Stable Coins on Hive blockchain and the Beautiful Future

in LeoFinance3 years ago (edited)

Over the years as a content creator on Hive, nothing is as awful as earning a $10 reward on your post only for it to pay out as $2 not because you were dis-incentivized but because there was a major fluctuation ion the crypto market. The effects of such awful experiences have been greatly reduced since out Hive Backed Dollar (HBD) was pegged to $1. Besides, we can tell as many other advantages that that singular change has done to the hive economy,. Indeed, the confidence of an investor has been further strengthened at least with HBD, the value on an investment on Hive can be maintained.

@taskmaster4450 has made several analysis on HBD, its stability, possible usecases, and the future in the market of other stablecoins. This post, this post and this post are some of the many insights that can be meaningful in stablecoin discuss on the Hive blockchain.

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source - Edited

According to Nextadvisor, a stablecoin is a cryptocurrency that relies on a more stable asset as a basis for its value. Stablecoins attempt to peg their market value to some external reference, maybe pegged to a currency like the U.S. dollar or to a commodity's price such as gold. Moreover, stablecoins are to provide stability of price as people are transacting across coins or between fiat and digital currencies.

In a bid to show how cryptocurrencies can be utilized as other regular (fiat) currencies for everyday financial transaction, Stablecoins are created to be essentially less volatile. This stability is obtained via collateralization or through algorithmic mechanisms of buying/selling the reference assets.

Stablecoins have gained traction as they attempt to offer the best of both worlds—the instant processing and security or privacy of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies. Source

The popular stablecoins are linked to a fiat currency, such as the U.S. dollar. These are known as Fiat-Collateralized Stablecoins. They can also have value linked to precious metals or other cryptocurrencies. Thus, we have Crypto-Collateralized Stablecoins and Non-Collateralized (Algorithmic) Stablecoins. Crypto-collateralized stablecoins are backed by other cryptocurrencies. On the other hand, non-collateralized stablecoins don't use any reserve but include a working mechanism, like that of a central bank, to retain a stable price. For instance, the dollar-pegged basecoin uses a consensus mechanism to increase or decrease the supply of tokens on a need basis. Source

How Do You Use Stablecoins?

Basically, stablecoins serve as a means base of exchange of other assets. They form a bridge between volatile cryptocurrencies and stable real-world assets, like fiat. In some blockchains, stablecoins are staked, others are held in liquid form and maybe saved as applicable n the Hive blockchain. Looking deeper into Hive, there are some emerging stablecoins that could yield hugely beyond staking to curation and investment returns.

Stablecoins on Hive

In this post, I'll share thoughts on Three (3) stablecoins on Hive blockchain and how they hope as well as their prospects.

1. Hive Dollar

Every hiver would have known about Hive dollar as all posts rewards are seen by default as HBD and 50% pay out as HBD (in default).

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Hive-backed dollars (HBD) are a unique type of trustless stablecoin that is backed by the underlying value of the Hive blockchain itself and pegged to the USD. This backing takes the form of an onchain conversion operation that lets HBD be converted to an equivalent USD value of Hive itself. For example, 10 HBD can be converted into $10 USD worth of HIVE. This HBD to HIVE conversion mechanism has effectively pegged the value of 1 HBD at or over the value of $1 USD. HBD stored in a Hive savings account earns a variable interest rate (current interest rate set based on the median vote of block producers) source

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Hive Dollar also exist on hive-engine as SWAP.HIVE pegged to the value of HBD in the main chain. Moreover, Hive Dollar and is paired with a number of other tokens in the dieselpools, which makes such pools very strong with long term value.

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Hive dollar is one of Hive's most powerful asset as it has stayed strong over the last year around the $1 value and well averaged at $0.98. This is an indication of a powerful future for HBD that could turn out one of the most powerful stablecoins when combined with the uniqueness of the Hive infrastructure.

2. CTPSB

The CTPSB token is a hive-engine token created by @Achim03, @Jongolson and co., of the @Clicktrackprofit community to serve as a backed token for the @ctpsb accoun. Every investor owns a part of the Hive Power of this account and your investment is used to power up the account.

