I love a stable coin, I love Hive, and I love a liquidity pool with a decent APR.
These are the three reasons I've been stacking a little CENT over the past months.
Although in fairness I did sell off a fair bit when the CENTG token was liquidated.
But I just bought a whole lot back again, because...
- 1 SWAP HIVE = 460 CENT
- $1 = 1290 CENT
So it's trading at approximately a 70% discount, if you believe it can maintain its peg at some point in the future!
I didn't buy a lot in the grand scheme of things, only around 40 Hive worth which is something like 20K CENT.
The thing is I only powered up 150 of that, and added the rest to the liquidity pool with some extra Hive...
IT does have a rather tasty return, and I was the Power Up post prompted me to go back into it, having removed about half my position on the liquidation of CENTG.
CENTG was the governance token, although I am not actually sure it ever facilitated any governance? All people did with it was sell it, I think that's what I did, so fair play getting rid of it.
What is CENT...?
It's another little Hive-Engine project, the aim of which is 'simply' to keep the CENT token pegged to around $0.01.
The origins post by @andolu is here - Cent Token White Paper.
The mechanisms whereby CENT is kept at around one cent are varied, but primarily the usual suspects of...
- Burns
- reducing the issuance rate of new CENT
- buy backs.
And if CENT goes above a cent, well who cares, it's not really a problem, right.
As far as I can tell all of this is done manually, orchestrated by @andolu.
Two ways of earning CENT....
My two faves are that loverly liquidity pool above and then you can use the CENT tag to earn CENT token from writing, they have their own front end.....
Biggest pro and biggest con....
The biggest pro has to be that it's actively managed and @andolu is prepared to try out new things, and scrap them if they fail, such as with the CENTG token.
And the biggest con, well it's the single point of issuance, as with all HE tokens, it's a massive risk.
But hey, it's worth a PUNT
Hive-Engine pickings are a bit thin ATM, so CENT's one of the few that I'm prepared to stack a little of.
And hey, you can be the man for just a few dollars. I shit you not, people are actually posting about $2-3 Power Ups.
I'm not sure why that's the kind of man you'd want to be, but there you go!
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