RE: Our Focus on Deepening the Liquidity of pHBD

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In all honesty, I haven't watched the video so apologies if the answer is in there but the question is, with people wanting to hoard HBD for the superb interest rates, how can you increase liquidity when HBD is kind of a victim of its own success. So many Hive users are sitting back and enjoying their 20% that there would be very little motivation to release it and add it to your liquidity pools.

Tough one.



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The best answer is two-fold:

  1. it has a better APY
  2. the value prop for growing the Hive ecosystem is superior

#1 is the selfish reason to do it. You can earn 31% APR right now for staking pHBD-USDC.

You also have the benefit of it being 100% liquid (if you stake HBD on-chain, there is a 3 day unlock period).

11% more might not sound like much, but it is a big deal in the stablecoin world.

#2 is the altruistic reason: it cannot be relied upon as we must assume that everyone will do what is in their best immediate interest. However, if nobody provides liquidity for HBD on exchanges (pHBD-USDC on Sushiswap being an example of an exchange), then HBD and the Hive ecosystem will struggle to gain outside adoption - which is the ultimate goal of HBD in the first place

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Explained in a way even I can understand. Superb answer, especially the second part.
Thank you very much for taking the time and best wishes fella :-)

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Why, 11% is a very solid increase in salary and I doubt it that all banks can provide you with 11% per annum in stable currency.

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Perhaps this is a temporary euphoria and people will get back to work. I must confess that I am one of those who cannot get useful information from the English video.

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