A Simple Realization About DeFi

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avatar of @travelwritemoney
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7 months ago - 2 minutes read

As the price of cryptos has dropped, I am getting excited about resurrecting my Core Number Compounding efforts. The way I learned about Core Number Compounding from YouTube, it was done on Coinbase and Crypto.com wallets. Yes, on the exchanges.

Core Number Compounding with HIVE

Later, it occurred to me to try it on Hive using HIVE and HBD pairs. It actually works. It's somewhat passive income. But, the advantage of doing this on Hive is that it's all on-chain. There is no exchange involved other than the internal market.

It had not occurred to me until a few minutes ago that Core Number Compounding can be done on BSC, Polygon, or even Cronos. Originally, the concept was done using BTC, ETH, and fiat on exchanges. But, it could just as easily be done on Ethereum with ETH, WBTC, and USDC. On Polygon, you also have WETH, WBTC, and USDC. And Cronos has WETH, WBTC, and USDC.

DeFi makes it possible to do Core Number Compounding from within your wallet. There is no need to use an exchange except to move cash in or out of your wallet.

I think, possibly, the only psychological hangup is whether you consider WETH the equivalent of ETH? What about WBTC being the same as BTC? It's no different from HBD to pHBD and bHBD. Or, what HIVE is to pHIVE and bHIVE.

If you can accept the equivalence, then we only need to be transferring stablecoins on and off of exchanges into our wallets. Once there, they can be converted to other wrapped tokens on DeFi exchanges.

I was starting to accumulate BTC again. But, now I'm thinking I should cash it out and convert it to WBTC to hold in my wallet. Come to think of it, now I can justify a Ledger hardware wallet. On it, I can hold Polygon, BSC, and Cronos tokens. For Hive, I can just hold bHBD or pHBD on the Ledger, if needed. However, it's probably safer to keep my HBD in Savings.

I wish I had thought of this sooner. It's been hidden in plain sight.

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