HBD Revolution and the Future of Hive
It has been the dream of every Hive user and investor to see Hive gain mass adoption and, finally it is happening in 2022 with the huge developments around Hive-backed Dollars (HBD). The journey to making HBD a well sought-for stablecoin all started when Hive witnesses reached consensus to increase the HBD savings interest rate to 20%. The development was given a boost by LeoFinance's creation of a wrapped version of HBD on Polygon network as pHBD with the aim of providing deep liquidity for HBD traded against USDC.
Hive Based Dollars (HBD) is the first "useable" token earned by any Hive user as payouts of posts usually come as $HBD and Hive Power (HP). It takes the net 13 weeks to liquidate Hive while the paid out HBD is instantly useable foe several purpose from exchange to other crypto to purchasing of goods like it's happening on @Hivelist store.
In the hall of fame of also-stablecoins, HBD, inarguably is the longest-standing coupled with its host being Hive - one of the most powerful, scalable and fast blockchain. Despite the uniqueness of HBD, its adoption over the years suffered setbacks due to low liquidity in exchanges.
At this point, with the deep of increased HBD savings to 20% and provision of deep liquidity for pHBD on PolyCUB, all is set for whale crypto investors to buy into HBD and that means a lot for the future of Hive. Without mincing words, we can say that these developments is pushing Hive towards mass adoption.
Four (4) Reasons why every Hive User should Stake pHBD-USDC
In this post, I attempt to explain Four (4) reasons why every Hive User should stake pHBD-USDC as it is helping HIVE and HBD to gain mass adoption in the CryptoVerse. The four reasons I identified are as follows:
- pHBD is 1:1 backed by HBD
- pHBD gives 1-2% arbitrage profit over HBD
- pHBD LP bonus is 2.5x HBD savings interest
- pHBD pool has deep liquidity than other HBD exchanges.
1. pHBD is 1:1 backed by HBD
This post by @leofinance gave a detailed explanation of the 1:1 backing of pHBD by HBD on Hive and why investors should not fret venturing into it.
Hive-Backed Dollars (HBD) is an algorithmic stablecoin on the Hive blockchain. Essentially, it serves as a debt instrument that is backed by HIVE. At any time, HBD can be used to redeem HIVE and HIVE can be used to redeem HBD. source
An explanation of that post shows that wrapping HBD into pHBD poses quite a lesser risk than insinuated since the oracle account for pHBD (@p-hbd) holds the HBD in a cold wallet with only 50% of it in Hive savings for 20% while the remaining 50% is available for daily pHBD unwrapping to HBD.
One can verify the supply of HBD to pHBD on the Hive and Polygon blockchains via the following links:Links you'll need:
The true value of your wrapped HBD is held on Hive and so ascertains its safety.
2. pHBD gives 1-2% arbitrage profit over HBD
Yesterday, I made attempts to explain the arbitrage opportunities that PolyCUB infrastructure brings to HBD and potentially to other Hive communities and their tokens. Every trader knows the value of arbitrage profits and it cannot be over emphasized.
since launching, pHBD has maintained its peg to $1 at all times. Hovering temporarily to $1.02 until it is instantly arbitraged back down to $1. Since pHBD can always be redeemed to/from HBD instantaneously, arbitrage will always keep the value of pHBD and HBD equal. source
A look-up the polygon-hbd price and Hive dollar price on Coingecko would reveal a deep profit from arbitrage trading. The pHBD price has constantly stayed over $1 and that serves about 1-2% profit if unwrapped to HBD on Hive. That is a wealth spot staying un-utilized.
Where there is the possibility of trading 100k buying HBD on Hive, wrap it to pHBD and selling it on PolyCUB, one has a chance of making $1000m to $2000 from the arbitrage profit.
3. pHBD LP bonus is 2.5x HBD savings interest
Saving HBD on Hive blockchain affords you a 20% interest over a year. This when compared to over 43% APR and over 50% APY that is drawable from Stake pHBD-USDC, shows a 2.5x better returns.
Why are we investing in crypto if not for the profit? Everyone needs the profit. This is just the reward for capital. Every capital is expected to generate additional revenue. This is what staking Staking pHBD-USDC avails every investor. It helps you compound your Hive earnings into a forever Passive Income source.
4. pHBD pool has deep liquidity than other HBD exchanges
As at today, one of the exchanges where as much as $150k HBD can be purchased is on the Paraswap linked to the Polygon network where pHBD is pooled against USDC. Every high budget investor will know the value of liquidity which makes entry/exit from a token easier and less risky. pHBD-USDC pool on PolyCUB is the best market for HBD as far as liquidity is concerned and in the coming weeks, the size of the pool would have grown to $1 million and even more.
At $298k, the pHBD-USDC pool has gained a tremendous support in less than 10 days. That is a massive boost for Hive blockchain as a whole and the best way to facilitate this boost is to provide liquidity to the pHBD-USDC pool on PolyCUB.
What are you waiting for?
If you're earning HBD on Hive and not providing liquidity to pHBD on PolyCUB, then you're wrong. While this isn't an investment advise, the above Four (4) points would have convinced you that it is a great deal to stake pHBD-USDC. It will help build a solid market for HBD while you profit the more.
Learn more about POLYCUB - the Best Sustainable DeFi?
These posts would be of benefit in explaining more on the DeFi 2.0 pioneered in PolyCUB and how it plays out as a game-changer in the DeFi space, optimizing yield and serving long term decent profits to investors. They are:
- Why Would Anyone Buy POLYCUB 1 Year From Now?
- Introducing the PolyCUB Roadmap | xPOLYCUB, Bonding and Collateralized Lending
- PolyCUB | Emissions "Halvening" In 2 Hours and the Future of Sustainable DeFi Through Utility AND Scarcity
- Bitcoin Moguls now know and demand PolyCUB
Make your money work for you on POLYCUB - PolyCUB is the best DeFi lending platform in 2022
Are you yet a part of this fast evolving change in the cryptocurrency industry. The earlier the better!
What is LeoFinance?
LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: LeoFinance.io allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards.
Join Hive Here and start a new work!
What is Hive?
Hive is an innovative and forward-looking decentralized blockchain and ecosystem, designed to scale with widespread adoption of the currency and platforms in mind. By combining the lightning-fast processing times and fee-less transactions, Hive is positioned to become one of the leading Web3 blockchains used by people around the world. source
About me...
I am a called teacher, a serial entrepreneur and a Graduate of Agricultural Engineering. Nigeria is my root and a place full of opportunities. I dropped out of a Master's Degree program due to funds, yet I do not regret growing the courage to start my business from the scratch. Today, I've built layers of Businesses on the Hive blockchain in terms of Curation and it's a sustainable passive way of earning crypto while learning.
I am your favourite Hive Tribes Promoter and Curapreneur!
I am @Uyobong.
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