HBD Pump! PolyCub pHBD LPs are winning BIG!

4 mo
LeoFinance
1 Min Read
254 words

Hi HODLers and Hiveans,

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Another day and another Korean pump for HIVE and HBD. And it feels... good!

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Well, in theory I just got richer overnight but as most of you, my HBDs are locked into the Savings on Hive and even if I unlock them, I am pretty sure it will be back to $1 by then.

Well, this is only true because I pulled off most of my HBD from being a LP on PolyCub a few weeks ago as the APR was equivalent with native HBD savings. Big mistake... I did not take into account the liquidity factor.

As many PolyCub users are selling their HBDs to materialize this profit, the USDC-pHBD pool is looking good with APR>40%!

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As usual Hive also benefits from it

As you mostly have to sell HBD for HIVE in the internal market, HIVE is seeing some buying pressure.

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Well, overall, that is a good news for everyone. Some are just able to benefit more from it than others but it is a good promotion of HIVE blockchain as most of the other coins are flat or down today.

Stay safe out there,

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Actually it isnt good news. Stablecoins are suppose to be stable. This is an issue. Of course, without much buildout, including circulating supply, this is going to happen.

It tells us what we need to do. We need a lot more resiliency with HBD.

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3

Well, no matter how much liquidity we put, we cannot prevent Koreans exchange from messing with the price. The pHBD-UsDC stayed mostly stable I believe which is the real liquidity.

We (Hive community) will sell it back to $1 and when there are discounts we do pick some HBD up to bring the price to parity.

I believe this is not so bad.

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4 mo (edited)

I think impermanent loss comes into play here for some people in the pool unaware of HBD's pump? Maybe? Correct me if I'm wrong.

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If you go to sleep at 1:1 and wake up at 1:1, you have no losses no matter what craziness happened in between. You only risk getting above average fees due to increase in trading volume.

If you wake up sooner, you can exit LP and sell the pumping coin. If you are right and 1:1 equity restores again, you can buy back what you sold and end up with profit.

The only issue is if the LP ends up one-sided filled with the coin that lost value UST style - in the case of HBD pump, it could be USDC crashing, which Hive has no control over. If USDC is not crashing (as it was obvious this time), it makes no sense to claim temporary depegging of HBD is bad as it gives the users the opportunity to either sell at profit (as in the latter scenario) or ignore (as in the former). HBD users (including businesses) freeroll, Koreans who never knew the random coin from the homepage was a stablecoin pay their bills.

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@jelly13 probably did a much better job than me in explaining it but, when one of the coin pumps in a LP, you have a « loss » of opportunity. Meaning let’s say you had $100 of both $USDC and $HBD. Total = $200
If $HBD pumps to $2 and if you hadn’t pooled, you would have $300 (100$ of usdc and 200$ of HBD). Since you are in a LP, some is lost to fix the peg and your balance. So your total LP might be now 250$. 90 HBD and 125 USDC. The best for a stablecoin is usually to un LP and sell the HBd and wait for the repeg.
But you did not lose money

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4 mo (edited)

Interesting... if nobody lost any money, then that's great!

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Just a proofread:

So your total LP might be now 250$. 62.5 HBD and 125 USDC.

As HBD returns to $1.4, you have 83.3 HBD and 116.7 USDC, "only" worth $233.3 (certain people like to call it a loss although you are $33.3 up).

Note that we rely on outside info when evaluating your HBD and USDC. Looking at the sigle LP, for all I know it could be HBD sitting at $1 and USDC going to hell. Either way, it is still wise to leave the pool (if USDC zeroes, you got out for $83.3 which is way above the inevitable $0 if you stay).

This also explains the temporary spike in LP APR - smart money is out (trading HBD -> USDC as other LPs confirm both coins are healthy) and will be back when parity returns, pushing APR back to norm (earning more than those who stayed in and only collected extra fees).

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4 mo (edited)

Having more liquidity fixes this, we are in "green banana" zone, as liquidity increases (with a lot of help from polycub) and move to "yellow banana" this will work itself out, right?

....right?

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The people that shout "we need more HBD" from the rooftops are the same people that keep telling you to put your HBD in the savings account.

Interestingly, they also point out that there is not enough instant HBD (they are in the savings, you know) and claim HBD is broken cause 3 days is too long for a depeg.

They even made me refer to them as the people, even though they are, you know who.

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Great example of the value of staking on Polycub! I did the same recently when the rates dropped close to 20%, whoops!

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Same as you haha 😂

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Yup! In the saving account! Hope it’ll go much higher next month.

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