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HBD in the spotlight: 20% APR, pHBD and more interest

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Belemo
@belemo
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In the past couple of hours, I have been catching up on all the recent developments surrounding Hive backed Dollar(HBD). If you're a HBD holder, it's all good news coming through for you.

The recent development that has gotten the community excited is the increase in monthly revenue from HBD and Hive savings. This development instantly makes HBD the most profitable stable coin to stake, alongside UST.

At the time of writing, HBD offers up to 20% APR for saving. This is the highest interest rate in the land.

If you've never saved HBD before, you should be considering it in a bit. It is paying interest in pretty much the same way most farms and staking projects would.

For example, Staking SPS offers 26% APR but your income is a volatile token that has fluctuated between 10-12 cents in the past couple of weeks. WIth HBD, you're paid 20% on the dollar every month.

You can't find information about the total marketcap of HBD on either Coingecko or Coinmarketcap, so I had to do a little digging. After a few clicking about, I found a tool developed by @ausbitbank that tracks HBD activities.

At the time of writing, the total market capitalisation of HBD is only $9,548,447.549. Compared to most stable coins competing at the top, HBD is small fry.

This means that HBD is still a very scarce asset, and you'll need to go hard in the market to actually find it. Obviously, you also print more HBD from your publications.

The increase in interest rate translates to an increase in demand but seeing that it is a stable coin, Hive shouldn't be adversely affected in any capacity.

Thanks to this news, I've thrown my entire HBD collection into HBD savings because every second counts. In ideal condition, I'll be pulling roughly 121 HBD per month but the change took place 4 days into my savings.

In any case, the HBD in savings has an auto compounding feature, so whenever you claim your HBD interest, it goes straight into savings and that is used to generate your next interest in 28 days.

Polycub and HBD

Way before HBD interest was even discussed on Hive, the Leofinance team had already began preliminary conversations about a wrapped version of HBD getting involved.

@taskmaster4450 talked about it in this publication I recommend you read. He mentions the addition of a USDC/pHBD stable coin farm that will be added to Polycub.

The plan is to have the "deepest HBD liquidity pool", as Khal puts it. This is a really interesting move, as the knock-on effect will be an increase in the supply of HBD.

Right now, the number of routes to access HBD is very limited. You can either publish content and earn both HBD and Hive power.

You may also buy Hive and use the internal mechanism to automatically convert it to HBD. After converting to HBD, you can then throw the HBD into Savings.

Note that only half of your Hive is only a fraction of your Hive is converted to HBD, the rest is held as collateral for a couple of days and then returned to you.

pHBD is going to bring more attention to HBD, thereby increasing the demand for the stable coin. We're going to be having more eyes on HBD, and that loosely translates to more attention on Hive and that's a win in my books.

Posted Using LeoFinance Beta