Leofinance announces huge news stablecoin pair paying 40% APR : HBD-USDC !

Leofinance Monumental Announcement

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Khaleel announced yesterday that the Polycub road map now contains the stable coin pair HBD-USDC! And an APR of 40%.

This is hugely bullish because…

  • This is massively bullish as similar moves by Terra Luna led to the native token Luna mooning from 1$ to 100$.
  • This creates a clear path from Hive to DeFi on Polygon.
  • He also announced a wrap service Native HBD to Polycub HBD called pHBD.
  • Then he announced the APR of 40%.
  • In case you don’t invest in Stable coins, the usual rate is 5-12%, so 40% is a massive premium over the normal rates.

This is a huge attraction for large investors.

  • Large investors in crypto, and most asset classes become very conservative once they make it big.
  • After all, after your investments earn you your first million the last thing you want to do is loss half of it or two thirds of it on a volatile token.
  • Risk aversion in cryptocurrency means stable coins.
  • Specifically, stable coin pairs or single token stable coin vaults.
  • Usually Stable coin vaults paying 4-8%, low compared to most of DeFi, but much higher then bank savings rates of 0.25% APR.
  • However stable coin liquidity pairs pay higher 8-12% APR.
  • So when Leofinance creator Khaleel announces a stable coin Liquidity Pair paying 40% He suddenly has a lot of peoples full attention.

What’s so special about stable coin liquidity pairs?

  • One word, impermanent loss.
  • Okay two words, it seems my brain thinks these two words are chained together.
  • So in a stable coin pairing, impermanent loss is practically non-existent.
  • So you won’t experience the huge paper losses you encounter when your token bought at 4 dollars crashes too one dollar.
  • ‘Which is something which happens a lot.

Stable coin pairs allow you to have the best of two worlds.

  • They pay higher then the usual single token vault…
  • and they don’t have the risk of impermanent loss that a usual liquidity pair does.
  • It’s like the American saying of having your cake and eating it too.
  • ‘It’s new, extremely disruptive and everyone on Hive will have a seat at the table of the bountiful feast.

Last words..

  • I keep ending these posts with the words Khal let the Lion Roar
  • I guess he heard me and he did let the Lion roar…
  • ..And it’s deafening :)
@shortsegments

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I am eager to see how this plays out. 40% APR? that is insane for a stable coin. will this be sustainable? Anyways, time will tell. But I am excited considering that this initiative if it works, will have a positive impact on hive.

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Yes it’s a crazy APR!
It’s like a Marketing majors dream come true though!
LOL! Make my product stand out!
Your question on sustainability is a good one.
I can already see that more research is needed to fully understand this new pair.

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It's very good for HBD. Pairing with USDC makes it bullish and stability. The APR is awesome too. And no worries about the impermanent loss. Rates much better than other stable coins !

!PIZZA

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Yes, I agree, pairing with USDC, an up and coming Star is a great idea!
And they should definitely play the no impermanent loss song a few times, so people carry the thought in their head.

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40% on a stable coin is massive. It simply blows dividend stocks, interest in a bank and inflation!

I only see defi and stable coins in these markets becoming larger with everything going on and it's going to fuel one of the biggest injections of money ever.

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Very good points!
These APRs are bigger then those three, and should attract some of those investment dollars our way.
This is definitely a move to grow the community by adding new blood!

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Dam here I am thinking 20% is about the top it can go and here we are 40% 😂.

Not sure 40% is very sustainable

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Not sure 40% is very sustainable

Hmmm good question. I think it must be explained in the AMA, I will give it a listen. I like the new marketing habit of selecting questions from the AMA which are important, I think there’s one on this.

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Can you a drop a link into the announcement?
I can't find any reference anywhere to the 40% APR

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Not sure he knows the exact APR at this point. Perhaps it is a "teaser".

Where is it announced?

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If the APR is just 40% then I don't really see too many people investing because of the early harvest fees. Locking up your interest for 90 days isn't exactly what I think most investors would do.

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Hmmmm good question.

I guess that makes me dig into more.
I need to find out if the 50% rewards penalty will apply to this HBD-USDC trading pair? Or will it be exempt.

Then I guess you also make me ask this question:
Are people who invest in stable coins the same as the yield farmers who chase high APRs or are they people looking for a safe spot to store their yield farming gains?

These are good questions we gain from interacting and seeing others point of view.
Thanks!

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I asked this Khal and he said anything besides the xPolyCUB vault will have the 50% early harvest penalty.

I think that the most stable coin farmers are there to store their money and get yield. However, they won't reject the highest yield they can get. Some might prefer to compound their gains back into the pool to earn even more and this early harvest penalty will definitely affect their decisions.

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And @shortsegments - Personally I think any advertisements pushing the 40% APY NEEDS to mention that 3 month lock VERY early on and in bold. For me having a 3 month lock means I'll put something in, but not much. Three months is a long long time in DEFI!

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The yield is paid in pCUB and as I understand it, that p CUB will be subject to the 50% cut if withdrawn prior to 90 days.

I do think this is going to cause some people to go meh. However, lets say one takes their yield before the 90 days. They will still be getting 20% overall, which is not too shabby on a stable coin pair.

I also have a feeling that a fair portion of the large xPolyCUB holders are going to vote to allocate relatively high yields to the pHBD-USDC pool when given a chance because that is in the best interest of PolyCUB an the entire HIVE system in general. Almost all of the big xPolyCUB stakers are CUB/LEO/HIVE diamond hands, so I don't know why they wouldn't. Selfish interest and all that ;-)

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Another insane [email protected] keep surprising people.never expecting something of this magnitude.there is no way this won't attract more investors.anothee record Apr broken.

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Yes, I think your right. There’s little chance that the yield aggregators won’t point investors in our direction.
I hope all who come look at the whole ecosystem and invest in Leo, Cub and Hive too.

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