Hive Engine LeoDex Head to Head

5 months ago

Leaving aside my ciriticisms of the USDT stablecoin. This is by far the most popular stablecoin. If we start with fiat it turns out it is cheaper to convert to some other stablecoin and then trade into Hive backed dollars and then eventually go back through a stablecoin than it is to trade from fiat to Bitcoin and then Bitcoin to Hive backed dollars.

Looking into Hive Engine's fees and current market conditions, you take a loss when you put things into Hive Engine, when you withdraw from Hive Engine, and when you trade at Hive Engine (due to spread).

Hive Engine Fees


Deposit	0.75%
Withdraw	0.75%

Now there is no trading fee perse but few setup fair prices in the order book as a passive seller of crypto at Hive Engine. There is almost always some loss when selling one crypto for another. One exception is converting HBD to BUSD. For amounts up to $100, you get ever so slightly better than 1:1.

Amount	Gain
$1	0.4%
$10	0.4%
$100	0.26%

Trading amounts of HBD to BUSD and your gain in dollar value.

If you have BUSD and you want HBD for it, you take about a 1.25% loss in the conversion process with the fees.

Now what about converting USDT to HBD?

Amount	Loss
$1	1.65%
$10	1.66%
$100	1.70%

Converting from HBD to USDT

Amount	Loss
$1	1.66%
$10	1.66%
$100	1.66%

LeoDEx

Now over on LeoDEx, they have neither USDT on Binance Smart Chain nor BUSD. They have things on Ethereum (and they integrate with Thorchain). So the best comparisons are with USDT and USDC on Ethereum and Arbitrum, and DAI only on Arbitrum but also HBD.

So I did a similar chart for HBD and DAI on LeoDEx:

Amount
$1	100%
$10	100%
$100	76%
$1000	76%

Wow that is horrible.

I got similar results looking at trading stables for stables on LeoDEx. Always check the estimate of how much you're getting for your trade before you trade. Right now, I wouldn't even look at LeoDex for a while. Perhaps its the complicated mulitistep process required to trade across chains or the Thorchain fees.

Thorchain : ASGARD

Asgard's Binance smart chain access doesn't even work. That sucks. Of course Asguard doesn't give you access to HBD anyway.

Assuming you have USDT on Binance chain, and you want to take advantage of a year of interest as Hive dollar savings here is the process:

Action	Balance	Gain or Loss
Starting	100 USDT
Deposit to Hive Engine	99.25 SWAP.USDT	-0.75%
Trade for SWAP.HBD	97.56 SWAP.HBD	-1.7%
Withdrawal	96.83 HBD	-0.75%
Transfer to Savings		0%
Interest	116.19 HBD	20%
Withdrawal from Savings	116.19 HBD	0%
Deposit to HE	115.32 SWAP.HBD	-0.75%
Trade for SWAP.USDT	113.41 SWAP.USDT	-1.66%
Withdrawal from Hive Engine	112.56 USDT	-0.75%

The whole process without the interest costs 6.2%. That is if you got into Hive Dollars and immediately withdrew and went through the process of turning it back into USDT you would have 6.2% less than what you put in. However, if you leave the Hive backed dollars in for a whole year, then in a year, three days and hour or two you would have a gain of 12.56% and in USDT. You only need Hive Engine

I think the cost and the long time required to recoer and break even being about four months is enough to keep large amounts of money away from Hive dollars.

@leprechaun 🍀🍀🍀🍀🍀🍀🍀#finance #thorchain #leodex #hive #hiveengine #hive-engine #tether #usdt #HBD