The HBD Opportunity: Building An Ecosystem Around It

There is a lot of attention of late to the stablecoin market. For the moment, the Hive Backed Dollar (HBD) is floating under the radar (like the rest of Hive). This will not be the situation forever. Because of this, it is important that preparations are made for the inevitable time when the regulators come knocking.

Of course, we all know there isn't a door to knock on. Since there is no company or "lab" behind the project, there is nothing that can be done in terms of hauling someone into court. That does not mean actions cannot be taken.

Nevertheless, what we are going to focus upon today is a different approach to stablecoin building. So far, throughout the industry, we saw different projects toss out a token and then look for adoptions. Some like USDC did rather well; others, not so much.

HBD is a tremendous opportunity for Hive. The benefit that it is tied to this ecosystem provides a pathway that most others do not have.

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Hive's Financial Network

One of the keys going forward is for Hive to build out its own financial network. At the moment, DeFi is rather limited. On-chain is relegated to HBD being put into savings along with trading on the internal exchange. Both of these are fine operations for the base layer. However, we are going to need more development with Layer 2.

Naturally, one of the missing components is a robust smart contract system. Without that, it is difficult to get DeFi on the magnitude required. Many projects are having to go to other chains such as BSC or Polygon to alleviate this situation. Hopefully we will see the next year focus upon this problem.

At the moment, we have the SpkNetwork along with DLUX building out a decentralized system for nodes. The goal is to provide communities with the ability to offer immutable data and protect free speech. Here is the key: if the node system prevents the removal of people's opinion, it is then able to handle a financial system that is out of reach of the authorities also.

This is where the concentration should be. With decentralized infrastructure on Layer 2, tied to the decentralized system at Hive's base layer, we have something to work with.

Here is where we could see the buildout of lending, bonding, and synthetic asset platforms. Even mirroring the traditional financial world, we can see the potential for billions of dollars in asset generation.

All of this could be tied to HBD.

HBD As The Default Pair

One of the features of a smart contract system is for communities to create their own token. This is something long discussed, going back to the days of Smart Media Tokens (SMTs). By having this on the second layer, we then have the ability to tokenize communities, turning them into their own economies.

With the proper infrastructure, such as an exchange to handle the swapping of tokens, we see the first major use case for HBD (or a derivative of it). Under this scenario, HBD should be the pair with all the other tokens created. In other words, all transactions pertaining the buying and selling of tokens involved HBD.

We also need to take the same concept to the liquidity pools that are created. When dealing with wrapped versions of the major tokens, they should be paired with HBD (wrapped). Again, this is the default standard on infrastructure that the Hive community builds out, i.e. funded through the DHF.

This really starts to get interesting when we get into synthetic assets. Here again, the value of decentralized infrastructure is vital. Once that is in place, we can start the process of delving into areas that create derivatives for the benefit of Hive. This is part of the idea of "building JP Morgan on Hive".

As these markets grow, guess what is required to transact? If you guessed HBD, give yourself a gold star.

Now picture all of this incorporating time locked vaults, bonds similar to Treasuries that can be traded on a DEX, and lending platforms where Hive-based assets can be used as collateral for loans.

On a side note, annuities are very popular, and powerful, products. The risk associated with this is the company that issues it. As long as it remains in business, all is good. However, as we saw with Bear Stearns and Lehman, long time financial institutions can go under.

Here is where building out an "annuity pool" without the counterparty risk could be a hit. Perhaps this is partially funded through some of the transaction fees from these other platforms.

Of course, all payments made would be in HBD.

Utility and Resiliency

The key here is to provide both utility to HBD along with resiliency.

It is important to mention that we did not even embark upon the idea of commerce tied to HBD. That will come. Cryptocurrency seems to attract people focusing upon the financial aspect of things. Since that is the case, might as well cater to it.

Another vital component to this discussion is the volume of activity. When comparing finance to commerce, we can see how the former dwarfs the latter. Each day, markets do trillions of dollars in volume.

