pHIVE Can Help The Expansion Of HBD

avatar

There is a lot of interest in the upcoming pHIVE liquidity pool that is about to be added to the Polycub platform. This will allow for access to HIVE using any Polygon based token.

Over the last month, the Hive Backed Dollar received a great deal of attention from members on Hive. With the increase in the rate of interest, to 20%, we realize how HBD is now at the forefront of the stablecoin market.

There are a couple challenges. To start, the production of HBD is rather slow. Even though there is a 20% return, we only have 9 million HBD as part of the free float. Since the number in savings in significantly less, the amount "printed" is actually less than 20%.

This also causes a problem with liquidity. Polycub has a liquidity pool and is seeing difficulty in filling it. This means that large players seeking to get their hands on $250K or $500K worth of HBD will have issues.

It is a dilemma that is garnering attention. Fortunately, we with the release of the pHIVE liquidity pool, we could see another weapon in the arsenal.

image.png
Source

pHIVE For HBD Liquidity

We could see the filling of the pHIVE liquidity pool being utilized to assist in the efforts to solve the two aforementioned issues with HBD. To see how this operates, we need to understand where HBD liquidity is at the moment. For this, we look to Hive's Internal Market and the HBD Stabilizer.

This tool is paid out of the Decentralized Hive Fund (DHF). It is receiving over 6,500 HBD every hour. This is immediately taken to the Internal Exchange and used for liquidity. Here we see HBD that could be swapped using HIVE and put into the free float. In other words, there is over 150K HBD available each day.

It is also where the pHIVE pool enters the picture.

To illustrate how this works we will use a payout from the pool of 1,000 POLYCUB. For simplicity, we will use round numbers to understanding. By following this, we can see how the pHIVE liquidity pool could help get more HBD on the market.

This can be another way that pHIVE can help out the Hive ecosystem.

The process would look something like this:

  • pHIVE liquidity pool pays out 1,000 POLYCUB
  • POLYCUB is converted to 4,000 pHIVE
  • pHIVE is bridged to HIVE
  • 4,000 HIVE is swapped on Internal Exchange resulting in 3,000 HBD

This HBD can either be placed into savings, helping to generate more than 20% HBD annually or bridged back to Polycub and put in the pHBD-USDC pool.

As we can see, the payouts from the pHIVE liquidity pool can be used to help the expansion and liquidity of HBD.

There is also a way to fund the pHIVE pool over time. If one puts the HBD in savings, it will earn 20%. This can be used to for the pHIVE LP.

  • 600 HBD paid as interest
  • HBD bridged to pHBD
  • pHBD swapped to POLYCUB
  • 50% POLYCUB swapped for pHIVE
  • Both staked to the LP

The key point is more options opening up.

Internal Exchange As The Main Source Of HBD

Hive's Internal Exchange is crucial for the expansion of HBD. As noted, the HBD stabilizer is receiving more than 150K HBD each day for sale, through the payouts from the DHF. This is paid in HIVE which is converted into HBD. Since all the funds in the DAO are part of the free float, the HBD cannot go into savings.

One of the other challenges with HIVE is gaining access to it. A lot of the Western exchanges do not carry it. For that reason, getting HIVE to access HBD can be a challenge at times also. Here is where pHIVE can help to solve the issue.

Even absent outside investment, we can see how this could enhance our forward progress with HBD. Since people who are staking pHIVE are already in the ecosystem, they can use the above method to get into HBD.

One of the biggest benefits to this is it provides volume at every layer of the operation.

  • pHIVE-POLYCUB trading will increase
  • pHIVE bridge receives more usage
  • Internal Exchange has greater volume
  • pHBD bridge sees more transactions

With the exception of the Internal Exchange, this generates fees along the way. This helps the Protocol that is set up on Polycub, further increasing its holding and, ultimately, the ROI that is being paid out. This will, naturally, serve, to entice more money.

It is the proverbial one hand washing the other.

The best part of this is we can see how easy it is for people to show up on the Internal Exchange with HIVE. This can be a major hindrance.

