What we all saw take place over the past 24 hours with LUNA and UST was an incredible thing to witness. It appears to be a coordinated attack on the UST peg in an effort to kill the Terra ecosystem by de-pegging their algorithmic stablecoin.
Stablecoins have - without a doubt - become one of the cornerstones of crypto. Most of the big players are indexing heavily in stablecoins, even more so than Bitcoin in many cases.
For many reasons, stablecoins offer us an eye-opening opportunity. To freely, effortless and borderlessly deploy capital across many blockchains, yield opportunities and lending structures.
Most stablecoins are centralized and rely on a third-party to maintain their peg. UST quickly rose to become one of the most utilized stablecoins in the entire industry - and a decentralized, aglorithmically-secured one, at that.
I believe UST will re-peg itself and come out of this stronger than it went in. Regardless of what happens, HBD now has massive shoes to fill. HBD is one of the longest standing algo-stablecoins in the entire crypto industry... and almost nobody knows about it.
The opportunity that HBD has is truly amazing. We could see HBD become one of the most utilized stablecoins - quite like UST - with just a little TLC. The on-chain savings rate being increased to 20% APR was the first move in this direction and this is what has seeded the ground for the next step.
The next evolution of the Hive blockchain has arrived. We've all called this ecosystem by many different names. One of my favorites: the blockchain of opportunity.
4 years ago, all you could do on Hive was blog and earn crypto. Today, there are dozens of highly utilized dApps that offer the ability to use DeFi, play-to-earn, move-to-earn, blog, microblog, ... There are dozens of ways to use Hive in your everyday life.
With the 20% on-chain savings rate, now everyone on Hive has a decentralized bank account that pays them 20% to save their money in it. That's powerful.
Why Stop Here?
Why stop here when we could attract billions of dollars in capital from whales that jumped into places like UST. When the Anchor opportunity came about and started offering 20% fixed interest on UST, the entire Terra ecosystem exploded - shooting LUNA to the top 10 cryptos by market cap list in a matter of months.
HBD has the potential to do this for Hive and I think all of us on here want this to happen.
The Last Remaining Piece - Liquidity
In my opinion, the final piece of the puzzle is the onramp and offramp to HBD. Right now, it is incredibly difficult to use, understand and deploy capital into HBD. I believe that all of us on Hive have been familiarized with it for years so we don't see quite how hard it is. In my process of trying to bring whales into Hive to buy a large stake in HBD and save it on-chain, they have told me their concerns about onramp liquidity and most importantly; offramp liquidity.
pHBD went live about 3 weeks ago. We're nearing $400k in liquidity on pHBD-USDC on the Polygon network. The trading volume has exceeded our expectations: on some days, trading over $70k on just a $400k liquidity pool.
This nearly 20% utilization of the liquidity pool in a single day creates a massive opportunity for anyone pooling pHBD-USDC. The average trading fee APR is over 5% which is not included in the APY display on https://polycub.com/farms.
This means that LPs are earning well over 40% APY for wrapping HBD into pHBD and providing pHBD-USDC liquidity on the Polygon network.
We're not shilling pHBD constantly for no reason. In our opinion, building a $5,000,000 liquidity pool for pHBD-USDC is vital to the adoption of HBD. The onramp and offramp liquidity that a pool of that magnitude provides is astonishingly important.
DeFi whales understand Automated Market Makers. They understand yield farming. They understand liquidity pools.
pHBD-USDC has already onramped several DeFi whales and it will onramp hundreds more. We need your help to keep growing the liquidity on pHBD.
The liquidity is about to cross $400k and it grows every single day.
This is not purely out of altruism. There are a lot of reasons why we want pHBD to succeed. One of the most fundamental is that the pHBD-USDC pool offers PolyCUB 4 methods of value accrual.
As we've seen since the launch of pHBD, POLYCUB has been steadily growing as well. It's accruing value from:
- Wrapping Fees (HBD -> pHBD and pHBD -> HBD)
- On-Chain Savings of Oracle-Held HBD
- Internal Arbitrage
- Governance Utility
These methods of value accrual are generating tens of thousands of dollars in revenue for the PolyCUB protocol. This is massively important for the longevity of PolyCUB but it is also massively important for the adoption of HBD.
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