Hive Challenges Anchor Protocol by offering flat 20% APR on it's algorithmic stable coin HBD
Hive Challenges Anchor Protocol by offering flat 20% APR on it's algorithmic stable coin HBD
You might be mistaken by believing that Terra (Luna) Network was the first blockchain to develop an algorithmic stable coin in the decentralised world. In fact it happened many years ago around the time time Alt coins and new protocols began gracing our web3 world. Although it was introduced on the blockchain which won't be named it lives on today and quite successfully has for years on Hive.
Although Hive was mainly known as a decentralised blogging network it has continued to grow with new and emerging projects launching off the platform which has one of the lowest transaction fees (many a free!) in the decentralised world.
But we are now seeing even more projects being developed on Hive due to it's ease of use, accessibility and low fees and unique governance structure being dPoS which is what kept me on Hive.
What is dPoS?
I won't go to deep into it because I want to focus on a more pressing issue which we will get to below but for those just joining us and wondering what dPoS is and why it is so great. The answer is simple, you get a say in the blockchain no matter how small you are.
As Hive blockchain participants with staked hive you get to vote for 30 representatives which act on your behalf. You can reach them and ask them questions about the blockchain, learn from them and have your voice heard in governance decisions.
These elected representatives are called witnesses and by gaining your support they operate the blockchain and as validators receive rewards for executing transactions. But, they're a little more than that on Hive as they ALSO need to know how to code and if voting you are going to want to vote for people who, if Hive has an issue can repair the network.
You also don't give them your tokens in the traditional way of validating the network, you just vote for them and you can use your Hive tokens how you please.
3Speak.TV on Hive
Also available on Hive and included in your account creation is 3Speak.TV which is a decentralised online streaming site much like that mainstream one that's red but a lot better because you can earn a lot easier and wealth is distributed between the community AND creators.
A new age project for a new age sector one where all share in profit not just a handful of people.
Hive Gaming
Due to it's virtually FREE network Hive is great for game developers and as we all know Splinterlands remains one of the Cryptosphere's greatest online gaming accomplishments and is often featured in many mainstream news sites.
Decentralised Financial News
By now, if you are reading this you would be familiar with WEB3's number 1 decentralised financial news site Leo Finance which has also been built and developed on the Hive Blockchain. That's right, anyone can build on Hive and create their own projects and protocols.
So as you can see, Hive continues to grow and develop into a strong, vibrant and successful blockchain. But the story doesn't end here, Hive is about to challenge UST.
Hive implements 20% APR on Hive Backed Dollars
We're all familiar with Anchor Earn which enables people to earn the most common 19.50% APY on staked UST which has been a great success despite many people stating that it will "run out of UST" which makes no sense because the more UST there is, the less LUNA there is.
It is an Algorithmic stable coin it literally won't run out!
But now Hive has entered the game lifting their HBD APR to a whole 20% which is also created through algorithms built into the Hive Blockchain code. Minting and Burning occur in the same way and similar to Luna HBD will never run out and neither will Hive.
APR VS APY
Once advantage UST does have is that it is a compounding savings account meaning you are constantly being paid out and it is adding to the new interest.
HBD is also compounding and adding to HBD savings will earn you more but interest is earned per month based on what you have put in. Once you claim your awarded HBD you can add it to your savings and increase your ROI.
We can already see this latest development resulting in many people adding their Hive to HBD savings and no doubt once news breaks of the recent changes a lot more users will be looking to diversify their portfolio by accessing that 20% APR on Hive Blockchain.
Image sources provided supplemented by Canva Pro Subscription. This is not financial advice. Readers are advised to undertake their own research or seek professional financial services.
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Hopefully we can get the word out, because it is a great advertisement
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Yup, time to write and share to help spread the news!
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STOPCheck out the last post from @hivebuzz:
I think one disadvantage of HBD right now is liquidity and I doubt UST has that issue given how fast people can burn LUNA for UST. The same process on Hive takes 3.5 days and there is a 5% charge to convert. So while HBD is nice, I don't think very big players can get in that easily.
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It certainly looks like an exciting (and enticing) development but I'll be very curious to see how it plays out in terms of people wanting to stake Hive and curate when they can earn an easy 20% by putting HBD in savings.
Not suggesting it will drive down the price of Hive, but I do wonder if it will negatively affects the content creation side in the sense that if people are powering down to buy HBD, where's the staked HP to create upvotes going to come from?
Again, only time will tell...
=^..^=
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I'd anticipate a significant dump over the next 13 weeks as Hive Engine tokens are already declining. But that dump will be short lived and a much needed one to shake up redistribution of Hive power.
Either hold tight or be prepared to buy more Hive. This move could potentially see Hive break the $20 - $30 mark in the next 5 year run
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Anchor have been marketing weapons.
The mainstream crypto media have absolutely lapped up the narrative that they've provided and this has been a major contributor to the success of the protocol.
However we've yet to see a single news article produced by anyone on the fact that HBD now offers a similar return.
Not a single one!
This is the next problem we need to solve.
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