A Comparative Analysis of HBD Savings and vexPOLYCUB Lock

Hello LeoFinance ecosystem!

Today's post will focus on a comparative analysis between HBD savings and vexPolyCub.

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HBD savings became more fruitful after the April change in interest on HBD savings from 12% to 20% APR by a unanimous decision of the Hive Witness. This entails very little process to engage in, although, one can buy HBD from the on-chain market if the individual doesn't have any in his or her Hive wallet and then move the HBD into savings.

On the other hand, vexPOLYCUB (Voting Escrow xPolyCub) just came live some 72 hours plus. This came with an intention for holders xPolyCub to lock their holdings for a 2 year period in exchange for better yield and governance around the PolyCUB hemisphere.

Remember that the both platforms are on the hive blockchain, while the internet on HBD savings is directly controlled by the Hive Witness, vexPolyCub lock is controlled by the LeoFinance Multi-Token Bridge project known as PolyCUB.

I'll immediately look at their similarities and differences to check which is best or to outline their uniqueness as separate platforms.

Comparative Analysis Between HBD Savings and vexPOLYCUB Lock

Similarities

  • Both platforms have a fixed 20% interest not minding the duration. Although the HBD savings is calculated in APR, while vexPolyCub is calculated in APY. The explanation of the difference between APR and APY will come on a different post.

Differences

  • To me the HBD savings is a straight forward arrangement that deals with transferring one's HBD rewards to savings or purchase some HBD on-chain and move it to the savings. vexPolyCub comes with a different approach, for those that don't have PolyCUB at all, needs to stake PolyCUB first, and then further stake them to xPolycub and move the amount of xPolyCub into the vexPolyCub lock which will remain as vexPolyCub for the next 2 years.
  • Another difference comes in the yield in terms of rewards. HBD savings gives you some percentages of your HBD on a daily basis but this rewards can be claimed after 30 days unlocking period, but this isn't completely so for vexPolyCub. What I mean here is that it takes 2 years unlocking window for any xPolyCub staked in vexPolyCub.
  • vexPolyCub has an additional reward pool which comes from just holding xPolyCub. Apart from the fixed 20% APY on vexPolyCub, each holder of xPolyCub generates additional 66.77% APY for the same 2 years period. This means that the vexPolyCub platform offers a total of 86.77% APY to holders.

Safety
Safety is one of the things investors considers before venturing into any platform. In this section, will be looking at the safety and risk involved on both platforms.

I think many people will be considering the duration of unlocking their investments. For HBD savings it's 30 days, while vexPolyCub has a 2 year unlocking period.

Whether 30 days or 2 years unlocking period, both are risky as components of the cryptoverse. In crypto, anything can happen within a short period of time, but that's not withstanding, investors must take the risk during bear season in order to bull.

For HBD savings everyone knows that the limits is fixed by the HBD stabilizer and it revolves around $1 and $0.80. One of the confidence most PolyCUB and xPolyCub holders have is the fact that values on the PolyCUB project aren't determined by the market price but by its Multi-token bridges.

Since this is the case, vexPolyCub is as safe as the HBD savings.

Posted Using LeoFinance Beta



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If you can land yourself enough of it I see HBD interest being very nice. However there's many unknowns such as how long it's going to last which would play a very critical part in investing. The price swings of 10% are still a issue as well big time. 20% APR sounds great but if you sell at $0.95 or less you just killed much of it. Perhaps in time

Posted Using LeoFinance Beta

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