Higher Interest Rate on HBD + DEFI swap pool

in LeoFinance2 years ago

@smooth brings it up to Increase the HBD interest rates to 7%. I like the idea. Because with the upcoming hardfork, we are able to convert Hive to HBD and vise versa.

The Interest rate will payed after the upcoming hardfork only to the funds are in savings. This is because exchanges should not earn interest on user funds.

General a good idea.

To the 7%. I think it is a good start, but it is only a start.

What I like to see is a Liquid pool for Hive/HBD.

And no to low (around 3%) Interest rates in saving account and 7%-10% interest rates in the liquidity pool in Hive/HBD. The pool should be onchain and allow swaps like on uniswap.

This Tool should come in addition to the current marketplace.

Why is this so awesome?

First higher liquidity = higher prices long-term.

Super nice opportunity for one of the highest returns on Stable coins.

And best of all, allows Investors to invest in hive without play the curation game. Awesome.

If you add liquidity and earn interest on it, it benefits hive + the investor can stay liquid.

Stable the price, allows larger purchases of Hive at ones for Investors.

We can allow autocompound. On ETH and BSC this is Inovative. We can do it because no fees :)

Longterm with liquidity pool

I would expect fast a high demand for HBD, this should end up in high demand for Hive, which gets converted to HBD.

Ends up at a higher price of Hive.

Very very good.

@smooth would be awesome if you can bring up this talk to a larger group of people, because i think this could be a big thing :)

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Tribaldex.com has a liquidity pool for hive/hbd is that similar to what you are referring to? But your idea is to add interest as rewards for liquidity providers. Right?.good idea.

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is not the same because it should be onchain and offer interest out of inflation. This would be the most decentralized defi protocol on stablecoin in crypto with super nice rewards.

The diesel pools are not the right solution for it.

But thanks you point it out with tribaldex :)

As @notak pointed out, the diesel liquidity pool is available and is already a decentralized "on chain" solution. It is built directly on top of the hive engine, being as close to a uniswap like liquidity pool offered on hive currently.

I don't think that the inflationary component of Hive should reward liquidity pools directly, as that really isn't the primary purpose or goal of the hive ecosystem. Unlike say balancer, which was primarily created as an AMM protocol, Hive was designed to be a social media/content/community/gaming platform. Not that one can't exploit the hive blockchain for use as a defi platform in addition to its primary goals, but inflationary components in my opinion should reward the primary goals of the ecosystem. Right now, that includes rewarding those who secure the protocol (hive witnesses) and those who engage in its primary purpose, decentralized social communities.

If Hive was to offer some sort of liquidity rewards, I would say that it should be in addition to the inflationary component, such as through a governance proposal. Anyone is able to open a proposal, if say @smooth or yourself would want to put this idea and see if the community agrees with the development of such a pool with inflationary rewards or otherwise.

You did bring up a lot of good ideas though and kudos on putting it for to the community. Cheers and enjoy a !BEER . My newer witness could also use some votes as well, if you have any witness votes left! I also use my node to help develop future improvements for the hive ecosystem. If you are willing, you can vote here and it would be greatly appreciated: https://vote.hive.uno/@sicarius

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The point is IMO, we pay now 3% for holding HBD and increase it to 7%. That's cool because it makes HBD more stable because of the natural demand for them.

IMO to increase the benefit for the community is to add a liquidity pool onchain that uses these rewards for it. Even increase it a little bit.

It would remove Hive from the market and convert it into HBD. Another use-case that supports higher prices.

Also, this liquidity reserve that comes up here, supports larger buyers and Investors. Liquidity is the Killer tool for every Asset.


Hey @urun, here is a little bit of BEER from @sicarius for you. Enjoy it!

Learn how to earn FREE BEER each day by staking your BEER.

The data I have seen suggests that 3% isn't attractive enough to investors given the possible APR using HIVE or passive income tokens. So I think increasing the percentage is good but I am not too sure about the liquidity pool aspect or how it would work in a good enough way.

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simple like every liquidy pool based on smart contract. Put it both assets and the ratio = price.

As a reward earn up to 10% interest on it.

Would be the ultimate stable coin. Think about it would be layer 1. The most secure stable coin/ defi in crypto.

And btw, the most secure defi contract to for stable coins

The unicorn marketing pitch.

Fud immune and scaleable :)