance in savings in time.

image001.png

Prior to July 2021 there was insignificant amount of HBD in the savings. Then they stated growing and continue an aggressive expansion up until March 2022, with some bumps in the way. In March 2022 the ATH for HBD in savings was at 3.6M. Then there was a big withdrawal from one account and it dropped to 3M.
A steady growth since then and we are now at 4M HBD in savings. Although these are not such a big amounts, it should be considered that this growth is happening in a full force bear market.

If we zoom in 2022 we get this.

image003.png

A steady growth with some bumps usually when the price of HBD increases.

HBD Interest Rate [%]

Historically the interest rate for HBD has been as follows:

image005.png

  • Mar 2021 - 3%
  • Jun 2021 - 7%
  • Jul 2021 - 10%
  • Dec 2021 - 12%
  • Apr 2022 – 20%

We are now half a year with the 20% interest rate and it is the longest period in the Hive history to hold this percent.
One important question for the HBD interest rate, is what is the proper interest policy to be taken? Should we just keep the interest rate fixed no matter market conditions, or change it depending are we in a bull or bear market? This question deserves a post on its one, and I plan doing one, considering the pro and cons on a different interest policies.

Daily Interest Rewarded

How much interest is paid to the HBD in savings? Here is the chart.

image007.png

At first in 2021 the interest was paid to all the accounts that hold HBD, without the need to be put in savings. Then after the HF in June 2021, HBD interest is paid only for HBD in savings. We can notice the sharp drop at that time.

Since then the daily interest payouts depends on the amount of HBD in savings and the interest rate for HBD APR.

The payouts started growing and reached to around 1k HBD daily prior to April 2022. Then the APR increased to 20% and so did the interest to 1.6k and later to almost 2k HBD daily as the HBD balance in savings was growing.
In the last months the daily payouts have been around around 2k per day, with a recent increase just above that.

The monthly chart for the HBD interest looks like this:

image011.png

We can see here as well that in the last months we have a stableish payouts with just bellow 60k HBD paid in interest per month.

Cumulative HBD Interest Payouts

The chart for the all time cumulative HBD interest earned looks like this.

image009.png

Almost 600k HBD earned as interest in 1.5 year. In 2022 alone this number is at 420k HBD. At the end of the year it will probably be around 600k HBD paid as interest on a yearly level. For comparison there is around 2M HIVE equivalent minted per month, or somewhere around 24M per year, so this will add around 1M HIVE more on top of the 24M.

Top Accounts That Hold HBD In Savings

Who has the most HBD put in savings? Here is the chart.

image013.png

@alpha is now on the top with almost 200k HBD in savings, followed by @muenchen. @mika is on the third spot now, after a long period of time when it was dominating the chart.
More than 6k accounts have at least 1HBD put in savings.

Top Accounts That Earned HBD Interest

The above was the current situation for accounts that hold HBD in savings. Some might have added and others removed. Who has earned the most in the past?
Here is the chart for interest earned in 2022.

image015.png

@mika comes on top here, followed by @muenchen and @parkman.


An overall uptrend for the HBD in savings, with more aggressive increase in the last week!
This is most probably because of the new 30% debt limit after the recent Hardfork. I expect for the HBD in savings to continue to grow as long as the 20% APR stands. This said it is worth debating what is the proper long term interest policy for HBD.

This steady growth for the HBD in savings is happening in a bear market. Meanwhile the overall HBD supply has decreased from 14M in Jan 2022 to 9M in Sep 2022, with a low of 8M back in July. We have seen a steady increase in the HBD supply in the last two months.

HBD has proved to be resilient even under the current conditions and with all the mechanics in place has hold its peg. As time progresses and the concept proves itself more, we might see more and more HBD put in savings, that will on the other hand put pressure on the HIVE price as well.

Not to forget that HBD savings are on L1 blockchain, not an anon defi app. Payouts are in the native HBD token, not a secondary yield token. Much better security and stability. Other dapps can build on top of this.

All the best
@dalz

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HBD is showing its merit. We need to keep building on top of it to add utility, which drives value.

