We Need HBD and HIVE Liquidity Pools

The CEX versus DEX argument is getting much bigger. This is taking on even greater meaning with each passing day. As the CEX fall under the control of governments, it is vital that coins and tokens have alternatives.

If we are being honest, people like CZ have way too much power. The centralized exchanges are really no different than bankers. They are just another form of gatekeeping. Instead of having Banks of America or Barclays, we have Coinbase and Binance.

They control the on and off ramp.

While bridging to fiat currency might be difficult, there is no reason for these entities to dominate the crypto-to-crypt transactions. Since we can see more transactions occurring in this manner, the idea of liquidity pools and DEX should be expanding.

In short, this is where the action should be taking place.

Hive At The Mercy Of Two Exchanges

Where can you get HIVE? What about HBD?

For years we heard how it is vital to get HIVE on the exchanges. At present, we basically are looking at Upbit, which is only open to Koreans and Binance. When it comes to HBD, the options are even more limited. We would be remiss if we didn't mention Bittrex yet those wallets are shut down much of the time.

It is also worth noting that CZ appears to be on good terms with Justin Sun. There is obviously no love lost with Sun and Hive.

We also know it is rather common for exchanges to simply go through and axe a bunch of tokens. This makes sense from their business perspective. If there is almost no volume on them, it is more effort to support a coin or token than it is worth. Nevertheless, this does exemplify the power these exchanges hold.

For this reason, the future of Hive-based coins should be in the decentralized finance world. Why even try to fight with the system that we are trying to unseat? The discussion often centers around decentralization. This should include the way the coins are acquired.

What If Binance Dropped HIVE?

Have you considered how things would look if HIVE was suddenly dumped by Binance? That could happen without warning. We could get an announcement that it was being delisted. What would people do?

A major piece of the puzzle when it comes to exchanges, assets, and trades is liquidity. Without that, the appeal of what is being sought diminishes. When there is a premium paid to acquire something due to a lack of liquidity, that can be frustrating. The bid-asked starts to widen, causing people to pay more.

Hive does have a built-in option. the internal exchange. This is one of the more popular ways to swap HIVE-HBD. As we can see, there is a 24 hour volume of over $375,000. This is healthy volume, especially for an internal exchange that only caters to the captive audience.

internalexchange.png

Then we have Cubfinance which has 4 liquidity pools on Binance Smart Chain. It has roughly $400K in liquidity. This is a drop in the bucket when it comes to the world of decentralized finance.

bhbd.png

There is also another couple hundred thousands over on Polycub.

Finally, we can add in Blocktrades which supports both HIVE and HBD. There is some liquidity there too which is added to the pile.

Swapping For Popular Coins

A great deal of focus is upon building infrastructure. For the moment, what we are discussing has to be built out. Leofinance did a good job getting some pools set up. But more are required.

When we look at the major coins, how many can be swapped directly for either HIVE or HBD? Do we see a path to Bitcoin (the wrapped versions)? Ethereum? Litecoin? Tether?

Certainly, having a wrapped version of the Hive coins on Polygon and BSC give us access to different versions of these tokens. However, it is still going through a couple different steps, even if on the back end.

Ease of use is going to be a key factor going forward. The industry is going to have to really make it a lot easier for people to utilize the different applications. One of the advantages that centralized exchanges have is they are fairly logical to use. If one did any trading for stocks or bonds on exchanges, you can use a Binance or Coinbase. The same is true for the internal exchange which is very intuitive.

Once we get into Metamask, Pancakeswap, and contracts, it can get confusing for the average person. Alas, this is the point we are at.

Last week I brought up the idea of the Hive Central Fund. This article laid the foundation for a decentralized system built on top of Hive.

One of the ideas that follows this is to tied an expansive DEX system to it where different coins and tokens are paired with a derivative of HBD. Over time, this would allow for the deepening of these pools tied to this system. As long as we have one lode with deep and accessible coins, then we are insulated from the actions of the major CEX.

This would not only help to feed into Hive's popularity but also would grow along with Hive.

In other words, we simply build the infrastructure ourselves. Through the Hive Central Fund, it would feed back to the holders of Hive Power. We also start to integrate other tokens in there such as synthetic assets. As we can imagine, each layer only adds to the utility of HBD but also pushes value back to the Hive ecosystem.

