The major news about the Hive ecosystem, and everybody heard about it, is the increase of interest on HBD in savings from 12% to 20%.
As usual, the Leofinance team didn't fail to surprise us with an even more interesting news: The launch of pHBD/USDC Liquidity Pool on polycub!
What is the new stable pair pool? What's it's aim and why we should invest in? Will this pool sustain a higher APR on the long run?
HBD Saving
Putting HBD into Saving is a safe solution for an investor who wants to put his money to sleep and collect passive income monthly with no risks involved.
- 20% APR sound lacking in the DEFI era but a Big Deal when it comes to Stable Coins. Just to name an example: Curve.fi known for the largest TVL in term of stable coins, offers only 2% APR on stable coins pools (DAI/USDC/USDT Pool)
- Security: staking on Hive chain is safer than staking on another chain. Moreover, in case of a hack, saved HBD can't be withdrawn instantly and your funds will remain safe in case your account is recovered within 3 days of unlocking.
pHBD/USDC: more than just a higher APR
NB: pHBD is the Polygon wrapped version of HBD on hive ecosystem. Here's a guide on how to Wrap HBD to pHBD from Leofinance: How to wrap HBD to pHBD
As the title says, this pool provides 3x more APR than HBD saving, currently on 58% APR with $230,000 in liquidity provided in less than a day from the pool launch!
Regarding the rewards, here are some specifics regarding this pair:
- Rewards are paid in PolyCub, in the likehood of pCub going up, the APR will follow up (assuming liquidity stays the same)
- 50% Penalty if rewards are claimed before 90 days. A fan of hypercompounding? Pay the penalty and you still get more than 20% (29%) but with the price so low ATM, if the price recovers to it's opening price at $1, you'll be 3x your profits turning it into around 180% APR
- The team assuring that the APY will be maintained above 30%:
HBD isn't totally stable as it's price can vary from $0.90 to $1.10, with the pool and the influx of an ever growing liquidity:
- HBD will be more stable, the very point of opening a pool is to stabilize the token's price
- More arbitrage opportunities:
- If HBD at $0.90, you can exchange USDC to HBD and vice versa
- Great arbitrage example can be found on Edicted post
- With a tightly $1 pegged USDC and arbitrage, HBD will quickly recover to it's original value that if there is enough liquidity to support it!
- No more Impermanent Loss
Keeping HBD stable is one of the reasons why LeoFinance wants to create a $5,000,000 liquidity Pool
and to solve HBD illiquidity, if we want LeoFinance and Hive to reach outside and DEFI whales, this problem must be solved:
The problem is slippage, whales make $10k worth in a single transaction and will be extremely turned off when facing a 8% slippage:
Conclusion
If everything goes as planned, will PolyCub be a leading platform on Stable Coins? Will HBD gain mass adoption and become a major stable coin like USDC, UST or DAI? Can PolyCub reach $5M in liquidity? Only the future (and our efforts) will answer those questions.
Also, take part in LeoFinance contest by using the #phbd tag for a chance to win 100 HBD!
