Hive Backed Dollars Liquidity
Now that the Witnesses have increased the APR on HBD to 20%, it is paying the highest APR of any stablecoin.
In addition, Leofinance has created an HBD-USDC pool on its Polycub platform, on Polgon, which pays over 40% APR. (Actually 57% at the time of this post)
Thus HBD could be the application, token and use case which brings many new investors to Hive, to buy Hive, HBD and check out the blockchain community. As a 4 year old stable coin, HBD is one of the oldest and most stable Stablecoins.
But the problem is Liquidity, so how to fix it?
@khaleelkazi , the creator of Leofinance.io, HiveStats, Cubfinance on Binance and now Polycub on Polygon sprang into action creating a way to create liquidity through a trading pair HBD-USDC, and started it with 100,000 USD of Liquidity. Now the challenge is for it to grow so it can attract large or whale size investors. He estimates we need 5 million in liquidity to attract whales. So he is providing incentives for the almost 9 million HBD in Hive wallets collecting 20% APR to move their Hive from their wallets to the HBD-USDC trading pair on Polygon 40% APR. So if HBD owners move their HBD and provide liquidity they can earn more the twice the APR in Hive wallets.
But we still need additional liquidity, as the Hive locked in wallets isn’t moving fast.
Then @smooth the dev on the Hive Stabilizer program wrote in a comment on a @khaleelkazi post, that additional liquidity is available on the Hive Internal Market.
*** What internal market?***
Yes, Hive has an internal market, if you hoover your cursor over your Hive or HBD in your wallet you find a drop down menu which lists Market.
Hoover Here
This Menu drops down
If you click it, this Market Appears
Internal Hive Market
- So this is another source of Hive Backed Dollars, to be purchased with Hive.
- So if your Hive rich, and HBD poor, you can come here and buy HBD.
- I know people have said that other places to buy HBD limit you to buy orders of 100 to avoid moving the price 5-10%, which is very significant, as it is one half of your expected yearly profit.
- In this internal market orders of 1200 are not unusual, and I have seen orders of 5000 HBD. So this provides 10 to 50 times as much HBD at prices close to 0.99 to 1.05, well with in the range of profitability.
But that’s not all HBD printing is tied to market price!
Another important thing @smooth said was that if people pay a Premium for HBD, defined as >1.01 the HBD Stabilizer kicks in prints more HBD. And it can print up to 160,000 extra HBD a day!
I think that’s amazing!
The code
If you look at the code in GitHub for stabilizer you see that something magical happens at 1.01:
Below a closer look
The explanation
- I am not a dev so I defer to @smooth who appears to explain that overvaluation of HBD triggers Printing of HBD
- And this occurs at or around 1.05, but after the initial trigger 1.001 is an overvaluation. So investors who buy at 1.05 make it possible for other investors to buy at 1.001 that’s amazing.
- Comments by @smooth explaining this:
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Last words
It appears that we have the power to help our project become more widely know, and increase buying pressure on Hive, HBD and increase notoriety for Hive. We also have a real chance to get Whale size investors here by providing Liquidity to the HBD-USDC trading pair on SushiSwap on Polygon. Plus we earn a very nice APR in Polycub by depositing the tokens on Polycub.
Those of us who are adept enough to use the internal market, thus understand how it’s order book works and the competitive bidding process involved can buy large amounts of HBD there for very little over the peg of 1.00 dollars.
The act of buying HBD at prices around 1.05 will trigger the HBD printing, which can provide additional HBD liquidity of up to 160,000 additional HBD per day. This is certainly significant amounts of additional Liquidity.
Thanks to @smooth , the HBD Stabilizer project, @khaleelkazi and @taskmaster4450 for asking and answering questions, providing information and helping the investors how they can help HBD and the HBD-USDC pool be successful.
The future looks very bright, the tokens are at low prices suggesting significant upside is possible. I am both excited and bullish. Gentlemen let the Lion Roar.
@shortsegments
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