Greasing the Skids for Leo DeFi

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avatar of @travelwritemoney
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7 months ago - 2 minutes read

In the past couple of weeks, I have been working out alternatives to move HBD out of Hive. Currently, probably for regulatory reasons, I am unable to convert HBD to USDC through @blocktrades. Also, @v4vapp has a low conversion limit for HBD to Lightning.

Converting from HIVE to USDC has the additional burden of figuring out cost basis. When it comes to HBD to USDC, you can guesstimate a $1 cost basis. For HBD to Lightning, particularly with Strike app, there is no change in price for BTC during that instant when HBD converts to Lightning, which is then converted to fiat in my wallet. Effectively, $1 cost basis.

The other exchanges listed on PeakD don't deal in HBD at all. That leaves DeFi as the other viable alternative to go from stablecoin to stablecoin. So, Leo DeFi comes to the rescue in the form of Cub Finance and PolyCUB. One runs on Binance Smart Chain. The other Runs on Polygon.

cub finance.png

The challenge in using those two paths is that you need to grease the skids a little before you can do any transfers. This means that you need to have some BNB in your BSC wallet. And, you need to have some MATIC in your Polygon wallet. The BNB and MATIC balances will pay for the conversion fees on DeFi exchanges. And, they will pay the transfer fees to move tokens out of your wallets.

You only need a couple of dollars worth of BNB or MATIC to start. In any subsequent transfers, you can convert some your bHBD, pHBD, or USDC into BNB and MATIC for future transactions.

In one instance, I used Hive Engine to convert some HBD to BNB to seed my BSC wallet. In another instance, I was able to directly send MATIC from an exchange to my Polygon wallet.

After doing all this I can now send wrapped HBD, either bHBD or pHBD to my wallet to convert to USDC, which can be withdrawn from exchanges, or spent from a debit card.

There is no present need to do these things. This is more of a prepping exercise. I don't want to have to learn these things in a hurry.

The key advantage here is that I can now use exchanges available in the USA to top up my HBD savings going from stablecoin to HBD. And, when the day comes that I want to withdraw my interest payments, I'll have HBD to stablecoin. Super easy tax calculations.

Another side-effect of having these paths open is that I can now earn for providing liquidity on the DeFi markets. I'm still iffy on that. But, at least there's the option.

DeFi is the future of finance. The ability to bridge between Hive and BSC or Polygon is so important. This is particularly important when you can use Cosmos to bridge between chains. You can do all your banking, all of it, on the DeFi networks. This is worth learning, if you don't already know how to do it. In my opinion, it will be the way money moves.

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