Development Of HBD Use Cases

One of the keys for a stablecoin is the number of use cases. Ultimately, the goal is to get the coin used for commercial activity. Since we are dealing with renewed interest in this coin, the integration by applications is really just getting started.

However, we are now seeing more announcements regarding this. The most recent posts by @actifit mentions how they are incorporating HBD into a bridge they are building. This is very important since the two primary use cases for HBD at the moment are for generating more of it along with providing liquidity.

Both are baseline options we need to address. That said, it is vital that the community move beyond that.

We already know that Ragnarok is going to have HBD as the in-game token. All purchases are going to be done using that coin. Then we have the potential for HBD to be one of the main stablecoins on an online gaming platform.

Applications such as this offer HBD the chance to generate commercial activity. This will be one of the pillars that will provide HBD with its value.

In the short run, we can now see how the pHIVE pool could be used to aid in the expansion of HBD.

What are your thoughts? Are there other ways to use these liquidity pools to help either HIVE or HBD?

Let us know in the comment section below.


If you found this article informative, please give an upvote and rehive.

gif by @doze

screen_vision2025_1.png

logo by @st8z

Posted Using LeoFinance Beta



0
0
0.000
34 comments
avatar

pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 104 of my contest just started...you can now check the winners of the previous week!
10

0
0
0.000
avatar

How will this do better than some of the previous pools?

Is it really good for HBD if it's being speculated on many exchanges?

What makes HBD attractive is that it is truly Defi and lower risk than other stable coins.

Posted Using LeoFinance Beta

0
0
0.000
avatar

How will this do better than some of the previous pools?

There is a lot more HIVE available than HBD.

Is it really good for HBD if it's being speculated on many exchanges?

Do you want it pegged? That is where pegs come from, arbitrage opportunities. When the price goes above the peg you want people selling, below you want them buying it up.

What makes HBD attractive is that it is truly Defi and lower risk than other stable coins.

And thus is outside the control of the regulators.

Posted Using LeoFinance Beta

0
0
0.000
avatar

thanks, there is no way to get pure HBD on exchanges like Binance?

0
0
0.000
avatar

It is a great way to use the pHive liquidity pool as utility to help with the shortage we will face. As we do need more HBD to go around. People can still want it but when it is not available… they can’t.

Posted Using LeoFinance Beta

0
0
0.000
avatar

As long as this loop will lead to more stability for HBD, then the future of HIVE is beautiful. I anticipate a $5 HIVE sooner.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It has the potential to do so. Bring more stability.
We have to watch this space 😉 exciting times ahead!

Posted Using LeoFinance Beta

0
0
0.000
avatar

My eyes are so glued. PolyCUB and Hivestats are pinned tabs on my browser. I get updated on the changes that occur.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I have loads of tabs open too at the same time hahaha

Posted Using LeoFinance Beta

0
0
0.000
avatar

My minimum is 40 tabs. However, about 7 are pinned and they're all Hive related.

Posted Using LeoFinance Beta

0
0
0.000
avatar

You sound like me, I was talking earlier about it to somebody… I counted them just for fun.
I have over 60 open at the moment hahaha but just a few hive related. Other stuff is research for other things, and things I need to get back too.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I understand in theory how this is beneficial, but I still need to see it happen. I think a lot of times we speculate on what should happen and then it never comes to be. Especially in crypto. Maybe it has made me a bit jaded. Either way, offering more ways to hold Hive is never a bad thing I guess.

Posted Using LeoFinance Beta

0
0
0.000
avatar

How do you see it in theory and not in practice? That confuses me.

Will people do it? That remains to be seen. However, many were fearing massive powering down of HIVE to fill the HBD savings. That didnt happen.

There is no way to see what people will actually do. However, the door is there. Are you going to utilize what was spelled out? That is the more important question.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I don't have the funds right now to do much of anything, so no probably not. Perhaps once my Polycub starts unlocking I might be able to. It's not that I don't think it is going to happen, but until I see the price of Hive and Polycub pumping to the moon because of all the increased volume and liquidity, I am going to be cautiously optimistic.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Either way, offering more ways to hold Hive is never a bad thing I guess.

