HBD Savings versus pHBD Staking - Which is a Safe Retirement Investment plan?

It is true that when you fail to plan, you'll plan to fail. I met this very friendly aged woman who's retiring from active Civil service and she'd saved up some money which she intends to invest so it can yield some tangible dividends as she'll no longer be receiving salaries.

She's 65 year old Retiree who wants to invest $1,000 in crypto. She's strong and is presently taking a principal role in a school that is doing so well in terms of growth and quality output.

But then, while I was about to give her a response, I remember that One of my financial mentors told me that we should learn to reduce investment risk with our age. That means, as one grows older, he should learn to undertake investment options with lesser risks.

I decided to share this post here to gather some tangible inputs that'll help me guide her aright to invest in a way that would give her tangible returns while also not putting her in the pressure of risk related jerks.

Today, we can see that stablecoins are earning a lot of attention and this is borne of the fact that it poses less risk due to its peg thereby serving the better side of the purpose that banks offer but in a decentralized way. However, the recent happening with LUNA has shown that not all stablecoins are the same. It was awesome to see that while other cryptos and stablecoins were bleeding alongside Bitcoin over the last 3 days, Hive's HBD stayed strong and recovered faster each time it was dumped. This is building more trust factor for HBD and we'
re sure will bring more investors here.

HBD Savings versus pHBD Staking

Hive Backed Dollars (HBD) is the longest standing algo-stablecoin in all of crypto. It is a unique trustless algo-stablecoin that is backed by the underlying value of the Hive blockchain itself and pegged to the USD. The backing of HBD takes the form of an onchain conversion operation that lets HBD be converted to an equivalent USD value of Hive itself. Presently, HBD has a Fixed Savings Rate of 20%, which is the highest APY for a stablecoin and is growing the demand for HBD.

On the other hand, Polygon HBD (pHBD) is a wrapped version of the HBD (HBD on the Hive Blockchain), built on the Polygon blockchain. This was made possible by @LeoFinance's multichain linkage DeFi project. The pHBD-USDC liquidity on PolyUCB has in a great way solved the liquidity problem that HBD had with over $400k size of pool that aids as much as $65k daily transactions. Here is how to wrap HBD into pHBD. Staking pHBD in PolyCUB pool yields as much as 40% APR and 25% vault APY, making a total of about 65% APY. More about pHBD can be read in its whitepaper.

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Saving HBD on Hive gives 20% APY interest in terms of HBD, that is, after every 30 days, every HBD saved on Hive yields 1.6% more HBD and is withdrawable. On the other hand, staking pHBD on Polygon yields about 65% APY in terms of $POLYCUB, that is, after every 30 days, 5.4% more of $POLYCUB is withdrawable.

It is beautiful that pHBD is 1:1 backed with HBD on Hive and that solves the question of hack related loss, since at least 50% of the wrapped HBD is stored in a cold wallet on Hive.

The onus of the question of investing either in HBD or pHBD now lies ion the token received as reward - HBD versus POLYCUB.

Both are a Safe Retirement Investment plan

HBD is presently pegged at around $0.98 to $1 while pHBD has always stayed stronger above $1 with a deeper ;liquidity and lower price slippage in terms of a bulk trade.

$POLYCUB which is a DeFi Asset of the PolyCUB DeFi is priced around $0.15 though expected to moon to a value of $5 as the utility of PolyCUB keeps growing but we can't tell how soon that would be.

I understand that there is a level of volatility attached to $POLYCUB than it is with HBD. But the future seems to hold something quite different for the two tokens. HBD would still be pegged arpound $1 but $POLYCUB has the tendency of reaching $5 from its present $0.15.

Either way you win

There's nothing to fight about. HBD savings and pHBD staking are yours to benefit from. You don't lose. HBD only gets stronger because of pHBD. Whether you gin for 20% on Hive or 65% on PolyCUB, you win. Different blockchains, same stablecoin, different future bonus.

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What is Hive?

Hive is an innovative and forward-looking decentralized blockchain and ecosystem, designed to scale with widespread adoption of the currency and platforms in mind. By combining the lightning-fast processing times and fee-less transactions, Hive is positioned to become one of the leading Web3 blockchains used by people around the world. source

About me...

I am a called teacher, a serial entrepreneur and a Graduate of Agricultural Engineering. Nigeria is my root and a place full of opportunities. I dropped out of a Master's Degree program due to funds, yet I do not regret growing the courage to start my business from the scratch. Today, I've built layers of Businesses on the Hive blockchain in terms of Curation and it's a sustainable passive way of earning crypto while learning.

I am your favourite Hive Tribes Promoter and Curapreneur!
I am @Uyobong.
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