There are many facets to Hive. We have a lot of directions to focus attention on. This makes the overall results appear slower since progress is incremental in each area. However, when we total it up, over time, there are more areas where things can explode.

While the social media aspect of Hive is vital, we cannot overlook the monetary and financial component. With the industry going how it is, we have to focus upon ensuring that our coins are available to those who want them.

This is going to require a great deal of effort in this area but it will bode well for all of us in the future.

Liquidity pools are a starting point. We also need to have the DEX activity increasing. It is the future in my opinion.


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Bang, I did it again... I just rehived your post!
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I don't know how but I've heard of DEX getting hacked. The one that comes to mind in belemo's account last year. Its a beautiful thing but we have to secure it before bad actors start looking at hive accounts.

Nice post as always.

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We need to see the bHIVE and bHBD pools grow far deeper in liquidity

After the whole debacle with Steem, it became one of my goals for the long-term of LeoVerse/Hive itself to build out a decentralized way to move and utilize HIVE (and more recently HBD).

I'm working as hard as I can to grow these LPs:

  1. bHBD-bHIVE
  2. bHBD-bUSD
  3. bHBD-CUB
  4. bHIVE-CUB

The reasoning behind this particular setup of pairs is arbitrage. The arbitrage it creates generates so much value and that value is just reinvested in deepening the liquidity in each pool + driving up LP Rewards.

This is the mission: grow the depth of these LPs to rival that of CEXes in the long-run.

We can't do it alone. We need the Hive community's help to provide HIVE and HBD liquidity.

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really thankful for these options, well done! Hope liquidity grows, but it's a tough one

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That is true. It is a great goal to want to rival the CEX. We have to get one area with a tremendous amount of liquidity. You are right, arbitrage is very powerful and a great way to deepen the pools.

We will keep driving forward. This is something that stands to benefit the entire ecosystem.

Next up: build out financial platforms with HBD (or the derivative) as the payment token.

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If you look at Mandala, it is basically a clone of Binance. It is too bad we couldn't make our own decentralized version like that. I am not saying Binance is the be all end all, but people are familiar with it, so having the same look and feel might not be horrible.

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Fork a centralize platform onto a decentralized one, that will be awesome. Not sure how possible that is for the non-techy like me.

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I have a feeling it is probably more complicated than it seems. The code is clearly available however Mandala got a hold of it.

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I am not familiar with that one. But then there is a lot of new stuff coming out that I am not following.

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It's basically a clone of Binance without the KYC. I still need a VPN to use it in the US though.

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It is like giving HBD a kind of role in our DEX such as that of USDT, BUSD etc in the centralized EXs.

I like the idea.

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That is my what I am talking to some about. Getting some infrastructure built that ties into other financial assets, yet has HBD (or the derivative) as the main payment mechanism.

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I pray to God that every single Indian, Slavic, Amerimutt and African shill on this board disappears and is replaced with a reblog of one of your based post

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the truth is that this fund must be seen as the beginning of what will surely lead us to obtain profits in the future

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What if we have an app that does the aggregation of all the possible pair pools, like be it from Khal or other people who make pair and wish to add into it, all of this combined in single interface. That would make things lot easier to point to, as of now just khal and guys are coming up with farming and pool but we need more people pushing their DeFi pairs and projects up for farms.

What do you think?

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Without knowing the technical details (I probably wouldnt understand them if I did), it seems to make sense to me. Incorporating as much into an interface as possible, moving a lot of the technical stuff to the backend is a step in the right direction for "ease of use".

This is where we have to keep thinking ideas to make everything more user friendly.

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First of all, I think HIVE and HBD are on too few CEXes out there. I cannot understand how after so many years we couldn't push to have them listed on the biggest exchanges. Once that happened the extension over DEXes comes naturally. We are talking about different marketing initiatives, but first we should have both tokens listed and start from there.

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not sure if anybody actually tried to get them listed. We would need some sort of combined effort

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Hive should be indeed but HBD certainly makes zero sense there.

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A lot of times the exchanges want to be paid.

Bittrex is fairly larges seems to keep shutting the wallets down. Coinbase wants a fortune to be listed there.

Unless in the top 25 or so with huge trading volume, the CEX are able to drive hard terms.

Always worth a try but if not there, we need to focus on Plan B, and quickly.

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I believe the part that CZ can delist hive without any warning but this is business and we all know that cz love money and doing that will be opportunity missed for him. I believe if we support Leo team's ambition on cub finance liquidity for hive will be easy

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CZ isnt alone in that one. Coinbase can dump you in a heartbeat too. They all can. It is their business and they create the ToS.