If HBD can carve out a sliver of that, we could really have a foundation for a very powerful stablecoin.

All this is designed to leverage the growth of Hive. As more people engage with the social media aspect of things, we can see how DeFi is going to play an important role. This is something that is an advantage when compared to many other ecosystems. Hive has a feeder system, both in terms of network effect and financial resources, that can be utilized to provide value to HBD.

Naturally, all of this ultimately feeds back onto HIVE, since that is the coin that truly reflects the activity that is occurring.

Complex systems have many layers to them. Hive is shaping up that way. This process can be assisted by focusing upon what the ecosystem needs and tying it back to the main coins. This is an idea that CZ is already adopting for Binance with his latest move to drop other stablecoins. BUSD is going to be the stablecoin that all use on that platform.

Hive can follow a similar concept. We are the one's responsible for generating value tied to this coin.


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36 comments
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For me, HBD means sure money regardless of market volatility. Earning it from content creation and DCA investment, I put it into the Savings and wait to get my return month after month while building a big stack for the future. Having this stable revenue allows me to even start a project or something alike using these funds. Stablecoins such as HBD are a must-be in any crypto ecosystem.

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The savings is a safe move in my view. It is on the base layer which removes the counter party risk. However, this is only a step in the process. We need to add more layers to it.

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pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 124 of my contest just started...you can now check the winners of the previous week!
!PIZZA
8

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My only concern is liquidity in this matter. If we get a flood of people like we did from Splinterlands, it could be unpredictable... Maybe I'm worrying too much. But I'm still looking forward to this moment.

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Liquidity is an issue now since there is little to no incentive to create more HBD. If we had a use case as described here, we would see a different situation where people would have to buy $HIVE and convert it to HBD.

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If HBD can carve out a sliver of that, we could really have a foundation for a very powerful stablecoin.

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Wow. It was recently I realized that that hive wasn’t as robust as Eth and other smart contract platforms. Non the less I believe in hive. What distinguishes HBD from other stable coins is it’s limit. Meaning that the printing of HBD is limited in the internal market reducing attacks. If it was to be exposed as other stable coins, then we would be much susceptible to regulations

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Yes Hive is without a robust smart contract platform. A few are working on it, we will see what comes out over the next year. To me, that is one of the vital areas that requires attention.

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very interesting perspective, this will help put a lot of HBD out and into work. Our internal market needs a full overhaul,

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Well the internal market wont really be affected too much. Much of the activity, as laid out here, would happen on layer 2 so it would be there that the exchanges/liquidity pools would have to be robust.

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I believe HBD has evolved a lot since its creation. It only gets more and more attractive and I find myself adding more and more to savings because it's such a great low risk/high return move.

What do you think is missing for HBD to be listed on a major exchange such as Binance?

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It certainly has evolved, at least in terms of price stability. There is still little use case for it.

As for adding to exchanges, it is likely going to run into regulations, especially out of the US. They are after stablecoins.

That is why it is vital to get liquidity pools and other DEX options going.

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I so much believe in the unknown future of hbd, hive is building and what makes it powerful is taking major step one after the other. Hbd is going to be a big thing in the nearest future

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We will see how it evolves. If there is some infrastructure built that ties into it, then yes the potential is enormous.

However, we need to get that in place first.

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While it is still fairly early days, HBD is proving itself the only truely robust and stable algorithmic stable coin.

That is because it has the entire Hive ecosystem supporting it with a diverse range of uses, some focussed outside crypto (eg Splinterlands and @podping).

Algorithmic stablecoins which are supported by a blockchain and token that have no real purpose other than supporting the stablecoin are vulnerable to attack and will fail sooner or later.

Dollar backed stablecoins are inherently centralised and will be taken down or controlled by governments.

So HBD occupies a unique position.

We should definitely leverage that position more, but it can only grow with the Hive ecosystem itself. The Hive ecosystem is the foundation.

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All points I agree with. There is a lot of truth to the fact that $HIVE has utility, hence the backing agent has inherent value.

