HBD is a Decentralized Stablecoin with Impressive 20% APR

HBD which is known as Hive-backed Dollar is the stablecoin on the Hive platform. In the last few years, we have seen how things are changed for stablecoins and a lot of people are now considering them for holding. There are so many stable coins available and most of them are pegged with USD. There are some other options as well in the market but the majority of stablecoins are packed in USD and they are managed by different companies. For example, USDT is misused by Tether and it is the biggest stablecoin in the crypto market with a great market cap which is on top even now when the bear market is going on.

The majority of stablecoins available on the crypto market are centralised because they are managed by an entity and that has got complete control of the stablecoin but some coins are known as decentralised stablecoins. DAI is one of the coins that is a decentralized stable coin and now even HBD is in the same category. decentralisation is good because things are managed as a whole and there is no single entity managing all the funds which means we can rely on such projects provided all the required infrastructure I have already built.

HBD is a decentralized Stablecoin

In my opinion, HBD is a decentralised stablecoin because it is not managed by any company or a single entity instead it is completely driven by technology and supported by the community. This stablecoin has proven in the past that even though the market has dropped drastically a few times but this coin was able to maintain its dollar value with the least fluctuation. Fluctuation is bound to happen in price and it also happened with other stablecoins that are centralised but the important part is how soon it is moved back to its peg range. Even HBD went below $1 many times but it recovered faster as there is an automated mechanism that works to bring it back in the $1 range. This coin is not managed by anyone but there is a process that runs to ensure that HBD is close to $1 and this should stay here. This also works to control the pump as much as possible so that people don't get extra benefits by planning some manipulation.

20% APR on Saving

Here comes the interesting part and with this one can earn 20% APR on holding HBD in savings. There is an option called saving in our wallet so if we move any amount of hbd in the saving option then it starts generating the 20% APR. This amount is very good because I don't think any other stablecoin can offer this much as of now. there was a time when UST was providing the same but we know that what has happened with Luna so let's not talk about it. The good thing is that we just need to lock our HBD tokens in savings and the unlock period is just 3 days.

I had some HBD in savings but last week I took out all as I was expecting a price dip on the hive and for that reason, I took out everything I had that time. The hive price dropped and I converted all my HBD to HIVE which is good because I got more hive. I got over 2k Hive for my HBD and now I am going to hold this HIVE as I will convert it back to HBD once the HIVE price is up. This will help me get more HBD and the process is super easy. Its about making the transaction at the right time and having some patience to get more profits.

Its always good to earn 20% but if I can get more this way then its always a better idea. I keep on doing this from time to time whenever I see some opportunity for conversion between hbd to hive and vice versa. A lot of people do the same to make the most out of the available opportunity from time to time on this platform and I believe this is good.

HBD listing in exchange is one of the problems. It is listed on a few exchanges including Ionomi and bittrex but there is no liquidity so ultimately this is not effective. We can say that it is available only in the internal market and available for the people who are part of the hive ecosystem as of now. Just imagine if this is listed on some exchanges then it will attract more trading volume and probably that will also bring more demand for hbd which will lead to more demand for hive also. We have limited quantity for HBD so when it is short then the hive will be used to buy more HBD and this is good overall for the coin. Overall I believe the exchange listing for HBD can be a good idea and hopefully, this happens soon so that people outside the hive can also be part of it as it is a good alternative for stablecoins in decentralised nature.

Thank you

Posted Using LeoFinance Alpha