Attractive Investment Alternatives For Hive, HBD, and SPS
Prices in the market have been flat since June. We have witnessed ups and downs in the last four months, but the general level has not changed. This situation is also the case for the Hive ecosystem coins.
Staking and DEFI return becomes even more critical when prices are flat. We can stake Hive, HBD, and SPS on the Hive blockchain. There are also attractive alternatives on the BSC network.
Hive
Hive power has an annual return of 2.87%. In addition, regular curation makes it possible to obtain a return of approximately 9%. It means that the total return on an annual basis is 12%. Considering that Hive's inflation is around 7%, we can obtain a real return in this way.
Curation is labor-intensive. Instead, by delegating Hive power to @leo.voter, we can generate 16% annual returns. 2.87% of this return is in Hive, and the rest is in Leo. Leo rewards are credited daily. We can convert Leo, the token of the Leo Finance community, to Hive on the Hive Engine. Currently, 2.1 million Hive power is delegated to the Leo Finance community.
When Hive is converted to Hive power, it loses its feature of being a liquid asset. Hive power transforms back into Hive in 13 weeks. However, when Hive is used in DEFI investments, we do not give up our liquidity.
The bHive-HBD liquidity pool on Cub Finance provides an annual return of 34%. This liquidity pool can be an ideal alternative for those who think the bear market will continue for a while. Investing in this pool makes it possible to benefit from the price volatility in Hive and HBD instantly. In the past months, HBD has gone above 1.5 USD twice. The price would return to $1, so those with liquid HBD took advantage of the opportunity. In November last year, Hive went above $2.5 for a few days. It was clear that the price would not be permanent at that level. Those with liquid Hive took advantage of the opportunity. The amount of liquidity in the Hive-BSC bridge will also be significant in such a case.
Also on Cub Finance bHive-Cub liquidity pool provides 42% return. After the bridges carried Hive and HDB to the BSC network, the Cub Finance application became active; the price stability was achieved because the income generated by the bridges supports the price of the Cub.
HBD
The Hive blockchain provides a 20% return on HBD. Since this return occurs directly on the blockchain, it is more secure than DEFI implementations. When HBD is transferred to savings, liquidity is given up for three days. The resulting interest can be claimed monthly and added to the saving account. When the interest is added to the principal every month, the annual return rises to 22%.
Hive supports the value of HBD, and investors can convert their HBD to Hive for 1 dollar in case of a possible decrease in value. This transaction takes place over the 2.5-day average Hive price. We can follow the statistics on HBD via HBD Reporting Tool. By purchasing HBD, we assume some price risk. The last year that the HBD stabilizer was active, the price did not fall below 90 cents. Therefore, the risk-adjusted return for HBD is relatively high.
In the Cubdefi application, the bHBD-BUSD pool provides a 31.5% return. BUSD, like HBD, is a reliable stablecoin, so we are faced with an attractive value proposition. Using Leo Bridge, we send HBD to the BSC network for investment. We generate the bHBD-BUSD LP token in the Pancakeswap application and invest this LP on Cubdefi.
SPS
SPS provides 31% returns when staked on the Splinterlands website. This return consists of the sum of the SPS and Voucher rewards. We can claim accumulated rewards at any time. Both tokens have ample liquidity on Hive Engine. Staked SPS becomes liquid in 4 weeks.
The SPS-BNB liquidity pool on the Pancakeswap application provides an annual return of 66%. BNB is a coin with zero inflation. Despite its low volatility, it gives reasonable returns. On the other hand, since it is the fourth largest coin, it does not have as much growth potential as SPS. Liquidity pool investments have their confusing aspects. For example, when SPS gains value against BNB, the number of SPS in the pool decrease. Otherwise, the number of SPS increases. So if SPS gains value quickly, some of it will turn into BNB. We have a portfolio of two coins, and the weights are balancing. Fixing the weights of portfolios is one of the most profitable investment strategies. However, SPS bulls may choose to stake SPS alone.
Conclusion
We can stake coins such as Hive, HBD, and SPS on Hive and invest in applications such as Pancakeswap and Cubdefi on the BSC network. So, which of the options listed above are more attractive?
I'm using the DEFI applications mentioned above and also staking on Hive. I plan to use the tokens in DEFI applications to realize profits in instant price increases that are not sustainable.
DEFI return rates change faster than staking returns. On the other hand, DEFI brings advantages, such as liquidity and high returns.
Thank you for reading.
Posted Using LeoFinance Beta
