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$HBD saved me from $UST

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@mistakili
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2 min read

Firstly, my heart goes out to everyone who was affected in the crash of UST.

The Best Way To Earn Interest On Crypto while avoiding volatility is through Stable coins. There are several options out there offering different interest rates on staking them but my go to algorithmic stable coin is the HBD(Hive Backed Dollars).

Here’s how HBD saved me from UST. If you are very deep into crypto, chances are you owned some UST as you must have been preparing for a bear market or were simply converting a portion of your volatile assets into stables,....(this was typically me).

....combined with the offer of 20% APR on Anchor through staking UST, which on a surface level, it’s the smart thing to do, especially after seeing how risk free Anchor/UST was portrayed to be.

Why HBD?

So why didn’t I? My choice of algo stable coin has been HBD for the longest time, because I’ve understood it to an extent, more than any other algo stable coin out there and I was willing to bet on it given its inconsistencies.

If HBD wasn’t available, you can bet 90% chance I would have been saving in UST. The availability of HBD deterred me from going the UST way even when the correct thing an average investor will do is just that as UST offered 20% interest rate for staking on Anchor, while HBD staking was 12%.

However, what I didn’t know about UST, I knew about HBD. For example, the death spiral theory.
HBD has long improved the checks and balances to avoid a death spiral with fail safes like
• 3 day lock conversion period, • HBD stabilizer, • 10-20% haircut on debt level

Funny thing is when I started to save in HBD a lot of these things didn’t make sense till recent occurrences.

source

Sustainable 20% APR

Most importantly, the utility of Hive token itself is not the type to be dumped on the market out of panic selling or whatever. Hive token is serious business for businesses and individuals on chain.
Moreover, just recently, HBD’s savings apr was increased to 20%, I couldn’t ask for any better! And so, I went all in.

HBD can also be paired with USDC on Polycub for 35% APR at the time of writing this post. HBD is super cool on so many levels, it’s not perfect, it’s infact stablish but it’s not going away anytime soon.

Thanks for reading

Posted Using LeoFinance Beta