There is not a lot of other stablescoins you can say that about.

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These possibilities you mentioned in this article gives an idea of what DeFi encompasses, it is broad and can be modeled to exist in various ways.
Hive's complexity makes it a unique blockchain to build layers upon layers and that is where it gets stronger and stronger.
How do you stop something with countless layers spreading out consistently?

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How do you stop something with countless layers spreading out consistently?

Why would you want to?

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The big brothers always wanting to have things within their control might develop ideas as we grow and expand on Hive. I do believe the longer Hive exist and keeps building layers upon layers the more resistant to malicious attack it becomes.

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With #HBD and #Hive we have the future assured, there are only small details left to develop and ready we will be at the forefront of the Cryptographic market.

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This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

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LET US SPEAK SPIN OF HBD SUPERSEDING EVERYTHING SUCCESSFUL IN THE WORLD

[insert image of taskmaster$44.50]

BUT WITH OUR LOW LIQUIDITY
SUCH TALK IS JUST STUPIDITY

ps: LOW RC so my meme is a work in progress. Hey this is Hive ... everything is BLUIDIGN true.

AKA:
bugging out like Speak.tv
hiding out like HF26
and Threading off (shooting pBLANKS) in the closet like c[L]ub Leo.

Ain't that a funny tale,
A once PROUD LEO PRIDE that openly laughed at HIVE Tokens (back in the honeymoon period), is now using them to keep itself alive against POLAR BEARS.

crypto sure is fun.
words (ideas) do start things...

but here's R E A L ! T Y :
it is up to THE HUMANS
and their CONSTANT ABILITIES
that make ACTUAL TECH FOR HUMANITY.

That's not been proven on HIVE.

Forking off into greener pastures for the 'hive-israelites' ( "protection of community" ) was one thing,

Building a system that has strong pull in the virtual web-realm and high relevance in the material world is another thing entirely.

and THAT.

IS THE only way to claim
true WEB THREE sup-E-rio-rit-YE .

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HBD is another wonder of HIVE blockhain. I wish we could recieve it from curation rewards as well.

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Under this scenario, HBD should be the pair with all the other tokens created. In other words, all transactions pertaining the buying and selling of tokens involved HBD.

I absolutely love this idea. From what I've seen that's the direction SPK guys have taken. Their tokens are paired with both HIVE and HBD on their internal market. That goes for LARYNX, SPK, and the Ragnarok airdropped tokens.

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I think it can work but I don't really think HBD will really take off until we see far more use cases for it. However, I like the idea of a stable coin on the chain that people can convert their Hive into.

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Hbd has been testified as a stablecoin and the good solid state says it all - how trusted and a handy token it can be on behalf of hive. But,Hive can have much more progress if certain things can be regulated and decentralization has the turnbuckles for shoving if too much power is misused and manipulated.

Hive has created much greater infrastructure that has gained strength and I think if people can put trust on the system, then more growth will be feasible and I am looking forward to see a brighter day ahead.

Good luck!

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We are the one's responsible for generating value tied to this coin. - where is the lie in this ? I actually see none. A major issue impeding the ground breaking success of the Hbd is liquidity. At the long run after all the back and forths the cards still falls on our table . Building multiple ecosystems around Hive is such an ample idea that will really do a lot of good .

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I know this is not a decentralized one, but two monts ago I've launched my own HBD based startup, it permits Cuban Hivers to exchange their $HBD $HIVE to the local money according to the free market rates. Also, yesterday I've launched the first HBD-HIVE based drop-shipping store.

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It's amazing how HBD has become vital I'm the Hive economics and is setting a pace in the stablecoin world. HBD won't be ignored forever. We hope that more utility unveil on layer 2 as you predict.

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The liquidity problems will get solved thanks to @leofinance over time. We can support for more proposals like this one from @ecoinstant (it's already funded but ranked below HBD Stabilizer. Having more CUB Outposts on few more blockchains and DAGs will also be a significant help IMHO.
!PIZZA

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