Introducing Hive Backed Dollars (HBD) - the stablecoin that offers a smooth ride on the waves of the crypto market. Built on the decentralized Hive blockchain, HBD maintains a steady value of $1 USD, making it the perfect digital currency for those who want to avoid the turbulence that often accompanies other cryptocurrencies. But what makes HBD so unique, and how does it differ from other stablecoins? Let's dive in and explore the world of Hive Backed Dollars.
How Does HBD Work?
HBD is "backed" by the Hive network's ability to convert it into $1 USD worth of Hive. The conversion process is collateralized, which helps to maintain the stability of the currency. There are constraints on HBD creation within the blockchain rules to help keep the Hive economy healthy.
Top 10 Reasons Why HBD Adds Value to the Hive Blockchain
- Stability: HBD is designed to maintain a stable value of $1 USD, making it an ideal digital currency for users who want to avoid the volatility that often accompanies cryptocurrencies.
- Decentralization: The Hive blockchain is a decentralized platform, which means that it is not controlled by any central authority. This makes HBD a truly decentralized stablecoin.
- Speed: The Hive blockchain is designed to be fast and efficient, which means that transactions involving HBD can be completed quickly and with low fees.
- Accessibility: HBD can be bought and sold on a variety of cryptocurrency exchanges, which means that it is easily accessible to anyone who wants to use it.
- Security: The Hive blockchain is built on a robust security framework, which means that HBD transactions are secure and safe from hacking and other malicious activities.
- Savings Account: Users can earn interest (20%APR) on their HBD savings by placing them in a Hive savings account. This is a great way to earn passive income on your digital assets.
- Collateralized Conversion: HBD can be converted back into Hive using a collateralized conversion process, which helps to maintain the stability of the currency.
- Liquidity: HBD is highly liquid, which means that it can be easily converted into other cryptocurrencies or traditional currencies.
- Predictable Price: HBD is designed to maintain a stable price of $1 USD, which makes it an attractive digital currency for users who want to avoid the volatility of other cryptocurrencies.
- User-friendly: HBD can be easily used by anyone with a basic understanding of cryptocurrencies. It is a simple and user-friendly digital currency that can be used for a variety of purposes.
How to Get HBD?
There are several ways to get HBD, including:
- Earn HBD by posting popular original content on Hive
- Purchase HBD on external exchanges like BlockTrades, Bittrex, or Upbit
- Exchange HIVE for HBD using the internal market, or convert them in your wallet.
How does HBD work?
HBD is created through two processes: minting and burning. To mint new HBD, users deposit Hive into a collateralized debt position (CDP) and borrow an equivalent amount of HBD. They can then sell the HBD for US dollars or other cryptocurrencies or hold it as a stablecoin. When users want to reclaim their Hive collateral, they can burn the HBD they borrowed and receive their Hive back.
The value of HBD is maintained through an algorithm that adjusts the interest rates of the CDPs based on market demand. If the demand for HBD increases, the interest rate of the CDPs will increase, making it more expensive to borrow HBD and incentivizing users to burn their HBD to reclaim their Hive collateral. If the demand for HBD decreases, the interest rate of the CDPs will decrease, making it cheaper to borrow HBD and incentivizing users to mint new HBD.
What are the benefits of using HBD?
Overall, using HBD provides users with a range of benefits, including stability, high returns, liquidity, security, and accessibility, making it a promising investment option for users on the Hive blockchain.
Zero fees
All transactions on the Hive blockchain, including Hive Dollar transfers, are free of charge. This means that users can send and receive HBD without paying any fees.
Quick transfer time
Hive has scheduled blocks every 3 seconds, so Hive Dollar transfers reliably take 3 seconds or less to be confirmed on the Hive Blockchain. This makes HBD transfers faster than many other cryptocurrencies.
Stake for APR
Users can stake their Hive Dollars and earn interest at a rate that is determined by the consensus of the Hive Witnesses. Currently, the interest rate is 20% annually. This provides users with a way to earn passive income on their HBD holdings.
Decentralized
Hive Dollars are natively on the Hive blockchain and are backed by Hive collateral that can be redeemed using a native smart contract. This means that HBD is a decentralized stablecoin that is not controlled by any single entity.
Non-custodial
Hive Dollars are transferred with the private keys of a user's Hive account. Users hold their own keys, and no individual or organization has access to or custody of the collateral that supports HBD. This provides users with greater control and security over their HBD holdings.
Community Collateral
Hive Dollars can be converted into Hive at any time using the HBD Convert smart contract native to the Hive Blockchain. Collateral is held virtually by the entire community. This means that the value of HBD is backed by the entire Hive community.
Time-lock security
Hive Dollars can be staked as "savings," which adds a layer of security. If a Hive account becomes stolen, a user has time to intervene, lock out the attacker, and cancel their withdrawal, preventing loss of funds.
Native HIVE/HBD Exchange
Hive has a native Decentralized Exchange (DEX) with a HIVE/HBD trading pair. As with other transactions, exchanging Hive Dollars for Hive has no fees on the native DEX.
Supported by Decentralized Hive Fund
The HBD Stabilizer is a trading bot funded by The Decentralized Hive Fund (DHF), an autonomous organization run by the Hive community with over $25.6 million dollars in capital at the time of writing. The HBD Stabilizer trades HBD on the internal market to ensure the stability of the HBD price.
Stablecoin pegged to the USD
Hive Dollars are a decentralized stablecoin pegged to the United States Dollar (USD). This means that the value of Hive Dollars is pegged to the USD and users can hold a stable asset that is not subject to the volatility of other cryptocurrencies. This makes HBD an attractive option for users who want to hold a stable asset on the Hive blockchain.
Conclusion
HBD adds tremendous value to the Hive blockchain by providing users with a stable, secure, and efficient digital currency that can be used for a variety of purposes. Its stability, accessibility, and predictability make it an ideal choice for users who want to avoid the volatility of other cryptocurrencies. Start exploring the world of HBD today and experience the benefits for yourself
- Hive blockchain website
- Hive blockchain whitepaper
- HBD market data and charts
- Hive community on Reddit
- Hive blog platform
- Hive wallet
- HBD savings account
Yea @reko you said it all, i had been earning through saving my HBD.
yeah just wish I had any money to invest in Hive! :D
Thank you for this amazing info
it is indeed amazing info @loadedideas! With 20% APR and other stable coins going down this is a very strong selling point for the Hive blockchain. One of many! :D