pHBD - Don't Just Trust, Verify Instead.

over 2 years ago

pHBD is the wrapped version of our very own Hive Backed Dollar that lives on the Polygon blockchain courtesy of the LeoFinance team.

Transparency is Key.

PolyCUB came out about 6 weeks ago and it has been a bit of a wild ride. The best part about it is... Along the way, we get 100% transparency from the Leo team. From being open about bugs, UI issues, and even protocol owned liquidity to the new features that they are considering adding. A few weeks after the launch, I wrote a post about how they are driving growth with trust and transparency which I find awesome. Most DeFi platforms are way less transparent and deal with way more money.

Today, we got a post detailing the backend mechanics of pHBD which is incredibly important for its growth. Anybody can take whatever coin, mint it on a new blockchain, and say it's a wrapped version of said coin... But it's a whole different story when it's 100% verifiably backed on its native blockchain. HBD is an algorithmic stable coin, and the longest standing one to exist, at that. We're not talking about USDT, which can print trillions in an instant with no one batting an eye about backing...

Source

There's one thing that is undeniable. The blockchain does not lie, and with that being said... Anyone can take any address and plug it into a block explorer to verify what's there and where transactions are going. This means that we can literally check if the amount of HBD in the pHBD oracle account @p-hbd matches the circulating supply of pHBD on Polygon.

As you can see, half of the HBD in the oracle account is liquid to make it possible to unwrap pHBD back onto Hive. The other half is staked in savings, generating 20% APR. All you have to do now to verify that pHBD is 100% backed by HBD is check the circulating supply on Polygonscan.

Looking at the pHBD token contract on Polygonscan, you can see exactly what is available. According to the post, the first 2 wallets are the Cold and Hot wallets that hold most of the pHBD supply. These pHBD tokens are not circulating and will only be available on the market as more HBD is added to the oracle account.

The 3rd address on the list is the pHBD locked in the pHBD-USDC liquidity pool on PolyCUB. This is also 100% verifiable. You can hop over to the PolyCUB farms page and see that there is a little less than $300,000 in the liquidity pool. Half is pHBD, half is USDC. It doesn't take a math genius to see that this number matches the amount of pHBD shown above in the liquidity pool contract, address number 3.

In the magical world of crypto, we're in the wild west out here. We always have to watch our backs and do our own due diligence when we start interacting with new protocols or new tokens. The beautiful part about that is that we have the blockchain backing this stuff, which is public in most cases. You can do all the investigating you want and see exactly what is happening with the tokens.

We have an incredible stable coin yield opportunity here thanks to the creation of pHBD. You can take $1000 and put it in the pHBD-USDC liquidity pool and earn 58% APY. This is incredibly powerful considering there is literally no risk. They are both stable coins designed to stay as close to $1 as possible. No risk of impermanent loss or the market tanking.

I've written about treating PolyCUB's stable coin farms as a supercharged savings account, and now we have yet another farm that enables you to do that. Sure, you can stake your HBD on Hive in savings for 20% APR, but if you wrap it and pair it with USDC, you can double that plus some! The liquidity pool needs our help to continue growing, and transparency is something that we need to highlight here.

And remember kids, number go up.

Thanks for reading! Much love.

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