![hbd_yields  Copy.png](https://images.hive.blog/DQmQYtgcAKqMudPiB3N9XynQNn8JpjPf7ErnoSnANHU5BAq/hbd_yields%20-%20Copy.png)

<h2>HIVE Dollars have officially begun accruing interest on the Hive blockchain.</h2>
The first distributions of [HIVE Dollar (HBD)](https://www.coingecko.com/en/coins/hive_dollar) interest have occurred and will continue to pay out at a current rate of 3% APY, or approximately 0.25% per month. 

Hive validators recently updated node parameters to include interest rates on HBD held in all Hive wallets. This is the first phase of a decentralized effort to reward HBD holders for the associated risks of investing in Hive’s native stablecoin and marks the first time in Hive’s year-long history that interest rates have been set above zero. This collaborative effort between Hive's validators potentially kickstarts additional decentralized finance (DeFi) initiatives in the Hive ecosystem.

HBD interest rates may change in the future based on market performance and other blockchain-related economic and financial targets. 

*You can find the current HBD interest rate on [Hiveblocks.com](https://hiveblocks.com/) under “Hbd interest rate” on the “Properties” side-panel. Interest rates are expressed in whole-number values (300 = 3%).*

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<h2>How to claim HBD interest</h2>
HBD interest is automatically distributed, but in order to collect the interest distributions, users must perform one HBD-related action on the Hive blockchain. These actions include claiming post rewards in which HBD is earned or transferring HBD to/from savings or to another wallet.

Currently, interest can only be collected once every 30 days. If you have performed a recent HBD action, then you will not receive interest until 30 days have passed since that last action.

*You can find your last HBD payment information on the left column of your account page on Hiveblocks.com under the "Hbd seconds last update" and "Hbd last interest payment" sections.*

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<h2>About HIVE Dollars</h2>
HIVE Dollars are a native stablecoin on the Hive blockchain. The coin is soft-pegged to the U.S. Dollar price by feeding HIVE token prices into the network via Hive validator nodes. These Hive validators act as price oracles that use HIVE prices as a measure for HBD creation and distribution.

HIVE Dollars are valued by the blockchain in terms of how many HIVE can be received through a mechanic called a “conversion.” One HBD can be converted into one Dollar’s-worth of HIVE, based on the median price of HIVE that’s reported by Hive validators over a rolling 3.5-day period. Once the conversion is completed and the new HIVE tokens have been created, the HBD is destroyed. This conversion function helps stabilize the soft peg by offering a Dollar-value exchange of HBD for the blockchain’s staking token – HIVE – and by reducing the supply of HBD. 

HIVE Dollars are created by the blockchain and distributed as rewards through content creation and from the [Decentralized Hive Fund](https://peakd.com/me/proposals) (DHF) – a dedicated, automated fund from which stakeholders can award HBD funding to users based on proposals for development, marketing, or other initiatives. The token can also be traded on Hive’s internal decentralized exchange, as well as on select custodial exchanges such as [Bittrex](https://bittrex.com/Market/Index?MarketName=BTC-HBD) and [Upbit](https://upbit.com/exchange?code=CRIX.UPBIT.BTC-HBD).

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