My hunt for HBD started right when the witnesses announced that the fixed-interest rate of HBD was being raised from 12% to 20%.
I already knew that we were developing pHBD for PolyCUB but when this was announced, it lit a fire underneath us. As someone who holds 1M+ HIVE, I truly want to see this blockchain flourish. Along with that LeoFinance is built on Hive and what's good for Hive is good for LEO!
ICYMI: pHBD is a wrapped version of HBD on the Polygon Network. You can seamlessly wrap and unwrap HBD using https://wleo.io/hbd
note: if you're looking for a super easy, 3 step tutorial on how to do this, check out this video!
Why Everyone on Hive Has an Incentive to Provide pHBD-USDC Liquidity
If you're on Hive, you have a deep incentive to provide liquidity on pHBD-USDC. Why? 2 main reasons:
- pHBD-USDC is vital to the adoption of HBD
- pHBD-USDC pays a higher APY than native HBD staking
pHBD-USDC is vital to the adoption of HBD
I run in a lot of different DeFi circles these days. I've been talking to them lately about the MASSIVE opportunity that is HBD.
With the HBD savings rate at 20%, these whales are highly motivated to get their hands on HBD and deposit it on the Hive blockchain to earn a 20% fixed interest yield.
Many of these whales are currently staked on Anchor using the UST (Terra's Stabelcoin) token to earn 20% fixed yield.
This is a ridiculously important opportunity. HBD is one of the oldest stablecoins in the crypto industry and now it is paying a competitive stablecoin yield to every other platform - including the fastest growing stablecoin on the planet (UST).
Why Aren't the Whales Buying?
But ser, why aren't those whales buying and staking a ton of HBD?
They can't.
Literally - they can't. There is no onramp and offramp liquidity for HBD. The best place to buy it 2 days ago was the internal market where you had to buy in a few hundred dollar increments very quickly or use a bot to try and get a decent price.
There is literally no HBD liquidity out there right now.
I managed to do an OTC deal to get 100k HBD at a 2% premium. This was the best HBD liquidity source I was able to find and I found it on Twitter.
As of ~24 hours ago, the best place to buy HBD is now on PolyCUB.com/farms using the pHBD token. You can swap into pHBD using any Polygon-based asset on platforms like Paraswap.
Just 24 hours after launching, pHBD-USDC already has $230k in liquidity and it is growing every minute. We need this liquidity pool to reach $5M.
I believe that a $5M liquidity pool is the potential critical mass to onboard a bunch of DeFi whales into the HBD stablecoin and get them to either
- Provide HBD as pHBD-USDC liquidity and further deepen the pool
- Unwrap pHBD they buy into HBD and stake on-chain for 20% fixed interest yield
pHBD-USDC pays a higher APY than native HBD staking
While I love the Hive community and know that many of us can rally behind a cause just for the sole reason of it being good for Hive, I also know that personal incentives matter a lot.
In the world of DeFi, incentives are everything. Our goal is to make PolyCUB to HBD what Anchor is to UST. PolyCUB can be the premier platform to stake HBD and earn high yield while people who want more conservative, native HBD yield can stake HBD directly on-chain.
Right now, POLYCUB is paying 58% APR (or over 75% APY) for anyone staking pHBD-USDC liquidity in the Vault.
This APR is likely to drop and hover around 30% APR. We plan to keep updating the Multiplier on the pHBD-USDC vault to maintain a 30% APR.
There are a couple reasons for this:
- pHBD-USDC generates massive revenue for PolyCUB's PoL through wrapping fees and built-in arb fees that are collected while PolyCUB's arb bot maintains the $1 peg for pHBD
- xPOLYCUB governance is about to launch and most xPOLYCUB whales are Hive/HBD whales providing liquidity to this vault. They'll be able to vote more yield into the pHBD-USDC vault
- It's great for Hive and I am a Hive whale. What's good for Hive is good for LeoFinance and the growth of our ecosystem within Hive. We'll always aim to support and build this ecosystem
So... Will you help us? Will you help us build the largest source of liquidity for HBD so we can onboard DeFi whales who want 20% stablecoin yield with no hassle?
All you have to do is:
- Wrap HBD into pHBD
- Provide pHBD - USDC liquidity on https://polycub.com/farms
- Earn 58% APR for doing so + know that you're one of the first people to seed deep liquidity for HBD and that means that you are playing a vital role in building the Hive ecosystem