PolyCUB is Going to Solve a Lot of Problems With pHBD
frens, it's time to talk about all the problems that can be solved with some new features coming to PolyCUB.
Solving the HBD Liquidity Issue
It may not be that apparent to your average user that there is a major problem with liquidity in Hive Backed Dollars HBD. HBD is our native algorithmic stable coin here on Hive, but the major issue with it is the limited liquidity. This means that if someone wants to buy 100,000 HBD, good fuckin luck. It's basically impossible.
If you look at Bittrex, there's like $20,000 in liquidity there and there's like $100,000 on the internal market. If a whale wants to do whale shit with HBD, they are gunna have a hard time. Listening to the LeoFinance AMA and hearing Khal talk about having to do it in $100 chunks, it sounds like a nightmare. Even BeeSwap SWAP.HBD only has about 67,000 HBD in liquidity available.
If you haven't heard about PolyCUB at this point, you must be living in a cave. Either that or completely new to the Hive/LeoFinance communities. PolyCUB is a DeFi 2.0 yield optimizer built by the LeoFinance team. It's got some pretty incredible things going for it as is and is constantly being updated. A couple days ago, it was announced that HBD is going to be added to the PolyCUB platform via a wrapped version of HBD on the Polygon blockchain - pHBD.
This pHBD is going to be able to be moved back and forth between the Hive blockchain and the Polygon blockchain instantly. Just like how we have a bridge for LEO to BNB Chain and Polygon, we will have a bridge for HBD to Polygon (and BNB Chain soon). Sometime in the Sooniverse, we will see the new version of LeoBridge that will serve as a hub for moving any token cross-chain instantly.
On PolyCUB, there's going to be a pHBD-USDC pool that pays out a percentage APY yet to be determined. What this will do is create massive liquidity (depending on how much goes into it) for the users of HBD. It benefits PolyCUB in a lot of ways as well with the fees that will be charged by the protocol. 0.25% wrapping and unwrapping fees, and 1-2% deposit/withdrawal fees. These fees will generate funds that are locked permanently in PolyCUB's protocol owned liquidity.
Solving HBD's liquidity problem will enable it to be used more broadly, potentially even outside of the Hive ecosystem. It's really one of the longest standing algorithmic stable coins and generally stays pretty close to the $1 mark. With the sheer power of the Hive blockchain with 3 second blocks and zero fees, HBD could absolutely be used for other things.
In order for any real business or integration of HBD to work though, there simply has to be more of it available. There's tons of HBD being locked in savings to earn 20% yield. It's hard to exchange it for anything really without jumping through some hoops. This has to change and PolyCUB is doing something about it.
Can we build a $5,000,000 liquidity pool between USDC and HBD? Absolutely. There's plenty of us here in the Hive world that are going to be ready to throw some funds in and earn. The real challenge is - it needs to compete with HBD's single staking of 20% APY. I think it will. What do you think?
Thanks for reading! Much love.
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Posted Using LeoFinance Beta
Well that's definitely interesting and I can't wait to hear more about the liquidity provider rewards that our internal pool could be able to pull off.
Actually I'm pretty amazed because my investment here on the blockchain has really grown and provided me opportunities to start supporting amazing initiatives like this even as a small little fish.
It's gunna be a great way to earn yield on a stable pool
I can't wait for so much more to be coming that's for sure.
Keep investing!
Gonna be interesting and I'm thinking it through the best I can. Getting rewards in polycub and locking it for 90 days or compounding 20% in savings. Polycub sounds better but my luck the price will go down. But honestly you can't lose if you are willing to grind it on hive and rescue any losses.
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Yeah I'm not sure how it will play out. But it's definitely going to be easier to move in and out of HBD which is key for the success of it as a stale coin
Fortunately for you the price of POLYCUB is way down so it is not like you are getting in at the top. But you are right, the payout in Polycub along with the claim penalty are major factors to consider.
The fact is that we are taking a stablecoin and adding a degree of volatility to it.
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Well, I'm learning. The fact that I'm starting to know what considerations to make is a big step. I'm going to ease in.
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For sure is a huge issue with the amount of liquid HBD going around and having a new spot of liquidity will be huge. It could prove to be one of the most powerful entry points into hive and that sweet 20% APR currently going on to bring in investors.
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Oh yeah. This may be the catalyst to bring some major capital in
It really makes Polycub stand out. This is something that we have not seen before with the Cub/Polycub platforms.
If they can get even half the stated goal in the LP, then it will help to create a much stronger platform.
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It is going to really help both ecosystems. This is one thing that will really separate Polycub from all else that is out there. If they can get a massive HBD pool going, then it will really help out Hive also.
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Everyone has to do their part and contribute.
Posted Using LeoFinance Beta
I read that somewhere. LOL
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I really believe that pHBD will solve many problems. I'm really curious what will happen when it launches. Above all I believe pHBD will help the Hive ecosystem.
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It will be interesting, that's for sure
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It launched and the world didnt blow up.
So I guess we are fine.
Closing in on $225K in the pool. Not bad for the first few hours.
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It's really good for the first few hours because no one knew it was going to launch today. I think there will be more entries over the weekend.
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I would imagine there are going to be more in 3 days. People will start to release their HBD. So I would expects a big jump in 72 hours.
For me, I need to figure out how to the best way to get USD from Coinbase to Polygon. Not sure how to go about that in the most efficient manner.
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Even if the yield of pHBD/USDC is slightly lower than 20% there are still multiple advantages to farming the LP instead of holding it in the on-chain savings account.
It will still be worth farming this LP even if the yield is only like 15%.
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I agree. Arbitrage will be a lot easier. LP isn't locked for 3 days, but I assume the rewards farmed will be subject to the 90 day lock with penalty?
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Will a lot arbitrage I wonder.
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It's worth noting that the Bittrex pair is BTC/HBD which is super annoying.
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From what I read, most things about Bittrex are super annoying.
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If you haven't heard about PolyCUB at this point, you must be living in a cave. — as harsh as this sounds it’s just the bitter truth , no hard feelings . Liquidity has always been a long lasting issue for the hbd . pHbd coming to the rescue will help this predicament a thing of the past .
It wasn't meant to come across as harsh. More sarcastic. I try to have fun around here :)
We are making some waves that is for sure. Hopefully we are now dealing with an expanding system that leverages its pieces against each other for further expansion.
Once we hit that point, it is going to take things to another level.
Posted Using LeoFinance Beta
I guess expansion is somewhat the ultimate goal 🤔
Well, edicted talked about some additional benefits of this project, but the most important and what I like the most is the liquidity and the ease of getting the money back.
Something I would like to see is the APY, because if it is a good apy for example 90% that would bleed the hive market a lot, but if it is something reasonable then it would remain stable in the long term.
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It went live minutes ago, and the APY is 77% now so... Jump in :)
Check my page for a guide.
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The APY isnt going to affect the stability. They are two different dynamics.
If the APY is strong, it will lure more into the pool.
Posted Using LeoFinance Beta