This really sits well with me as long taking out one's liquidity is possible at any time incase an investor seeks to take profits from a bullish market.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I think in the long run this will make that not as important. Removing liquidity should never be a problem it's just how much of a loss (or gain) when you do. Having more liquidity should keep one large player from wrecking the market. I could be wrong though.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I don't think I understand the "p" version of Hive and HBD to be honest 🙈🙈

0
0
0.000
avatar

It is the wrapped version on Polygon.

Hive and HBD are resident on the Hive blockchain. Hence if they are to exist on another chain, there has to be a wrapped version of it (effectively a new token). It is why each pHBD out there has 1 HBD in the @p-HBD wallet.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I believe the trading of pHIVE is going to help more people to know about Hive. Is going to help to create alot of HBD.

Posted Using LeoFinance Beta

0
0
0.000
avatar

HIVE will benefit tremendously from all this increased HBD liquidity and demand. @hbdstabilizer will see to it.

0
0
0.000
avatar

Well,pHive looks to me a new type of token in the chain.There you made a lots of critical calculations out of the system involved in financial transactions going out and will be throughout the chain.

Wow! I got amazed to see how you hold that much insight at the blockchain.Specially I have quite noticed that some of your predictions turning out true in the recent times, just like, the prices of coins and behaviour of the market, and relations.

Good to read those views.

0
0
0.000
avatar

Congratulations @taskmaster4450! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):

You received more than 1330000 upvotes.
Your next target is to reach 1340000 upvotes.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Check out the last post from @hivebuzz:

We have finished upgrading our website
Our Hive Power Delegations to the April Power Up Month Winners
Feedback from the May 1st Hive Power Up Day
0
0
0.000
avatar

Every time you publish a new post, I learn something new. I'd like to think I'm not alone in this. Thanks for providing us with excellent blockchain material, sir @taskmaster4450 .

0
0
0.000
avatar

It is interesting how things turn out and how fast there is a progress in the development of the PolyCUB infrastructure. Glad to see the pHIVE -POLYCUB pair roll out.

QUESTION:
Since the two tokens here are volatile, how will a price change in either or both affect the pool mechanics?

Posted Using LeoFinance Beta

0
0
0.000
avatar

I don't really know if people are looking at pHIVE as a way to get HBD. From what I know, the addition of the pHBD pool didn't really generate much more HBD into the savings account. So if they were already on Polygon, why wouldn't they just enter the pHBD/USDC pool? I know the use cases by application could bring it up but they haven't come out yet and we have no idea how much demand it brings.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I think pHIVE really levels HIVE up as a crypto asset. From the inside, we know that HIVE is a powerful utility token that can be used to stake and earn curation rewards, etc...

From the outside, people just see the name HIVE and think it's just another random token.

Now that changes. HIVE can now be used in DeFi outside of the Hive ecosystem. There definitely needs to be marketing around this.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I am sure this will be the start of many pools for the future if these do well. I can recall talks about RUNE and LUNA joining the CUB family like what we have done with Polygon.

Posted Using LeoFinance Beta

0
0
0.000
avatar
(Edited)

Even though there is a 20% return, we only have 9 million HBD as part of the free float.

I don't know if you saw the most recent stats on HBD from dalz, but actually, the amount of HBD outside DHF reduced by almost half a million (0.4m) during April. from 9.4m to 9m.

0
0
0.000
avatar
  • pHIVE liquidity pool pays out 1,000 POLYCUB
  • POLYCUB is converted to 4,000 pHIVE
  • pHIVE is bridged to HIVE
  • 4,000 HIVE is swapped on Internal Exchange resulting in 3,000 HBD

Seems like the best way to move forward for maximum returns on your Hive stake. 🤑🤑

Posted Using LeoFinance Beta

0
0
0.000