LeoFinance has launched a peg-Hive Backed Dollar (pHBD) on Polygon. Hive users can now instantaneously wrap and unwrap HBD into pHBD on the Polygon network. pHBD is 1:1 backed with HBD on the Hive Blockchain. If you want to know more about the peg mechanism here is detail description on how it works.
The initiative aims to build a pHBD/USDC liquidity pool of $5M. This could spark the beginning of DeFi on Hive blockchain. It’s a simple way to stake, provide liquidity, farm and earn yield on Hive. Kind of what Anchor is doing in the Terra ecosystem.
Hive Backed Dollars (HBD) is an algorithmic stablecoin on the Hive blockchain. It’s a debt instrument backed by hive, the native token of Hive blockchain. At any time, HBD can be redeemed for hive and hive can be converted to HBD on internal market.
With the recently raised HBD fixed Interest rate to 20% savings, anyone can stake HBD on-chain and earn a fixed yield of 20%. LeoFinance wants to use this opportunity to attract stablecoin yield seekers and whales to the Hive ecosystem.
LeoFinance is a social platform where users get paid for creating, upvoting and interacting with content. It's similat to hive.blog portal. LeoFinance also launched on Polygon a DeFi optimizer platform called Polycub where users can swap, enter LP Pool and farm pHBD (Polygon Hive Backed Dollar).
Getting ready for actions, here are some info?
What do you think about pHBD? What impact can it have on Hive?
