HBD and pHBD continue to perform despite dip

HBD the original algorithmic stable coin developed over 5 years ago continues to operate without issue. Although HBD often trades a little lower than $US1 and at times above this is due to the fact that not many people are aware of the benefits on offer utilising HBD.

Given the collapse of UST it is understandable that many are cautious when investing or purchasing stablecoins especially if the work Algorithmic is included. However Hive has inbuilt features that protect against misuse and runaway death spirals.

Just like UST you can always trade 1HBD for $US1 dollar value of Hive however, there is a catch. The transfer isn't instant it takes three days and is of the average of those three days.

It sounds "unfair" but it is one of many key features implemented in order to secure the peg and prevent death spirals as any transitions require a three day waiting period.

No Staking Required

Unlike UST and many other stablecoin farming mechanisms you don't need to stake HBD all you need to do is put it into your savings account. Withdrawing will have a three day waiting period but this is done for account security.

If you're account is hacked the three day waiting period to withdraw means hackers have to wait that period and it gives you time to act. APR is also currently sitting at 20% but there are also a few more built in features to prevent death spirals.

The interest is paid monthly which means unlike APR you're not getting paid interest on interest it is paid monthly then you need to claim and your new amount after a month gains the additional interest. You also can't just set and forget. You will need to make a transaction within that month to be eligible for that APR i.e. adding some more HBD even 0.001 will trigger the APR and continue it's payout.

All these features add to protecting the chain, making the project sustainable and delivering for everyone.

The trade off? at times the stable coin will be a little less than $US1 but often pegs back but there are arbitrage opportunities for people that won't cause it to depeg.

Leo Finance Drives Sector Development

Most recently Leo finance has developed a pHBD built on the Matic network that is providing access to HBD beyond the Hive ecosystem. each pHBD is backed 1:1 with HBD and users of Cub finance have the added benefit of pairing pHBD and HBD with USDC and earning close to 30% APR.

APR is a safer model compared to APY which is compounding interest that as we have seen has caused significant problems with sustainability and flash crashes.

Both HBD and pHBD have continued to perform throughout Cryptos largest winter and we look forward to seeing continued growth and confidence in the networks development.

Are you using pHBD or HBD? how have you found the stablecoins?

Image sources provided supplemented by canva pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services

Posted Using LeoFinance ^Beta