Stability internally would cause the Asset to be more desirable and cascade to increased liquidity elsewhere. Ultimately HBD as a stable coin is the goal, and it would be even better if witnesses started offering HBD interest for savings again. More reasons to hold Hive... and to hedge against ever increasing transaction fees on competing ecosystems.
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I would love to have HBD interest and have witnesses actually using their parameters again. That's something I've called for many times in the past to no avail. And then I realized that many of our witnesses aren't that versed in economics/finance anyway, so it might be better that they didn't use the parameters. (That's also one of the reasons why I have continually called for new/better witnesses to fill the most important slots.)
In the past, one of the arguments made for not paying interest was that exchanges were the largest holders of tokens and the rewards would be going to them. But many exchanges now have the ability to stake with them, especially with DeFi tokens, so in my opinion, this is something that could encourage more holding and spark new/more interest in HBDs and the Hive chain.
Why not give it a shot?
One problem with interest would be the potential overvaluation, so...
What do you think about interest on savings accounts?
Maybe bring some of that hive back from the exchanges and lock it for 3 days?
Interest on 'almost liquid' funds (3 days lock) is not something my bank would offer me.
The alternative might be to introduce the option 'to stake' HBD in the same manner we stake Hive ( for 3 month)
Both 'staked Hive' and 'staked HBD' should be taken into account for calculating 'vesting shares' then.
I think your bank would call it a cd, and require a longer lock.
Interest on locked liquid hive brings the hive back from the exchanges, gets diluted a little less, and still rewards authors by inflating the inflation.
HBD was designed to be a currency, not a store of value, though it does that, too.
It primarily gives us a way of avoiding 10k hive pizzas being worth 350m usd at some point in the future.
Hold your hive, spend your hbd.
What benefit does staking hbd give the chain?
HBD is 'Hive But Disguised', there's no reason to give any special preference to the Hive holders over the HBD holders.
Let's say Alice spent $100 to buy 1000 Hive and Bob spent $100 to buy 100 HBD.
I can't see why Alice should have more 'rights' than Bob.
I'd go for the witnesses to pay interest on hbd when it is below the peg, but getting those folks to do things from outside their own worldviews is like pulling teeth.
I'm not sure that paying interest on debt outside the witness parameter is a good thing.
We'll have to consult a better mathematician than me.
I just hope we can get some movement here, it's been several calendar years that we have been waiting.
We've been having these conversations since hf16.
At this point, any forward movement gets me excited.