GM fellow hivers! And hello to you dear reader who for some magic reason found this blogpost while searching for ways to make money online without any investment.
My name is Solymi and I am a film maker and photographer, a director and actor in real life. But in the leoverse and in the web3 space of Hive I am a gamer and an investor noob. I entered the Hive ecosystem in January 2021 when I was looking for ways to earn money on the internet. I found hive and decided to give it a try. And I stayed. I bought Hive, I bought into Splinterlands I started playing Rising Star I started sharing my photography and i started earning rewards paid in HBD and HIVE.
It has been a while since I last posted a portfolio update, and I promise I will do that, but this post has a different purpose...
In this post I am going to talk about why it is important to provide liquidity in HBD, for all that want HIVE to get more adoption and attention! If you are invested in $Hive and $Leo and want these projects to succeed and get even more new users, you can help by providing liquidity for HBD on POLYCUB.
image made in Canva using @nioberojas original image from this post in the hive stock images community @hive-118554 and pictures to be found on https://polycub.com/
DISCLAIMER
non of this should be taken as any form of investment advice! I am a film maker, I am not a financial expert. Do your own research and and do not invest funds you can not afford to lose! This article is depecting my own POV! AGAIN: I am a random bloke on the internet writing about his experience in the DEFI space! NFA! DYOR
this blogpost contains affiliate links and I say thank you if you sign up with any of these services.
HBD is the algorythmic stablecoin of the HIVE ecosystem and if you want to know more about what HBD is and how it works you can check out this POST by @crypto-guides
For those who indulge in the study of cryptocurrency, you will know that stablecoins are all the rage. While some might believe this is a passing fad, kind of like the ICO craze, I can assure you this is not the case. In fact, the entire future of crypto-economics is going to be built, to a great degree, on stable coins.
@taskmaster4450le talks about HBD in his post: The HBD (pHBD) Train Keeps Rolling Forward
Other examples of stable coins are USDT on the Ethereum blockchain, or USDC on the polygon network. You might know BUSD based on the Binance Smart Chain or $UST on the Anchor protocol.
A stable coin is pegged to a certain asset in the real world in this case the US dollar.
However HBD is a bit different since it always represents 1$ worth of HIVE.
For those who have been on hive for a while you know what HBD is, and you also might have noticed that the interest on HBD in your savings account has risen to a juicy 20%
This makes it really sexy to just move some of your hive holdings into HBD to earn that 20% as a passive income.
You also might know how hard it is to get your hands on bigger amounts of HBD.
One can only buy a few hundred HBD without having a huge price impact of 5-10%
As Taskmaster stated "...we are going to need hundreds of billions of HBD to be legitimate operators."
So if a whale wanted to enter the DEFI space via HBD to just let those 20% interest roll on a stable coin they would be facing a huge downside on their investment right away. Imagine having to pay 5-10% slippage for entering the space with 100k. Would you make an investment like that?
You can use the internal exchange of hive to get up to 160k per day at a 1% premium but in this case you will have to have hive in your hive engine wallet. Making it harder for bigger whales who have not yet a hive account to get in.
And since we all want our ecosystem, to grow it is necessary to get in big money from outside.
That is why it is so important to get that liquidity out there on the polygon network. And the leofinance team is working to get that liquidity to 5 million in a short period of time.
So instead the 20% APR offered on HBD savings one could go the #polycub way and provide liquidity for HBD paired with another stablecoin USDC and earn over 50% APR (54% at the time of writing).
You can see I am a small time liquidity provider but this is just seconds after I staked my liquidity position tokens. And you already can see the machinery kicking in. FYI this is about 200 pHBD and 200 USDC so you really see that this is just a small amount here.
The overall liquidity in this pool is now over 250k and it has been growing steadily since the inception of the pool.
The APR offered for staking 2 stable coins is really exceptional. Of course this will come down and already has been decreasing since the start. Initially it was over 60% APR!!!
If we want to be big players in the crypto space we have to start building ways for the big money to enter our ecosystem without having to lose on slippage.
And as a holder of many hive assets I really wish for our ecosystem to thrive even more.
If you want to know how you can wrap your HBD to pHBD just head over to this POST by @khaleelkazi where he provides a step by step tutorial for everyone who wants to get involved.
If we have a look around we see that Hive is still pretty small compared to other chains and if we want widespread adoption we need new players in the game every day. Lets make it easier for all to enter by helping to build this liquidity pool to the biggest available!
As a nice side effect you will earn $polycub which then can be staked into xpolycub that gives you another over 30% APR! 37% to be exact.
You can see where I am getting to. You can earn by staking stable coins and use the proceeds to further grow your bags if you wish to do so.
You can of course dump your rewards on the market and sell them for more pHBD and USDC to grow your liquidity position, or you can simply turn your polycub to pLEO and bring it back to HIVE to grow your LEO power.
There is really endless possibilities and it is nearly risk free. (RISK IS ALWAYS THERE DYOR!!)
I am staking 2 stablecoins and not some volatile asset that can jump 10-30% in one day. And I get over 50% of interest for it. Try to get that on your savings account at your local bank...
Leo Finance CTA tweet:
If you have a Metamask wallet you can help the Leofinance team to get pHBD listed on Debank go here to vote! https://debank.com/vote/12847
Let the $HBD listings begin! #Hive community we need your help to vote for $pHBD to be listed on @DeBankDeFi https://t.co/fjsgO3mCZC pic.twitter.com/xQRoiWXIda
— LeoFinance (#pHBD) (@FinanceLeo) April 17, 2022
Even if you are not using any of these services you can help the entire HIVE ecosystem by leaving your vote!
Thanks everyone for reading!
cheers
Solymi
