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Offline XsharesO

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Interest rate
« on: November 12, 2014, 12:53:29 AM »

So I recently bought a few bitusd. I got them at about 47 bitshares. How is the interest rate paid? Do I have to hold for a year?

Offline biophil

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Re: Interest rate
« Reply #1 on: November 12, 2014, 01:19:12 AM »
So I recently bought a few bitusd. I got them at about 47 bitshares. How is the interest rate paid? Do I have to hold for a year?

Welcome, XsharesO. Interest is paid any time you execute a transaction with your bitUSD. If you send them to yourself, if you create an order to sell them, or if you close a margin order with them, you'll get paid whatever interest is currently due you.

It's important to note that interest does not accrue on bitUSD that is on orders! So if you have a standing order to sell bitUSD, that bitUSD stops accruing interest the minute you tie it up in an order.

Wait a few days, then go to tMy Accounts and then click on your account where you hold the bitUSD. If you scroll to the top and look over on the right, it will say "estimated yield." That's the amount of the asset that you'll be paid if you transact your whole balance right now.

Offline XsharesO

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Re: Interest rate
« Reply #2 on: November 12, 2014, 01:22:45 AM »
Good answer, thanks. And it pays about 5% p.a. now, right?

Also there's talk about this weekly closure of shorts. Is there a link I can read about this?
« Last Edit: November 12, 2014, 01:39:16 AM by XsharesO »

Offline biophil

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Re: Interest rate
« Reply #3 on: November 12, 2014, 01:57:04 AM »
Good answer, thanks. And it pays about 5% p.a. now, right?

Also there's talk about this weekly closure of shorts. Is there a link I can read about this?

Oh man, no, not anywhere close to 5%. That number, though popular here, sadly has nothing to do with reality. The actual rate is below 1% right now, but it varies. You can compute it for yourself by going to the USD page on svk's block explorer website (sorry, I'm on mobile and can't recall the URL). If you divide the "collected fees" number by the total number of BitUSD, that will give you a lower bound on the annual interest rate.

I don't have a link to the 30 day short closing thing. Sorry.

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Offline XsharesO

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Re: Interest rate
« Reply #4 on: November 12, 2014, 02:00:26 AM »
Thanks again. How can I borrow money at 1%? Do I get in line and sell bitusd short?

Offline biophil

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Re: Interest rate
« Reply #5 on: November 12, 2014, 03:56:43 PM »
Thanks again. How can I borrow money at 1%? Do I get in line and sell bitusd short?

Yeah, something like that. In the bitshares client you can see a list of open short orders, and by default they're ranked by the % interest rate they're offering. When people purchase the shorts, the high-interest ones go first, so if all you offer is 1%, your order is probably unlikely to be matched.

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Offline Methodise

Re: Interest rate
« Reply #6 on: November 18, 2014, 09:44:40 PM »
Surely,

if the average interest rate being paid is much in excess of 1%, then the average interest rate being received by bitAsset longs is much in excess of 1%.

And surely it is too early to say where these bitAsset yields will settle.
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