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Just Added Some Liquidity to pHBD-USDC on PolyCub

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Adrian
@gadrian
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In a post from 10 days ago, I showed how I tested moving some funds from the Cosmos ecosystem to Polygon, on pHBD-USDC, the PolyCub stablecoin farm.

Then, I made the plan to move whatever I recover from the LUNA-UST collapse to the same pool on PolyCub, leaving anything else I still have in the Cosmos ecosystem in the same place and compounding them, and hoping they will make it through the bear market.

In the meantime, the Leofinance team came forward with a #liquidityweek contest via the @leogrowth account, with 5x100 USD worth of prizes for providing liquidity to one of the

  • pHBD-USDC
  • pHIVE-pCub
  • pSPS-pCub

farms on PolyCub, until May 31st, midnight PST.

As it happens, one of these farms was my target, and it was my plan to add this liquidity from Cosmos. I wish it were more, but nothing worked well on this front since Terra collapsed.

That's what I recovered from the rubble of my Terra assets and the matching OSMO on Osmosis: 16.75 ATOM. Which I turned into some 268 MATIC on Polygon.

In the end, I added a little over 75 of both USDC and pHBD to the liquidity pool (strange how well the numbers turned out to be close to multiples of 25, without aiming for that).

Here's the polyscan proof of adding the liquidity to the PolyCub farm:

I didn't do that for the prizes, I would have added this liquidity to pHBD-USDC no matter what, and the plans were laid out way before the contest was on. I guess if I would win one of the prizes, I'd recoup a small portion of the loss Terra incurred on my Osmosis positions.

Why pHBD-USDC for me?

In general, we know why building up liquidity on the pHBD-USDC liquidity pool would help both Hive and PolyCub.

But why have I chosen it?

First of all, my main focus is still HBD in savings, at the first layer level.

However, for access to some immediate liquidity that doesn't lose value if the market turns south(er), a liquidity pool like pHBD-USDC is very good.

It is on a platform we know and where we know the owner, it is half USDC, which despite being centralized it's seen by many as an anchor in the stablecoin world, and which also keeps peg well during market crashes, which is often when you need such immediate liquidity. USDC has a very high probability of being fully backed by USD in the bank accounts (they asked for external audits, afaik), but there are also some discouraging scenarios about what-if going bankrupt, from Coinbase after reporting losses. The question is, where does USDC fall in such a scenario (or its USD backing), even if it's only half controlled by Coinbase, the other half being Circle.

Serving as immediately available liquidity (unlike HBD in savings), and with a comparable or higher APR, paid in POLYCUB, I see pHBD-USDC as very useful and I'll continue building it.

However, if toward the end of the year, I am not about to hit my HBD target, and if this liquidity would help, I'll use it to boost my HBD in savings. Then, slowly rebuild again my pHBD-USDC.

Posted Using LeoFinance Beta