Hello EDSers and Saturday Savers, today is a special day as we announce the newest addition to the EDS family. We're innovating and introducing HBD to the EDS eco-system.
Why a HBD-backed token?
Just makes sense, we have growth from HP covered with @eddie-earner and growth from delegations covered with @eds-vote so growth from HBD seems to be the best logical next step and we welcome @eds-d. The current interest rate of 20% APY is too good to pass up, even if this drops to 8-12% in future years, it is still not bad and EDS will still be getting fed HIVE to power up to help increase the EDS APY.
Lastly, I dont think anyone else has released a HBD token like this yet so EDS gets to set the benchmark 😏
EDS Dollar - EDSD
This will be the last token to be released by @eddie-earner because all 500k EDS are now allocated. Some will be aware that I have been itching to release an HBD-backed token for EDS for a long time but I could never think of a good model. I was thinking how can EDS compete with the 20% APY being offered for saving HBD currently? This was the wrong way of thinking, let me explain.
We released @eds-vote 7 months ago and it's been pretty successful with 120k HP being delegated to it. You might think that's not alot in the grand scheme of things but when we factor in that @eds-vote pays out an APY of 4-5% to HP delegators (50% of curation rewards), it seems more impressive. This shows me that EDS token holders understand exactly what EDS tokens are. Savvy investors will take the hit today to get a better return later knowing the potential of EDS tokens based on its 3 years history of performance.
Knowing that people are happy to take a hit on APY to get EDS, I realise we dont have to compete with HBD's 20% APY cause we have highly sought-after EDS tokens. Each EDS token is backed/pegged to 1 HIVE and they are currently paying out a HIVE income of over 25% APY. Thats the USP for @eds-vote and thats the USP for @eds-d
For EDSD, I have cloned eds-vote and made a few edits.
EDSD Token
- Pegged and backed to 1 HBD each
- Unlimited mintage
- 3 decimal token
- Earn 50% of HBD interest as EDS tokens each week
- 50% of HBD interest is converted to HIVE and powered up to @eddie-earner
- 100% passive, no actions or staking required
- Easily buy in and cash out
Investors' Path Start to Finish
- Send any amount of HBD to @eds-d
or - Set up a HBD recurring payment to @eds-d (for Saturday Savers 🤑)
- Receive EDSD in your hive-engine wallet a few moments later
- Hold EDSD to receive weekly EDS rewards each Monday
To exit
- Request cash out in the weekly EDSD post
- Send your EDSD tokens to @eds-d
- Receive your HBD back after 3-4 days
How it works
To keep it short and sweet. People send us HBD and we add it to a savings wallet to earn currently 20%. @eds-d will operate with a liquid 500 HBD kitty balance supplied by @eddie-earner. This kitty will be used to fund weekly EDS mintages and when the HBD interest payment is paid each month, the kitty balance will be topped up back to 500 HBD. Each week I will convert the required amount of HBD into HIVE. 50% of this HIVE will mint new EDS tokens at 1 HIVE each and issue them to EDSD token holders. The remaining 50% will be powered up to the @eddie-earner wallet to increase the EDS income pool.
Because we are converting HBD into HIVE, the amount of EDS tokens EDSD token holders receive will be different every week. When the price of HIVE is low, more EDS will be minted and when the price is high, less EDS will be minted. Either way, it will always work out in dollars to be 50% of whatever the HBD interest is, currently this would be equal to 10%.
Example weekly reward for holding 500 EDSD
Based on current market prices
- At 20% HBD interest, 500 EDSD will earn 100 HBD per year which is 1.92 HBD per week.
- 50% of this is 0.96 HBD per week
- HIVE is currently $0.38 and 0.96 HBD gets 2.49 HIVE
- The investor would receive 2.49 EDS per week in this example.
The first EDS payout to EDSD token holders will be on Monday 8th January
FAQ's
Q - Why would I want to send you my HBD instead of earning 20% myself?
A - EDSD offers HBD token holders an additional way to earn from their tokens. EDSD rewards offer exposure to HIVE via ownership of newly minted EDS tokens and future HIVE income rewards. HIVE during a bull year can increase 5-10x which HBD can not.
Q - Can i lose money?
A - No, think of EDSD as a redeemable bond that is priced at 1 HBD each. You buy it by sending HBD to @eds-d and when you need your HBD back, you cash out by sending your EDSD back to @eds-d. All HBD received is added to the savings wallet to back your EDSD.
Q - Is there a minimum amount of EDSD I need to hold to get EDS rewards?
A - EDS is a 2-decimal token and minimum amount that be minted is 0.01 EDS. To work this out quickly. Simply divide the amount of EDSD you have by 521.8 and the resulting number must be higher than the value of 1% of HIVE's current dollar price. Currently with HIVE at $0.36, the minimum amount of EDSD needing to be held to get an EDS reward is 1.88.
Q - Why can I not see my EDSD in my hive-engine wallet?
A - EDSD have not have been traded on the exchange yet so no price has been assigned to them. Please search "EDSD" in your wallet to confirm your balance.
Q - How can you issue EDSD rewards weekly when HBD interest is paid monthly?
A - EDS has built up a HBD balance of 500 from content rewards and will use this balance as a liquid HBD kitty. We use this HBD kitty to convert to HIVE weekly and issue EDS rewards and when the monthly HBD interest payment arrives, we top up the HBD kitty balance back to 500. The kitty lets us pay out rewards to EDSD token holders faster without having to initially wait 4-8 weeks to earn enough HBD from interest rewards.
Q - How do EDSD help EDS and its HIVE income APY?
A - 50% of the HBD interest earned will be converted to HIVE and powered up to the @eddie-earner account. The EDS HIVE income pool amount is directly connected to the @eddie-earner HIVE POWER balance and when the HIVE POWER balance increases, so does the HIVE income payment from EDS. To give a loose example of possible EDS APY growth, @eds-vote increased EDS's HIVE income by 40%. To have the same impact, @eds-d would need to have 17k HBD in its savings wallet.
Q - How do i cash out when im done?
A - You send your EDSD tokens to @eds-d and your HBD will be sent to the same address around 3-4 days later. The delay is because your HBD has to be withdrawn from the savings account which takes 3 days.
Q - Are you selling and buying back EDSD on hive-engine?
A - No, we offer direct EDSD mintage and buyback through the @eds-d HIVE wallet with no secondary market required. Tokens holders are free to transact but no selling or buying liquidity will be offered by @eds-d.
Q - What happens to EDSD when they are returned to @eds-d?
A - These EDSD tokens are burnt and sent to @null. After the HBD is returned to the EDSD returnee, those EDSD become worthless.