So if they want to axe a coin, nothing is going to stop that.

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I would definitely vote for something like this if there were a proposal!

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Well there are a lot of parts discussed in the article and many moving pieces so not sure how it all would fit into a proposal.

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Once we get into Metamask, Pancakeswap, and contracts, it can get confusing for the average person. Alas, this is the point we are at.

I remember the first time I wanted to get into the pHBD-USDC liquidity pool, gosh, I was so confused. I am grateful I had good hands help me get into it. But then, for other people, they might be thinking it's confusing too, so we would need to create bridges that could be understood by anyone.

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It is a bit tricky to start. A lot were put off. It was good to see a lot of the lions persevere and get it. Once the basics are understood, it gets easier.

But those were motivated people. The average person is not going to do that.

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What if Binance delist Hive? This is worth pondering for us to consider DEX alternatives. Vital point you raised.
I keep wondering why isn't the likes of Uphold isn't listing Hive, looking at it from another angle now, in as much as it will give Hive exposure on CEXs, the goal for some of us id to have nothing to do with CEXs.

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I dont know what it takes to get on exchanges. There is a process.

Part of the problem not having a centralized company behind the ecosystem.

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Have you considered how things would look if HIVE was suddenly dumped by Binance? That could happen without warning. We could get an announcement that it was being delisted. What would people do?

I'm sure Huobi would thank them for more than doubling their volume.
Also CUB volume would likely increase exponentially.
Hive would probably lose at least 50% value in a flash-crash.

But yeah of course we should be building our own infrastructure.
Everyone takes these shortcuts and then forgets we need to look backwards and patch all the holes we missed. Everyone wants to be on the bleeding edge and no one wants to do the busy work. Classic tech bros.

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Everyone wants to be on the bleeding edge and no one wants to do the busy work. Classic tech bros.

LOL. Yeah. Avoid the tech grumtwork.

Also CUB volume would likely increase exponentially.

I would imagine that people would wake up to the threat and suddenly start filling some of the Hive LPs on Cub and Polycub.

It would be a wake up call.

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Interesting we need some encouragement so we can do more research and invest more friends into hives

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A major piece of the puzzle when it comes to exchanges, assets, and trades is liquidity. Without that, the appeal of what is being sought diminishes. When there is a premium paid to acquire something due to a lack of liquidity, that can be frustrating. The bid-asked starts to widen, causing people to pay more.

Just reading this paragraph reminded me of Ionomy. I believe it was one of the first exchanges to list Hive after the fork from Steem if my memory serves me right.

Right now there is very little volume of Hive and the HBD market is basically dead.

Both tokens are listed on Ionomy.

I used to use Ionomy quite a bit but when Hive got listed on other exchanges, namely Binance, almost all Hive/HBD action dried up.

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Yeah. It is one thing to be listed, another to have liquidity and trading.

There were a number of smaller exchanges that had/have Hive. But without any liquidity, it is almost a waste.

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Totaly agree on this ... there was multiple mentions in building a trustless bridges with multisig accounts, a lot said it is possible amd yet nobody has done it till this day

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There’s certainly no doubt of liquidity coming from derivatives. In the decentralized finance world , it’s quite conspicuous that liquidity pools are a central part of the equation. To possess as much coins or tokens as possible with many pools is the main goal. That being said , investors on Hive want depth to these pools so the liquidity is available when needed.

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Do you think going beyond the upper cap of total debt from 10% to 20% or 30% would not cause any harm. Because HBD is a debt instrument after all and we literally print new HBD to pay the authors. So there must have been a deliberation from the outset to limit it to a max of 10%, but going beyond this limit and making it 20% or 30% should not prove counter-productive. What do you say??

We Need HBD and HIVE Liquidity Pools

We definitely need such a pool, but with better liquidity. If you do not decouple from CEX in the long run, you are always at the mercy of CEX under the guise of liquidity.

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Leofinance team show up great effort in hive and HBD swap, having hive and HBD swap in those pairs brings powerful values to hive blockchain in general.

Good work from Leofinance team 🙏

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The LPs need to grow and we need more alternatives than the CEX but it's tough. I am also wondering if Binance or some of the other chains could even ban tokens on BSC and I don't know if that is even possible.

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