Liquidity has and continues to be a major issue in the crypto markets since the big crashes of Luna days. DeFi platforms shrank, liquidity on exchanges is being pulled because of SEC regulations and attacks and overall we are starting to see a shift were people are looking at places to store and earn on their funds. I believe #DeFi will be that platform once again and replace exchanges as long as the major security flaws can be worked out and mitigated.
*Quick Note all payout funds from this post will be invested into CUB pools for BHIVE-CUB and BHUBD-CUB farming pools on CubDefi
With liquidity being a major issue in all of crypto and in particular hive suffers from it greatly CubDefi and PolyCub are offering up solutions to this. They currently offer great APR rates but liquidity levels still remain low.
The main pools that I'll be filling myself are
BHBD-CUB
BHIVE-CUB
These two pools alone offer up a great connection with the Binance smart chain world and hive. This provides massive liquidity as a entry point and yes a exit point for hive. This is also the case for Polycub which is on the Polygon (MATIC) network which is one of the most powerful layer 2 tokens of Ethereum where some big headlines and funds will be generated and geared towards over the next few months with Ethereum moving to proof of stake.
The steps for converting Hive and HBD into binance smart chain versions called bHIVE and bHBD is rather easy and only takes a few steps.
Go to https://wleo.io/ and click on what one you want to convert for example if you want to convert Hive click on bHIVE
From here type in the binance smart chain wallet address (Most likely the one you are using for CubDefi and the amount of hive you want to convert. Click on transfer
Approve the contracts after reviewing them for hive and also binance. Give it a few minutes and you bHive will show up in your Binance Smart chain wallet.
Now you can apply this bhive to the cub farm and start earning (at the moment 48% APR which is huge compared to the staking and curation rewards that earns roughly 8%-11% on your hive.
With the way the world operates in banking and financial terms liquidity is a key factor to progress, expansion and the health of the economy. Too little and you start seeing less loans, less investing and so forth. It starts to restrict the economy and this is much the same thing for the crypto world.
This low liquidity also opens up high volatility because now a smaller amount of funds has a more drastic effect on the upward or downward trend of that token. A larger pool / market cap allows for more funds to be needed to make huge impacts.
I firmly believe that Hive and LEO will be one of the if not the single best web3 option. However a lot of work from the community needs to come into play now more than ever. Not in terms of marketing as I believe a quality product will market itself through it's community for the most part but instead in terms of liquidity, development and progress. These are the areas Hive needs to strive for but very often lacks in. In my opinion that DOA money should be used to build hive applications on top of hive to provide more use cases. A high quality NFT marketplace for games, art and whatever else is on hive. Liquidity pools (which I have to say beeswap, CubDefi and PolyCub are leading the charge there and is why I support them so much) and just general application usage. A few new games I know of will be releasing this year on hive which pack some potential but I want to see more. Hive should be inviting to development and perhaps we will see some doors open up here with the next hard fork. For now LEOFinance and the community there are building and innovating and that's HUGE for the entire ecosystem.