The 20% is fine. We are at such a low level at the moment it is ridiculous. People are too scared of inflation, a concept few really understand. The "printing" of HBD is not a problem unless we ignore development and actually creating use cases.

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Yea the overall supply is still super low .... a lot of room to grow!

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I think the reaction of most Hivers is to save HBD as HIVE is going down. I still feel more potential if I put HIVE in HP. But still I should separate more to HBD savings, just in case the Bearish take longer than expected.
Thank you for sharing!

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After talking to so many whales - as a large % of my network is active in the DeFi / stablecoin staking space (especially staking large amounts on Curve.fi) - there is a lot of growing interest around HBD.

We simply need a way to onboard them. These whales click buttons and move $100k's at a time. They don't want to enter the internal market and place bids and "hope" to get filled before the HIVE price changes on them and causes them to lose money. To them, losing even 1-2% to slippage is a big cost and this frequently happens on the internal market due to HIVE volatility.

I am working as hard as possible to get more liquidity into bHBD-BUSD. I think we've hit on a model that can service these whales to allow them to buy/sell HBD with thousands of dollars at a time and low slippage.

It's going to take some time, but I think it's achievable. More HBD bridged over to bHBD and provided as liquidity is the key to this model's success.

My bullishness on HIVE has increased dramatically with these HBD changes. I think we have a superior model to LUNA which exploded to the top of the charts because of UST. If we can slowly grind our way up there, then we will potentially become one of the largest blockchains in the world (once again).

HBD to the moon - or at least, the circulating supply of it!

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HBD at the moment is at the best possible position it has been in its history. Both in terms of price security, 4% debt to 30% allowed, and in terms of liquidity. It is still very small token with close to 10M in circulation!
One of the best thing about hbd, it has zero premine :)
BHBD is great! Thanks for all the work into it.

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You've already done wonders wrapping HBD & Hive 🙏
Hope we'll have few whales buying and providing liquidity in these pools soon! Having some whales involved could end up being one of best things to the entire ecosystem of products. !PIZZA

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"One important question for the HBD interest rate, is what is the proper interest policy to be taken? Should we just keep the interest rate fixed no matter market conditions, or change it depending are we in a bull or bear market? This question deserves a post on its one, and I plan doing one, considering the pro and cons on a different interest policies."

Interesting! I'm looking forward to this post.

Thanks for your work! :)

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The power of hive can't be underestimated, hbd is the best thing in crypto now, 20% apr during this hard time is massive

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The 20% Apr attached to the hbd is really awesome which we all do appreciate the profit been generated from it when stored in savings.

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Great breakdown. Of those 15 top HBD holders what % do they hold of the 4mil that is locked up?

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Doesn't look like a lot. I did a quick guesstimate from the graph and it looks like only a little over a million. There must be pretty a wide distribution among the mid tier accounts.

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So could be near 25% of the savings. Not sure if that's good, bad or neither, but it's good to know at least.

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I agree hard to say if it is "good" or what, but I think it used to be a lot higher.

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Yea HBD distribution in savings is far better now than a year or six months ago. At the beginning, the mika account had like 1M HBD out of the total say 2M...

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It is really nice to know about this and thanks for sharing.

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Wow!! This is very good to know!! I realized how important this is only a couple of months ago! I’ll try to organize myself to keep my saving safe, hehe. It’s good that many hivers are part of this savings.

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It also makes me happy to see that HBD has held its peg quite well, with only a few minor "burps" along the way.

I haven't really taken much advantage of the HBD rate of return yet, but maybe it's time to get busy again... if nothing else, posting on Hive and putting the liquid rewards into savings for a while could be a good way to build a balance; slow but steady!

=^..^=

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I love to see the interest ticking up day by day. Long may it last at 20%. I hope that soon it will be used for more commerce.

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With the hbd savings system, one earns passively and perhaps won't have to work all days of his life.
The increase in the percentage is a big encouragement to attract more people.

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This gonna be some crazy numbers and volume in the inner market once we hit another proper bullrun.

