I know.
Many want everything on L2. But Internal Market V2 sounds cool, right?
But I can't stop thinking about the most decentralized Defi protocol out in crypto build on Hive L1.
So let's start the monolog
A Defi protocol for Hive/HBD would have many advantages for all hive holders. A swap fee that auto-compound to investors ( like 0,025%).
Another usecase to lock up Hive and HBD.
But now the best. Think about Hive DAO would invest in that. So in other words the community.
Lets think deeper into this:
DAO puts 15 Million Hive and 15 Million HBD into the pool ( ratio 1/1 to make it easy, it could also start with it). DAO never puts the funds out again. Only farming the swap fee and growing with it. Unlimited liquidity for trading.
Swap fee 0,001% ( can be more)
With this as a community investment for the start in it, it would mean hive would become 100x more liquid. The pool from DAO would be growing unlimited because of fees. It would also mean it starts eating more and more Hive and HBD.
- Another awesome use case for HBD and Hive besides staking. Because also investors can stake in it.
But there is more. Let's do some simple math:
If 1 Million USD would be the daily transaction volume on average, DAO investment would grow 1000$ a day. This would be in a year 365k USD.
Sure everyone can invest, but I think with 30 Million start investment from DAO, the major part should be eaten by that.
1 Million in Volume is not that much. If prices fall or increase, people start trading for arbitrage winnings.
Because crypto moves all day long, this alone should add some basic volume.
But there is more. Because of the deep liquidity and the zero fees on hive, it could be used for high volume swaps between chains. If this would happen, we talk about a way higher volume.
What if the price dumps back to 0,10$?
The pool would eat ( because DAO never leaves the pool) a massive amount of liquid hive.
Some Math: 15M HBD / 15M Hive at pooled at the start:
on 0,1$ per hive, the pool should have ( if DAO investment is the only investor)
47.430.000 Hive and 4.7 Million HBD.
With this number in head, the price would never drop to 0,1$ in pool. Maybe HBD loss in value and something crazy happens, but in theory, because of the lock-up, it would be impossible to fall that low again. Because there are simply not enough tokens out.
In case we have 47 Million hive in that pool, perfect, so close to every hive leaves exchanges. Nothing much left to dump. But to be real, that's really unlikely.
DAO fund could also start buy back massive amounts of Hive via a proposal.
In other words, the community buys back hive and removes it permanently from the market. DAO can produce again HBD and an endless positive loop could start.
It would be like a decentralized Central bank on Hive. Think about it, that's really unique.
IF we think deeper on Hive decentral Central bank, DAO could trade with pool to make HBD stable. Like the internal market, but with way higher volumes. Think about the returns for DAO fund. Massive.
Could venture capital attack hive at 0,1$?
it would be easier to buy it on exchanges. They need HBD for that, not real USD. That would it make close to impossible to sneak around and buy.
Because if someone hold for example 1 Million HBD, they must hodl that from way higher and wait fucking long and take massive risks on that + Other people are out there too.
So no, impossible. Where should the HBD come from? It's Hive exclusive. Nobody can fuck with. And with more utility, the token becomes more stable.
What if Hive at 100$?
Same game, but take a minute and think about 80$ hive.
Ok back to the article.
100$ would mean massive amounts of hive would be eaten by natural demand to come to that price.
Same numbers math:
1.500.000 Hive and 150.000.000 HBD would be pooled by DAO ( think about the fees that would auto compound in pool and eat funds forever, WHOAAAAA)
The funds would be worth 300 Million USD at that point. Crazy.
If some moron now writes " impermanent loss by 80,2%" fuck you :D It would not matter because it adds way more value as it eats.
300 Million USD in liquidity onchain in our decentralized network.
Think about that. Think about the possibilities.
I think some investors would invest in it too. So 1 billion would be not impossible. And we really print HBD on demand, because the pool forces us to do.
If not DAO fund takes advantage of the stabilizer proposal.
Why L1 and not L2
More security is the main reason. With that on L1, it would be the most decentralized defi pool in the whole crypto space. Also the most secure one.
Conclusion
I know I have the best ideas. Feel free to say thank you :)
Joke besides, I think it would be a really good idea. Special the 12% interest could also move to the pool if wanted.
The higher the trading volume, the more Rcs are needed. I would expect a ton of transactions. Every RC that's eaten by that, removes hive from the system into stake.
The fees that auto compound give investors and the community a nice return.
And before you say, hey that's exactly the same idea you already post 3 times.
I know, with the difference of the DAO part :)
Feel free to comment.
BTW, 