The Hive blockchain, with its unique social blogging platform and its native cryptocurrency, HIVE, has long been a hub of creativity and community engagement. However, until recently, Hive quietly faced a significant challenge that threatened its viability and liquidity - the risk of isolation from the larger crypto ecosystem.
The issue primarily stemmed from the fact that major centralized exchanges (CEX) were hesitant to list HIVE or HBD. This reluctance could have been due to a myriad of reasons, such as lack of sufficient demand, regulatory concerns, or the technical complexities of integrating a new blockchain. The only major exchange to carry HIVE or HBD is Binance, but access to this platform is restricted in some countries. Thus, the only way to trade HIVE or HBD for many users was within the Hive ecosystem itself or on a few smaller exchanges that supported these tokens.
This situation posed a significant risk for Hive, as it could lead to a lack of liquidity. Without sufficient liquidity, the value of HIVE and HBD could become highly volatile, making it difficult for users to buy or sell these tokens at a fair price. Moreover, the lack of external trading avenues could deter new users from joining the Hive platform, thereby stunting its growth.
However, the advent of LeoDEX, a decentralized exchange (DEX) built on the Maya blockchain, marks a pivotal moment in overcoming this challenge. LeoDEX provides a bridge between Hive and the larger crypto ecosystem, thereby reducing the risk of Hive's isolation.
The real game-changer came when LeoDEX connected Hive to Maya Protocol. Maya Protocol is a fork of THORchain and shares its ability to natively swap BTC and ETH. It also connects to blockchains that THORchain does not, such as Arbitrum and Dash, and supports a range of tokens, including LEO, a Layer 2 (L2) token of the Hive blockchain.
This connection opens up a new pathway for users to seamlessly convert their HIVE to other cryptos. It all starts with converting HIVE to SWAP.HIVE, which could then be converted to LEO. The LEO could then be connected to LEO on Arbitrum, which could then be routed to other assets via CACAO, the main token on Maya Protocol. The actual experience is faster and smoother than the description makes out. This offers Hive users a more diverse range of trading options, thereby enhancing the liquidity of HIVE and HBD.
Beyond LeoDEX, other recent innovations like V4V.app and VSC Network are also contributing to the increase in liquidity of HIVE and HBD. V4V.app allows users to exchange small quantities of HIVE and HBD via the Bitcoin Lightning network. This is useful for purchases of goods or gift cards. Similarly VSC Network plans to offer crypto exchange and smart contracts to the Hive ecosystem.
In conclusion, the risk of Hive being completely isolated and made illiquid was a significant concern for its community. However, the advent of LeoDEX and its connection to Maya Protocol has substantially mitigated this risk by providing Hive users with more avenues to trade their tokens. This development not only enhances the liquidity of HIVE and HBD but also makes Hive a more attractive platform for potential users who might want to invest in Hive.
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Originally posted on Shaine Mata. Hive blog powered by ENGRAVE.