We all know by now that the Hive blockchain is a web3 social media platform that allows users to earn rewards in the form of Hive tokens for their content contributions to the platform and other means of engagement through different communities and projects. While the governance token of the platform is Hive and through powering it up you can earn from curation, there is also an alternative for a more passive earning in the form of HBD Savings. Through this feature at Layer 1 level you can deposit HBD into a Savings account and earn 20% compounding interest as an incentive for holding HBD stablecoin rather than converting it to Hive and Hive Power and earning rewards through curation and commenting. And while I have moved all my HBD into HIVE in order to capture the governance token uptrend, I just realized that there are some important benefits for HBD Savings compared to Hive Power.
100% Passive income stream
First of all, HBD Savings provides a passive income stream. By depositing HBD into savings, users can earn 20% compounding interest without having to actively curate or comment on posts. This allows users to earn rewards while they sleep, without the need for constant engagement or effort. This can be particularly appealing for users who may not have the time or inclination to actively curate or comment on posts, but still want to earn rewards on their HBD holdings. And believe me that I must confess that I miss the laziness of earning while I sleep or I don't need to do anything all day long.
Stable and predictable earnings
Another benefit for HBD Savings is the fact that it offers a stable and predictable earning potential. Unlike earning Hive tokens through curation and commenting, which can be subject to market fluctuations and varying rewards depending on post popularity and voting patterns, HBD Savings offers 20% APR that you can always count on. This provides users with a stable and predictable earning potential, which can be especially useful for users who prefer a more conservative approach to earning rewards or who may be risk-averse. My appetite for risk has opened up lately when I saw HIVE hovering around $0.40, but cannot beat a steady and dependable revenue.
Higher flexibility and liquidity
Another benefit which also inspired me to write this post is the fact that HBD provides flexibility and liquidity. Unlike Hive Power, which requires users to lock up their tokens for a long period of time and may limit their ability to freely transact or withdraw their tokens, HBD savings offer greater flexibility and liquidity by only a 3 days cooling period. And if there is a market pump, you can always use HBD to HIVE conversion which should give you 50% of the funds converted in Hive right away and the other 50% after the cooling period ends.
Bottom line is that even if I have converted all my HBD to HIVE and powered it up when the Hive price was $0.40 and through the price appreciation and curation I have some nice gains, I still miss how passive holding HBD into the Savings account is while earning a sweet 20% APR. Thus, if you are lazy or simply don't want to have a routine for curation and engagement, HBD Savings is the perfect option. And I intend to get back at it once Hive price continues to appreciate and get closer to the $1 mark.