Posts

Leofinance announces huge news stablecoin pair paying 40% APR : HBD-USDC !

avatar of @shortsegments
25
@shortsegments
·
·
0 views
·
2 min read

Leofinance Monumental Announcement

Khaleel announced yesterday that the Polycub road map now contains the stable coin pair HBD-USDC! And an APR of 40%.

This is hugely bullish because…

  • This is massively bullish as similar moves by Terra Luna led to the native token Luna mooning from 1$ to 100$.
  • This creates a clear path from Hive to DeFi on Polygon.
  • He also announced a wrap service Native HBD to Polycub HBD called pHBD.
  • Then he announced the APR of 40%.
  • In case you don’t invest in Stable coins, the usual rate is 5-12%, so 40% is a massive premium over the normal rates.

This is a huge attraction for large investors.

  • Large investors in crypto, and most asset classes become very conservative once they make it big.
  • After all, after your investments earn you your first million the last thing you want to do is loss half of it or two thirds of it on a volatile token.
  • Risk aversion in cryptocurrency means stable coins.
  • Specifically, stable coin pairs or single token stable coin vaults.
  • Usually Stable coin vaults paying 4-8%, low compared to most of DeFi, but much higher then bank savings rates of 0.25% APR.
  • However stable coin liquidity pairs pay higher 8-12% APR.
  • So when Leofinance creator Khaleel announces a stable coin Liquidity Pair paying 40% He suddenly has a lot of peoples full attention.

What’s so special about stable coin liquidity pairs?

  • One word, impermanent loss.
  • Okay two words, it seems my brain thinks these two words are chained together.
  • So in a stable coin pairing, impermanent loss is practically non-existent.
  • So you won’t experience the huge paper losses you encounter when your token bought at 4 dollars crashes too one dollar.
  • ‘Which is something which happens a lot.

Stable coin pairs allow you to have the best of two worlds.

  • They pay higher then the usual single token vault…
  • and they don’t have the risk of impermanent loss that a usual liquidity pair does.
  • It’s like the American saying of having your cake and eating it too.
  • ‘It’s new, extremely disruptive and everyone on Hive will have a seat at the table of the bountiful feast.

Last words..

  • I keep ending these posts with the words Khal let the Lion Roar
  • I guess he heard me and he did let the Lion roar…
  • ..And it’s deafening :)
@shortsegments

.

Posted Using LeoFinance Beta