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Description
The hive account @ctpsb is a tokenized asset. By holding the CTPSB token, you are part owner of the underlying account and the Hive Power on this account. The token has a value: Number of Hive Power on the @ctpsb account divided by the number of tokens in circulation.

PropertyDetails
Token NameCTP Swarm Booster
Circulating supply10123.253846
Total supply11410.016
Max supply1000000.0000
Precision6
Issuer@ctpsb
Websitehttps://www.ref-hunters.ch/ctpsb/index.php
StakingNo
DelegationNo

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The CTPSB token is one of those dividend paying tokens that has maintained a strong market value from its creation and is always growing thereby serving a HODLing reward. We could call it a Crypto-Collateralized Stablecoin.

3. CENT

CENT is one awesome but non-regular hive-engine token. I call it a stable hive-engine coin since it seeks to maintain a minimum of $0.01 price. It achieves this by an adjustable token supply in the prize pool to offset depreciation/valuation. At the same time, the liquidity ratio and trading volume is increased as much as possible. We can call it a non-Collateralized (Algorithmic) Stablecoins

CENT Token is a token that aims to reach a price value of $0.01. Cent Token's price is different from stable cryptocurrencies. The token has a volatile price trend around the target price. It aims to provide ease of transaction to its users by offering high liquidity and high volume. https://peakd.com/cent/@anadolu/cent

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PropertyDetails
Token NameCENT Token
Circulating supply1454201.13524689
Total supply11004406.56909858
Max supply1000000000000.00000000
Precision8
Issuer@anadolu
Websitehttps://www.centblog.org/
StakingYes
Unstaking Cooldown28 days in 4 transction(s)
DelegationYes
Undelegating Cooldown7 days

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With CENT token on hive-engine, a long term stable curation profit can be obtained. This is an amazing creation and CENT could become a token of attraction in the near future that could even force its price to even a 100 Cents.

The Future of Stablecoins

From every indication, stablecoin is one of the greatest development in the cryptocurrency space. There is a great anticipation for more regulations of stablecoins as corporate economies try to adopt cryptocurrency. It's time that crypto project developers look at ways to improve the yield that come with investing in stablecoins as we have a proposition for HBD in Hive Bond.

Join Hive Here and start a new work!

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What is Hive?

Hive is an innovative and forward-looking decentralized blockchain and ecosystem, designed to scale with widespread adoption of the currency and platforms in mind. By combining the lightning-fast processing times and fee-less transactions, Hive is positioned to become one of the leading Web3 blockchains used by people around the world. source

What is Hive-Engine?

Hive-Engine is a smart contract platform on top of the Hive blockchain. It allows communities and businesses to build their own tokens, which are then built on top of the technology provided by Hive. This is the ultimate layer 2 solution. The token created on Hive-Engine is then immediately tradable with Hive on their exchange.

About me...

I am a called teacher, a serial entrepreneur and a Graduate of Agricultural Engineering. Nigeria is my root and a place full of opportunities. I dropped out of a Master's Degree program due to funds, yet I do not regret growing the courage to start my business from the scratch. Today, I've built layers of Businesses on the Hive blockchain in terms of Curation and it's a sustainable passive way of earning crypto while learning.

I am your favourite Hive Tribes Promoter and Curapreneur!
I am @Uyobong.
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Great post, stablecoins are great to reduce the fear of your investments turning into dust

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Indeed, and when it pays huge yields, then we can see how far crypto has gone ahead of Fiat.

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If we can get the Hive Savings Bond coded, it will really be a big step forward. That will really help to push Hive into the fixed income market even further.

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Thanks for covering CENT.

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Thanks for presenting the CTPSB token in this post.

We could call it a Crypto-Collateralized Stablecoin.

It's true in the respect that CTPSB is pegged to Hive. It takes all the earnings of the account and reinvests them into the token, this way the value of the token measured in hive can only grow.

Good day boss i have a question not relating too your post, do you know if there is an auto marker bot on hive-engine for creating multiple order like of binance or bishares

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I think that's possible on https://dswap.trade/faq

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thanks boss checked it out, but its quit expensive, will save up for it to test it out

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I used to think that having a "stable" coin in my portfolio will protect me from losing money. It turned out to be the exact opposite. While stable coins have their place in the crypto market, in the long term holding on to your favourite crypto projects/tokens yields more gains.

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