Evening
Stable coins are a tool of extreme utility in the uncertain crypto world. They serve as a nice shelter especially in times like these with heavy bears lingering. But fall of Terra ecosystem along with its stable coin UST, has shaken the confidence of people pretty badly in stable coins and crypto currencies.
I lost some of my UST savings when Terra ecosystem collapsed. And now it turns out, I am reluctant to trust in even some of the biggest and respected names in the industry e.g. USDT or USDC. And in distress where do we run...we come back home. So comes in play our own stable coin, HBD.
As of now, HBD offers a nice 20% APR on savings. And what better place to invest in during uncertain time like these and earn those juicy APRs in the process, double utility. I have put all of HBD into savings and am waiting like others for the storm to pass out.
And when talking about HBD, PolyCub's pHBD-USDC pool naturally comes into mind. pHBD-USDC pool is offering 20.18%% APR paid in Polycub. There is a 30 days lock period for farming rewards harvesting.
Now lets compare that with HBD saving returns, 20% APR paid in HBD claimable every month with unstaking period of 3 days.
So, the question is why would anyone put their money into pHBD-USDC LP when same kind of offer is available on Hive chain.
Current liquidity of $324,848 in LP is not enough to avoid slippage during large swaps by any outsider stable coin whale. So, for liquidity in the pool to grow HBD must flow from Hive chain. But as the returns from LP and HBD savings are almost the same, so there is not much impetus to move HBD to LP on Polycub.
Polycub follows decentralized governance approach in deciding reward multipliers of LPs including pHBD-USDC, meaning the community decides how much of the farming rewards gets dedicated to pHBD-USDC LP. But may be some intervention is required and special provisions should be adopted to encourage movement from HBD saving to pHBD-USDC LP.
As far as I am concerned, I can wait for the next governance vote and vote for pHBD-USDC LP to get a bigger multiplier.
Thought?
Posted Using LeoFinance Beta
