PolyCUB is Going to Solve a Lot of Problems With pHBD

frens, it's time to talk about all the problems that can be solved with some new features coming to PolyCUB.

Solving the HBD Liquidity Issue

It may not be that apparent to your average user that there is a major problem with liquidity in Hive Backed Dollars HBD. HBD is our native algorithmic stable coin here on Hive, but the major issue with it is the limited liquidity. This means that if someone wants to buy 100,000 HBD, good fuckin luck. It's basically impossible.

If you look at Bittrex, there's like $20,000 in liquidity there and there's like $100,000 on the internal market. If a whale wants to do whale shit with HBD, they are gunna have a hard time. Listening to the LeoFinance AMA and hearing Khal talk about having to do it in $100 chunks, it sounds like a nightmare. Even BeeSwap SWAP.HBD only has about 67,000 HBD in liquidity available.

If you haven't heard about PolyCUB at this point, you must be living in a cave. Either that or completely new to the Hive/LeoFinance communities. PolyCUB is a DeFi 2.0 yield optimizer built by the LeoFinance team. It's got some pretty incredible things going for it as is and is constantly being updated. A couple days ago, it was announced that HBD is going to be added to the PolyCUB platform via a wrapped version of HBD on the Polygon blockchain - pHBD.

This pHBD is going to be able to be moved back and forth between the Hive blockchain and the Polygon blockchain instantly. Just like how we have a bridge for LEO to BNB Chain and Polygon, we will have a bridge for HBD to Polygon (and BNB Chain soon). Sometime in the Sooniverse, we will see the new version of LeoBridge that will serve as a hub for moving any token cross-chain instantly.

On PolyCUB, there's going to be a pHBD-USDC pool that pays out a percentage APY yet to be determined. What this will do is create massive liquidity (depending on how much goes into it) for the users of HBD. It benefits PolyCUB in a lot of ways as well with the fees that will be charged by the protocol. 0.25% wrapping and unwrapping fees, and 1-2% deposit/withdrawal fees. These fees will generate funds that are locked permanently in PolyCUB's protocol owned liquidity.

Solving HBD's liquidity problem will enable it to be used more broadly, potentially even outside of the Hive ecosystem. It's really one of the longest standing algorithmic stable coins and generally stays pretty close to the $1 mark. With the sheer power of the Hive blockchain with 3 second blocks and zero fees, HBD could absolutely be used for other things.

In order for any real business or integration of HBD to work though, there simply has to be more of it available. There's tons of HBD being locked in savings to earn 20% yield. It's hard to exchange it for anything really without jumping through some hoops. This has to change and PolyCUB is doing something about it.

Can we build a $5,000,000 liquidity pool between USDC and HBD? Absolutely. There's plenty of us here in the Hive world that are going to be ready to throw some funds in and earn. The real challenge is - it needs to compete with HBD's single staking of 20% APY. I think it will. What do you think?

Thanks for reading! Much love.

Links 'n Shit

Play to Earn	Read emails, Earn Crypto	Get free crypto every day	Get a WAX wallet
Gods Unchained	ListNerds	PipeFlare	WAX.io
Splinterlands		GoodDollar
Rising Star		FoldApp

Posted Using LeoFinance ^Beta