If you want to save HBD and get the 12% yearly yield, do it while it is below $1

avatar

HBD is supposed to be a stable coin, but because of the low liquidity and the low market cap it has, in the past, been wandering around 20% above or below the supposed $1 peg.

It is supposed to be 1:1 to the USD but it is not. The 12% yearly yield is a good deal, as it is much more than basically any bank I can think of would offer in return for saving dollars.

Because of the price fluctuations it is not always a good idea to buy HBD to put on saving. If you bought it when it was 20% above the 1:1 peg you would take more than 1 year to recover from the impermanent loss.

_2021_09_13_at_12.47.08.jpg

However right now HBD is being traded slightly below $1, which makes it the time to buy and save. If you plan on getting the yield from saving HBD it is recommended to do it before it goes back to $1 or above (to avoid losses).

I have some HBD saved and will buy more soon. I don't plan on touching it because I want to enjoy the power of compounded interest.

I was very willing to invest and had some money laying around last month, but because HBD was so much above the peg I couldn't do it, I would take an insta-loss. Now that it is finally below $1 I don't have that much to invest, but the time is now, while it is below $1, so I am trying to save some to put it in.

Hopefully it stays below $1 long enough for me, and anyone else who might be interested, to save HBD, because it is unwise to get in above $1

Click here and vote me for witness on HiveSigner

Or use your preferred signing tool to vote me:


https://vote.hive.uno/@igormuba



0
0
0.000
12 comments
avatar

Isn't it 10% yearly yield?

0
0
0.000
avatar

My mistake.
You are correct, it is 10% a year, not 12%

0
0
0.000
avatar

10% plus the additional gain from being below $1. You're not wrong. Once it returns to $1, you'll have locked in additional gains. That's what I thought you meant with 12%

0
0
0.000
avatar

That is a valid insight and it is true!

0
0
0.000
avatar
(Edited)

I make 10% holding stable coins in CRO, so HBD would have to beat that for me to even consider it. There is less risk holding USDC and TGBP than HBD because I've seen HBD go to 30 cents before. If HBD is already at 98 cents and crypto barely dipped, if there is a crash, I doubt it would stay at or near one dollar. They can't even keep it pegged. If I buy HBD I wait for 30 cents. I hope that doesn't happen, but I earn HBD for free so I'll just stack it up that way to be safe.

0
0
0.000
avatar

HBD is more stable than it was in the past but I understand where you come from. It is a stable coin that is struggling to stay stable

0
0
0.000
avatar
(Edited)

Yeah I don't think we have got to see the new HBD perform in a real bear market yet, so I don't think it's possible to say what it is. haha We'll cross that bridge when we get there, hope not any time soon!

0
0
0.000
avatar

Thanks for information about HBD. I'm thinking about your proposal.

0
0
0.000