Yesterday I made a post about the new Hive => HBD conversion feature and showed that it can potentially lead to a high APR
By the comments it looks like, however, that many users are still confused about this feature and don't know how to use it. So this is a post about just how to do that! :) If you don't know anything about this feature have a look here.
Use Peakd.com
Peakd is the easiest way to use this feature. If you don't know what Peakd is, check it out now! It is a frontend like ecency for the Hive blockchain and offers many more features than hive.blog
On the wallet page you will find the option for "Convert to HBD" in the drop down menu on your Hive balance.
The pop up window again explains the basic concepts and risks of using this feature. But I think the most basic take away is that you should just use this when HBD is at a minimum of 1.05 and to be safe at 1.1 or higher. So always first check the price of HBD before doing this (The higher HBD is, the higher are our profits).
After this you immediately receive half of the collateral (minus 5% fee) in your wallet in HBD. The other half is being converted within a 3.5 day window. You then receive the other half and its value is dependent on Hive's price movement. If Hive should go up in value, you will receive less, but you can then also sell your Hive at this higher price (again, there are some risks involved, but they get mitigated when you use this feature over a longer time period; just make sure that HBD is at 1.1 or higher).
You can then use the HBD received to sell it on the internal market for Hive. This makes sense if you want to be "all in", otherwise you are only converting 50% of your Hive into HBD. Alternatively you can keep the HBD you received (but keep in mind that it will eventually lose value as it will go down to its pegged value at 1$) or sell the HBD for Hive and keep the Hive (or power it up).
If you decide to restart another conversion request with the remaining HBD you can try to gain advantage of the high HBD prices as much as possible. It probably makes sense to do this process at least 5 times as you will by then only have about 3% of your original Hive left to convert.
Let me know if there is still something missing!
Check out the Love The Clouds Community if you share the love for clouds!