The advantages to staking HBD & SPS on Leofinance DeFi versus staking in your Hive wallet or on Splinterlands.

I realized while listening to the Leofinance AMA that there are advantages to staking your Hive Backed Dollars, called HBD and SplinterShards or SPS, in the Leofinance DeFi Projects.

Those leofinance DeFi places are the SPS-BNB Farm on Cubfinance and the HBD-USDC Liquidity Pool on PolyCub.
These two Leofinance DeFi Projects are the projects of Khaleel Kazi @khaleelkazi, an accomplished software coder, and Hive Community member.
@khaleelkazi founded the Steemleo Community on Steem and migrated over to Hive as the Leofinance Community when Hive was born.
Leofinance is a community focused on cryoptocurrency and finance, which has over 20,000 registered members.
These projects are Certik Certified, a software code inspection done by one of the most prestigious names in cryptocurrency DeFi project vulnerability inspection.
I have three reasons or advantages to staking in Cubfinance and PolyCub, versus staking on Spinterlands or in your Hive wallet.

Those advantages include:

Liquidity
Higher APR and higher ROI
Safety?

Advantage Number one Liquidity

In this definition Liquidity I mean how fast you can access your money to spend or invest.
You make money staking, but you have less liquid access to your capitol (SPS and HBD)as it is tied up on these native applications for 4 days to 4 weeks.

SPS 4 weeks

Staking on Splinterlands means unstaking your tokens takes 4 weeks, as you get only 25% of your staked SPS each week.
Staking on Splinterlands pays 48%

HBD 4 days

Staking inside the Hive Wallet via your Savings is great, but you can't get your HBD out until the 4th day after you initiate a withdrawal.

Advantage Number Two Higher APR

In this definition Higher APR I mean how your Annual Percentage Rate you use to calculate your ROI or Return On Investment.
You make a decent APR staking, but its less then the APR Farming.

SPS 58% APR

Staking on Splinterlands means earning 58% APR
Staking on the Cubfinance Farm pays 68% APR as of this writing.

HBD 20%

Staking your HBD inside you Hive Savings Account in your Hive wallet pays 20% APR.
Staking inside PolyCub farm HBD-USDC pair payes 28%-40% APR.

Safety

I think most people feel like HBD is safest in your wallet, your Hive wallet, inside your Savings Account, protected by your private keys.
But as the Terra Luna disaster involving the stablecoin UST showed, you could lose the value of your tokens and it's just as bad as losing the tokens.
Those people had their tokens staked and they weren't watching the prices.
When the price dropped precipitously their value evaporated before they could even check their wallets, and soon their tokens were worthless in their wallet.
If you have your tokens staked on Splinterlands you can't unstake 100% of your tokens for 28 days.
If you have your HBD staked on Hive you can't access them until the 4th day.
So if there was a attack on Hive or Splinterlands like the one on UST and Terraluna you would be able to withdrawal your SPS for 7 days, and your HBD for 4 days.
All you could do is watch the price drop and cry.
But if your were invested in a Farm on Cubfinance or PolyCub you could pull your funds out of the pool in minutes and sell it to recover your capitol.

What if you don't know enough about DeFi to invest in these projects, or your to busy? You can join the other Hive Community members investors in a pool called EasyDefi.

Easy Defi has over 100 Hive community members who invest in decentralized finance or DeFi the EasyDefi Two Step way.
First Step: To participate in the pool through Easy DeFi you send 250 Leo minimum or 100 Hive minimum to @easydefi.
Second Step: And then EasyDefi invests the tokens in the Leofinance DeCentralized Project Cubfinance or Polycub, and sends you the earnings to your Leo wallet.

Keep it Simple with EasyDefi

Easydef does all the work and sends you the earnings to your Leo wallet.
Its called the EasyDefi Two Step!

Last Words

I have explained why I feel that there are advantages to staking in Farms on Leofinance DeFi Projects Cubfinance and PolyCub, versus staking on Spinterlands and in your Hive wallet in a Savings Account.
Those advantages include better liquidity, greater earnings and safety against the type of attack which destroyed TerraLuna UST.
Due to a feature which allows you to withdrawal and sell your assets right away..
And if you don't know how to invest in DeFi or don't have time to invest in DeFi, there is @easydefi and the EasyDefi Two Step. Read more about EasyDefi here.

#####@shortsegments

Posted Using LeoFinance ^Beta

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dwayne16 2 years ago

I believe both defi and native applications have it advantage and risk that comes with it. Measure your risks and do what favours you

0.09 VYB

1 vote

shortsegments 2 years ago

Agreed

Said another way...DYOR

DYOR

Do your own research, and make sure the risk of your investments matches your risk tolerance.

:)

0.00 VYB

chinito 2 years ago

That's an awesome pic of dragons! yea, both look like 2 great things to invest in. what is HBD again?? :P

Thank you.
HBD is Hive Back Dollar, the Hive blockchain stablecoin, and will always buy you a dollars worth of Hive.

2 votes

jfang003 2 years ago

You also need to consider the disadvantages of doing so and that the pools rely on the price of PolyCUB. At the same time, there are early harvest penalties and IL that you can get. So I think it's a trade-off and I prefer the stability of staking on the platform itself.

0.17 VYB

True

You are paid in Polycub, not Hive, so there is a mathamatical comparison to be made between 20% APR in 50 cent Hive, veresus 28-40% APR in 20 cent Polycub.
But fortunately for stablecoin pairs, such as HBD-USDC, IL is practically non-existent.

The advantages of staking HBD and SPS on Leofinance DeFi projects versus staking in native applications