PolyCUB Governance Over Polygon HBD (pHBD) can Extend PolyCUB Lifespan to Surpass a Decade. Come and Learn How it Works

It's incredible to see that the Hive Witness has unanimously resolved the HBD interest rate to be at 20% APR. This to me is very unique in terms of exposing the HBD to the larger crypto market over time and is actually a strategy to grow hive from it's current price mark.

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This unanimous agreement reached by the Hive Witness has solved one of the biggest challenge facing the exposure of HBD to the larger crypto market. The problem solved by the witness is known as the HBD Fixed Interest Rate (Demand) and it's left with one other problem which is the Supply or HBD Liquidity.

The question is how can this 50% challenge of HBD liquidity be solved?

According to @leofinance, this issue can be solved through providing liquidity for the HBD. This liquidity can come in form of pHBD (Polygon HBD) or HBD on the Polygon smart Chain.

Creating the HBD on the polygon chain is already taking it to the outside world and the polygon smart chain provides the liquidity pools required for the HBD to thrive in the outstanding. This might look a bit difficult because if the HBD remains in the polygon smart chain it doesn't have any link to the hive blockchain. So, how is the HBD now become beneficial to the hive community and the entire blockchain?

One of the ways of link back the pHBD to the hive blockchain is through this:

We've developed an oracle for a wrapped version of HBD. This wrapped version of HBD will live on the Polygon Network and the oracle governing it will be operated by PolyCUB (LeoFinance).Source

Creating the wrapped version on the Polygon smart chain gives it the required exposure but the unique features about this is the PolyCUB governance.

Since the PolyCUB project is a LeoFinance project automatically it'll bring another phase to the expansion of the PolyCUB project.

pHBD will work identical to the pLEO (also, bLEO, wLEO) tokens. You can instantaneously wrap and unwrap HBD into pHBD on the Polygon network.Source

This development is superb in the sense that it'll drive more attention on the hive and help in onboarding new users to the LeoFinance community and hive blockchain respectively.

Let's look at how this will help the entire PolyCUB project to outlive a 10 years expectations.

The PolyCUB governance over the pHBD puts the project in an advantage position to stay longer to achieve it's yield optimizing goal. Remember that the interest rate on HBD is now at 20% APR, which means more users will want to save more of their HBD or wrap it into pHBD on polygon.

This wrapped HBD will also provide some interest for PolyCUB owned protocol liquidity through some fees. The pHBD provides a wrapping and unwrapping fees of $0.25, which will be converted into pHBD-USDC vault that brings permanent liquidity to HBD

It should be noted that the PolyCUB governance over pHBD has not remove it's long term nature tilted on xPolycub, but improves the PolyCUB liquidity, which is very important to the growth and sustainability of the PolyCUB project.

This will become one of the strategies to help PolyCUB still longer than expected.

Posted Using LeoFinance ^Beta