Why HBD (Hive Backed Dollar) is the Future of Community-Driven Decentralized Stablecoins

Hello Hive Fam,

The demand for stablecoins in the crypto market is growing, and I believe that is why we need a coin where a single entity should not control it; instead, this should be a community-driven stablecoin. I hope most of you are aware that we have two types of cryptocurrency in the market: one is called a crypto stablecoin, and the other is a regular coin. Stablecoins are the ones that are backed by some fiat currency in value, and this is why the value fluctuation does not happen with stablecoins. I mean it happens sometimes, but it is too minimal that we can ignore it because we hardly see it as a few percent. Now, if I talk about the other coin, for example, Bitcoin, then such coins are highly volatile in value, and value fluctuation happens with a bigger percentage, which is a plus because that is what we all expect to happen with such coins. So technically, this is the difference between a regular coin and a stablecoin. The stablecoin I am going to talk about in this blog is HBD, which is known as HIVE Backed Dollar.

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HBD -A decentralised and community-driven stablecoin

I know a couple of stablecoins that are very popular in the market, but they are all managed by a company, which means that the company can't drive it the way they want, and the community does not influence it. In other words, we can say that it is a centralized coin that is part of the market, but we don't know how transparency is maintained and how the asset backing is also managed for the coin. Generally, decentralisation is encouraged in the market. So in this scenario, investing money in a coin that is completely owned by a company is risky, and that is where HBD turns out to be I stable coin which is entirely community-driven.

There is no company managing the HBD stable coin, and there is no entity behind this, which means it is a completely community-driven stable coin. When the power is in the hands of the community, then things are generally more transparent, and nobody can manipulate the system, which is what makes HBD a stable coin more powerful and worth investing since we know that manipulation is not possible. There is also a mechanism that makes sure HVD is valued at the US dollar price, so when there is more buying for HBD, then that mechanism starts, and that is the plus about the HBD.

15% APR in Savings

This is one of the best benefits of HBD coin that I can say loudly, and I don't know any other stable coin in the market that can offer such a massive 15% APR with just three days of lock-in period. Sometimes I see that a few exchanges offer higher APR, but that is for a very limited time, and also, most of the time it is for a fixed time duration, but with HBD, there is nothing like that. Anyone can move the HBD to savings in the wallet, and it starts generating fifteen percent APR, which is paid every month in the form of HBD. You know what, this is such a great opportunity to earn with such a stable coin, where we do not need to worry about the volatility. It's way higher than any bank account, and generally the banking products offer an interest of up to 6-7% but that also comes with the lock-in period, which is for a few months or maybe a year, but here there is no such criterion to be followed.

HBD for Merchant Payments

There is a programme run by @distriator, and this encourages the use of HDB for making payments to merchants. You can make the payment through HBD and buy anything in some of the countries, and it's like you can pay for your coffee using HBD, which is another use case that I think is going to grow a lot in the coming months and years. We have to agree that if any cryptocurrency gets more adoption as a payment option, then the massive adoption is going to happen, and the same is happening with HBD, so you can think of it as how the future of HBD is going to be bright.

No KYC and Not Regulated and Smart Contracts

This is not a coin that is regulated, and its transfer does not require any sort of KYC, so you do not need to go through this process to buy the HBD coin. It gives you more power because, anonymously, you can own any amount of holdings, and you do not need to worry about the KYC or your identity. Even though there is a development on EVM where the HVD is going to be available on non-custodial wallets. @vsc.network and they are building smart contracts where you can earn with HBD and even keep it in liquid, but this project is under development and should be live soon.

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So overall, HBD is one of the best decentralised stablecoins that offers a bunch of opportunities for investors, and also, there is no need to worry because no one controls this coin. You do not need to follow any KYC or AML process, which makes it an even better option for anyone to get invested, and obviously, you cannot ignore the earning potential that you can earn 15% APR with the lock-in period of just 3 days. Looking at its overall development through the smart contract. It is going to be even more powerful. I believe that now there is no reason that can keep you away from investing in HBD, and I believe in this, so I also try to accumulate more HBD in savings, and it's a long-term journey for me. Thank you!

Some images taken from https://x.com/vsc_eco

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