On the decentralized Web3 Blog of Hive, we are discussing the current APR of HBD and the necessity of lowering the APR or increasing the supply, etc. I am happy to see that everyone shares his/her own ideas to add value to the ecosystem. These discussions are pretty fruitful. I'm okay with both options, whatever the community decides on.
I would like to highlight another issue: the isolation of HBD as a stablecoin and the consequences of it.
In the current mechanism, HBD is a stablecoin that locks some HIVE coin inside to be released. As long as HIVE tokens are converted into the stablecoin, the system works perfectly fine. However, when someone wants to use his/her stablecoin to buy other cheap cryptocurrencies to trade, eventually:
1- HBD is converted into HIVE
2- HIVE is sent to a centralized exchange to be converted into a stablecoin
3- Stablecoin is used to buy X,Y,Z tokens
This process, unfortunately, creates a constant sell-pressure on HIVE in the centralized exchanges where the coin is listed. However, when we think about DAI as a stablecoin, there is no need to sell Ethereum on centralized exchanges, you can use DAI pair for that purpose.
I believe this is the way that we need our stablecoin, HBD, to get mass-adoption in the world of crypto. We need centralized listing wether we like them or not. The centralized exchanges are gates to new crypto investors. We cannot expect a newbie to use Pancake, Uniswap or cross-chain bridges for a single crypto transaction.
The use of LEO bridge actually set HBD stable coin free. Now I have some HBDs on Polygon and Binance Smart Chain which locks HIVE token hive coin in itself and now it is not on Hive. What we need we need a stable coin which is used by people which is not only locked on savings 20% interest rate for HPD
Debut Plan for HBD on CEXs
We may ask centralized exchanges to list HBD as an interest-generating stable coin alternative. As you know, we have lots of different stable coins that give up to 20% like HBD does. Actually, not all of them are top or very popular stablecoins. Rather, they are listed on centralized exchanges and they own their trading pairs.
Our initial operation might be paid listing for HBD on "popular" exchanges. The debut of HBD will be an interest giving stablecoin alternative. Next, our stablecoin will have a couple of pairs in the initial phase:
BTC/HBD, ETH/HBD, XRP/HBD, USDT/HBD, HIVE/HBD etc.
As people start to use HBD, by tracking the volume and adoption, we can increase the number of pairs. Meanwhile, We can also work with a Market Maker company for HBD to be adopted as a stablecoin alternative in its early times.
The interest rate on the centralized exchange will be 17% at most while it is 20% on Hive. The reason is that anyone who want to hold their funds on a centralized exchange can use HBD instantly as long as they trust the centralized service provider. Hive ecosystem, on the other hand, provides 20% APR for 3 days of locking period.
2 great options according to personal preferences. When HBD is acknowledged as a stablecoin and the forms of HBD, such as pHBD, bHBD, get adopted, we can solve the problem of isolation in the cross-chain crypto ecosystem. Also, each HBD locks some HIVE. The more HBD used for its stablecoin feature, the fewer HIVE will be around.
Personally, I believe in the positive effects of HBD's debut on centralized exchanges with a strong plan and collaboration. It is worth allocating some funds for that.
What do you think about it? Share with us below.
Hive On ✌🏼