Why you need to add liquidity to the pHBD-USDC pool

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Photo by @leofinance

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The recent increase in the interest rate of HBD (Hive Backed Dollar) from 12% to 20% has sparked some interest in HBD. But what seems to be a deterrent is the difficulty to acquire and sell large amounts of HBD at a time. There's no listings on any exchanges except upbit and bittrex which I don't really know much about, and no decentralized exchanges or swaps. The only place to get HBD Is here on hive. And even with that you can only get a couple 100 at a time.

So let's say a whale wants to invest $1,000,000 in HBD he'd place an order on the market that would take a very long time to fill. Or he'd have to buy hive and wait 3.5 days for the conversion which is really annoying.

Now the leofinance team saw this problem and decided to come up with a solution to it. And that solution is pHBD.

What is pHBD?

Now pHBD is simply a wrapped version of HBD that the leofinance team created on the polygon network.

How does pHBD solve the problem?

Now the leofinance team created pHBD to be like an outpost for HBD and they also created a liquidity pool with USDC which is the second most valuable stable coin in terms of market cap.

The pHBD-USDC liquidity pool will help to make trading of HBD much easier which will make it much more attractive and draw attention from even those outside the hive ecosystem. And the more people that come into the hive ecosystem the better for everyone.

Why do I need to add liquidity to the pHBD-USDC pool?

First of all by adding liquidity to the pHBD-USDC pool you're making it easier for transactions to take place. And as such, more people will be able to invest into HBD and in extension the entire hive economy.

Other than that there's also a 58% apr which is greater than the normal 20% that you get for stacking HBD in savings. And since you're adding liquidity to stable coins there's no loss.

Conclusion

I think that the pHBD-USDC liquidity pool is a great idea to bring in more investors into the hive block chain by making HBD transactions smoother and in the long run could help in making hive mainstream.

If you want to add liquidity to the pool, I suggest you check out this blog by @l337m45732.

Also if you are a newbie and you have no idea what adding liquidity is all about I suggest you check out this post I made a few weeks ago. Though it majorly focuses on hive engine tokens, it'll give you an idea of what adding liquidity entails.

_{Disclaimer: This post is not financial advice but simply how I feel towards the project. Always do your own research before investing.}

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