Tell Ya Kids, Tell Ya Wife, pHBD is Changin Everything Out Here
frens, yesterday something incredible happened with our beloved Hive Backed Dollar... The LeoFinance team deployed a wrapped version on Polygon and leveled up HBD!
Why pHBD is a BIG deal.
Yesterday, before the news even broke, I was writing a guide on how to use the new pHBD-USDC farm on PolyCUB. One of the perks of being in the LeoFinance Discord is sometimes little gems get dropped in there. It actually happens a lot. Plus, that's where the weekly AMA happens every Tuesday. Ok, back to the subject at hand here.
When I wrote that guide yesterday, I literally kept it straight to the power. How to bridge HBD to Polygon and how to enter the new farm. Today - I wanna talk about why it's so important that we do our part with this new farm by providing liquidity. HBD is one of the only algorithmic stable coins that has truly stood the test of time. It's the native stable coin on the Hive blockchain pegged at roughly $1.
HBD is different from most other stable coins you might be familiar with like USDC, USDT, and BUSD. Those stable coins are pegged to $1 and backed (supposedly) by cash reserves held in escrow. HBD is backed instead by $1 worth of HIVE, which makes it a little less pegged, but it will always be close to $1. Check out @crypto-guides post What are Hive Backed Dollars? for more details on how it works.
The true potential of HBD has yet to be unlocked due to one massive problem: liquidity. There's just simply not enough of it available on the market to act as a true stable coin that people can use on a daily basis. There's not even enough available to easily move around $100,000 worth of it, which to me is a lot of money. To some people that do massive DeFi yield farming, that's peanuts and if we want that kind of capital coming in... We need liquidity.
This is why pHBD is such a huge deal. Bridging our baby HBD over to Polygon has truly unlocked it's ability to scale and become a more recognized stable coin. If you ask the average person in crypto if they've ever heard of Hive or HBD, the answer is most likely going to be no. This new liquidity pool on Polygon could help change that narrative.
Looking at the farms on PolyCUB, you can see that the pHBD-USDC stable coin liquidity pair is paying out 57.77% APR right now. That's over 70% if you compound it daily. There is literally no other DeFi protocol offering that kind of yield on stable coins. This makes it very attractive to outside capital, which could lead a lot of value back into Hive.
pHBD is going to bring a lot of attention to the native HBD token as well. Once whales realize that they can earn 20% APR on a single stable coin by staking HBD in savings, we could see a massive influx of capital to the Hive ecosystem. More money coming into Hive will do a lot of things. I think a major misconception is that Hive is just a blogging platform, but it is a lot more than that.
Hive's exosystem (PolyCUB included) has evolved into a social DeFi hub offering some of the most attractive yields out there. There's literally more ways to earn via this ecosystem than there are in any other. We have a chance here to unlock the mainstream potential of Hive, but we need to help build massive liquidity for HBD for that to happen.
Despite whether you believe it or not, but we are still very early here in the Hive and LeoFinance world. We're on the ground floor. We have the potential to grow ourselves along with our portfolios every single day just by being here. Hive is an incredibly powerful blockchain and the world needs to hear about it. It's time to move some of that extra capital into the pHBD-USDC farm and do our part to build this liquidity pool so whales can come do their thing.
Thanks for reading! Much love.
Links 'n Shit
|Play to Earn||Read emails, Earn Crypto||Get free crypto every day||Get a WAX wallet|
Posted Using LeoFinance Beta