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does it generate yield ?

yeah, it's the same apr as HBD savings on Hive but you get sHBD which is liquid on VSC

and what does the being liquid give me ?

the ability to transfer it between accounts. for now, that's really it. could be used in defi stuff down the road

It does not have the upside SURGE offers and the current APR for $HBD is slightly lower than what SURGE is offering.

correct. it is liquid staked HBD though. that's what you were imagining. for sure i believe SURGE is a better option .