Our Focus on Deepening the Liquidity of pHBD

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▶️ Watch on 3Speak

In this clip from one of our LeoFinance AMA's, we talk about how we plan to deepen the liquidity of pHBD on PolyCUB.

It's very important for HBD to get more usage and the witnesses already helped solve the demand issue of that by changing the on-chain fixed interest rate 20% for staking HBD. This is really attractive for HBD and we can easily sell that to people of the DeFi space.

The problem that remains to be solved is liquidity and supply. We've talked to so many whales what want to invest hundreds of thousands of dollars into HBD. They're hoping for a safe, fixed rate return on HBD but, the problem is they literally cannot get their hands on that much HBD.

We've sent these whales to PolyCUB and they're going into the pHBD-USDC Vault and buying as much pHBD as they can without paying too much of a premium.

So if you watch that vault you'll see it's almost always being bought to over a dollar and then arbitraged back down to match the internal market pricing of HBD because there's are whales who keeping buying in little chunks since pHBD has the most liquidity out of any HBD listing.

Deepening the liquidity of pHBD is important to get HIVE more widely adopted, to bring more attention to LeoFinance and our DeFi applications, and for the value accrual of PolyCUB.

We talk about this and more in this clip from the Weekly AMA!

About LeoFinance

LeoFinance is a blockchain-based Web3 community that builds innovative applications on the Hive, BSC, ETH and Polygon blockchains. Our flagship application: LeoFinance.io allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards.

Our mission is to put Web3 in the palm of your hands.

Twitter: https://twitter.com/FinanceLeo
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Whitepaper: https://whitepaper.leofinance.io

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Join Web3: https://leofinance.io/
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Delegate HIVE POWER: Earn 16% APR, Paid Daily. Currently @ 2.8M HP
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Web3 & DeFi

Web3 is about more than social media. It encompasses a personal revolution in financial awareness and data ownership. We've merged the two with our Social Apps and our DeFi Apps:

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▶️ 3Speak

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Great job, nice way to bring more HBD awareness through POLYCUB. Can a whale successfully buy $300k HBD now? Don’t know how these things work

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They could, but it would take quite some time. The best way to do it would be to buy in small few $k chunks, wait for someone to arb the pHBD price back down to $1, then buy again and keep doing that for several days or even weeks in the case of buying $300k.

This is why HBD needs more liquidity. pHBD having $5M in the LP could solve this

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(Edited)

Strangely, with a lack of liquidity, the price should skyrocket, but this is not happening yet. What caused it? As I understand it, the interest in the coin is very high.

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You mean the price of pHBD?

It’s always pegged to $1 - same as the price of HBD since it can be freely arbitraged

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I understand that HBD will strive not to fall much below the dollar, but it cannot become more expensive how was it before? Sorry, I thought that if the Hive overtakes the HBD, then the HBD will reach for it.

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It’s always possible. HBD is a soft-peg to $1. Arbitrage will always seek to even it back to $1. I don’t foresee another event like the past as that was a coordinated event by Koreans on exchanges to skyrocket HBD and make a huge profit.

If it does happen, then that’s awesome for us! Huge profits.

If it doesn’t, then HBD functions as it should: pegged to $1

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As far as I understand, it is possible to convert Hive to HBD, but this takes several days and the price may change. Or am I wrong?

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Yeah, through the blockchain right?

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Exactly, but, as I understand it, it is risky in terms of a possible increase in the price of the Hive, just during the conversion period.

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This is correct - there is a delay on conversions which could lead to you losing money on the conversion. Ausbit built a great tool for tracking conversions

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The idea of deepening the liquidity of pHBD is a nice initiative in promoting HBD for more users to be attracted in staking the stablecoin.

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HBD could be the killer onboarding mechanism for Hive that we've all been waiting for

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It is really moving in that positive direction that we can all witness the progress occur especially with the 20% interest applied on it.

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You mean it's Hive's growth pill? Killing can be assessed in different ways)

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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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image.png

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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That's a good idea from the team. Bringing value to HBD through POLYCUB is such an awesome intiative and it good way to introduce the whale to PolyCub

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Since their are whales who are interested in buying HBD but there isn't enough liquidity, I personally think that a solution has to be made quick,but the question for me is how can we make more liquidity, I hope I can get an answer to this.

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Imagine yourself fishing. You feed the place of fishing but if you overfeed the fish you won't catch anything and if you don't feed the fish you won't catch anything, you need to catch the golden mean.

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Oh I think I've got the concept behind that, in my opinion it means that it all has to be on equal stage

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Then you are in a winning position)

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Wow, thanks for the enlightenment 😊🙏.

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Sarcasm is also taken into account when counting comments, you win here too)

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PHBD fixes this!

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Yea, after looking more at your posts I discovered that pHBD is what fixes the liquidity problem of HBD.
Thanks for the update 👍

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Way to go, the concentration on liquidity has been really great. HBD is really focal to hive and I wondering how far this deepening can go especially in the aspect of excessive demand. Great job Khal

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(Edited)

This is a great move by the Leo finance team. Increasing the liquidity of the pHBD will sure draw more traction to hive generally and the other defi applications. I’m sure the hoarders do so for good reasons but adding to the pool is the move users should be making for the growth and adoption of HBD.

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Focus on deepening liquidity on pHBD is a really good move. It would be great for polycub and hive in the long term

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What better way to go than concentrating on building tye liquidity over at pHBD. Stable coins have proven to be a mainstay. Coupled with those appealing APR, it would attract more users and gain more acceptability over time

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The only issue I have is it's crazy hard to get my hands on any decent amount of HBD in order to contribute to the liquidity pool. Hopefully with Hive starting to climb in price those payouts should be a bit more HBD focused.

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Yes it is difficult. The best way I’ve been able to is slowly set orders on the internal market to buy it + buy pHBD when a whale sells it down to $0.98

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Been a few times I've seen it dip over the last few days so a good strat!

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Probably, with these words you expressed the thought and expectations of the majority)

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That UST refference at the end though :D

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Looking at the stablecoin market, PolyCUB offers the best returns. The PHBD-USDC farm is my favourite. Safest farm for me these days when markets are uncertain.

I also feel that when the liquidity pool exceeds 1M, great things will happen for both PolyCUB and HIVE.

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I am gradually adding :)

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As am I! I’m glad we launched pHBD when we did… it saved me over $100k from the Terra explosion because I moved it from UST to HBD days before!

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I saw a lot of HBD in the @p-hbd account being saved to earn the 20% APR. Does the earning go to the POL profit (so it's shared by all xPC holders)?

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Good question: the native staking of assets - both HBD and Hive are staked by the oracle and used to buy POLYCUB. This POLYCUB is distributed to the LP incentive pool

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So PolyCUB has a way of arbitraging the price back to the peg? I didn't know about that.

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