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Nowadays I am also building my HBD savings. I regularly transfer HBD to savings. I currently have $143.24 HBD in savings, and currently the estimated interest since the last payment (18 days ago) is $1.251 HBD. I expect it somewhere around $2 HBD at the end of the month. We will see. I will write about it.

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This is a great info, I believe hbd will regain it stand with the help of everyone giving efforts into it

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Wonderful reports. Everything is fine with HBD, even 20% interest does not pose a threat to the economy of Hive. But the upper cap debt limit to 30%(from 10%) might cause some problems in the coming future. I am not an economist, but I dont think it's healthy to raise the debt limit.

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Targeting having a 1k hbd in store soon .
I love the opportunity this offers and I m glad we have it here.
The process is pretty simple, buy or earn hive, convert to hbd, send to savings and lock in your earnings.

Is there a way to buy hbd directly?

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Alpha is fking crazy.
Is that the highest valued account on Hive?

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Thank you for sharing these insights with the community! New to HIVE here but this article definitely helps learning more about it :)

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thanks for the data much appreciated! i am a fan of the high apr as an investor, but i wonder if it is good/sustainable long term, i think everyone should watch how the high interest rate affects both hive and hbd supply, and prices. I have an economics degree and im not sure how it will affect things myself, it definitely makes one desire hbd apr stability in bear markets, but in a bull market, 20% apr on a stable coin is leaving money on the table.

Perhaps the witnesses could discuss the affects they see after a period and respond to market conditions as they change. For example, if it is deemed the high interest rate is having a negative affect on hive, and causing secondary problems, a gradual adjustment can be made to that, id also recommend staged moves on the downside, in the same way they gradually raised the apr over time. this will give future investors security that they have time to respond to changes in apr, as opposed to radically cutting the rate in half in 1 shot for example.

just my 2 cents and thanks again appreciate all your posts!

!PGM

!LOLZ

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Thanks, interestingly I commented on that one 2 months ago!

I think three things could help for HBD:

  1. set interest rate based on hive price. As hive goes down, hbd interest goes down, as hive rises, hbd interest rate rises, in a perfect world, this minimizes hive inflation, and reduces attractiveness of hbd when hive price is weak, helping alleviate a self reinforcing downward price movement in hive. And as hive rises above some level, hbd interest rate rises, this slows hive price rise. This would help long term in my opinion.

Hive between 0.10 and 0.50 usd 5% apr on hbd
Hive between 0.50 and 1.00 usd 10% apr on hbd
Hive between 1.00 and 2.00 usd 15% apr on hbd
Hive between 2.00 and 5.00 usd 20% apr on hbd

  1. Change hbd savings into a CD (certificate of deposit) like concept. To obtain the above aprs one must lock their hbd for at least 1 month initially, then can withdraw that individual hbd after 1 month, so if I had 100 hbd in the savings cd for a month, then today add 100 hbd. I can withdraw 100 hbd today and 7 days from now, when the 100 from today is time unlocked, that can be withdrawn.

Give the option to lock the HBD for longer time periods to earn multiples of the current APR, and have that payout locked in like an individual contract. So if I lock my hbd for 1 yr, perhaps I get a 10 or 20% bonus to my APR.

  1. A new way to facilitate the hbd market, new frontend for trading and treasury services. A lending market for hbd like hive power has. A way for individuals and businesses to come and seek HBD loans from other individuals, microlending basically.

!PGM

!LOLZ

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The tokens that the command sends are: 0.1 PGM-0.1 LVL-0.1 THGAMING-0.05 DEC-15 SBT-1 STARBITS-[0.00000001 BTC (SWAP.BTC) only if you have 2500 PGM in stake or more ]

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I never knew that HBD interest was initially rewarded to all holders. After what knowing happened to LUNA, good thing the reward was only issued to those under savings. 😊

!1UP

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How it works with savings ? I have since 9 days 4 HBD in my savings and got nothing till now.
Can you explain why ? Thank you very much !

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You claim once per month. Check the peakd.com wallet

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Thank you for this information !

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