### A big Splash in Hive ccosystem

Recently there is a big splash in Hive ecosystem. Witnesses increased HBD's interest rate from 12% to 20%. This is the best move they ever made. Their purpose is to bring more investors into the Hive ecosystem. But the benefit comes with a risk. 

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>What will you do if you found out that interest rate?

I believe that you will put your HBD into savings. A lot of people will do the same thing and this is where the problem is lying. If all  people put their HBD into savings there will be no liquidity for HBD. 

>Why is liquidity too important?

***Liquidity refers to how easily you will be able to sell an asset at a widely recognized fair price on the open market.***

Take an example, Dollar and Gold has very high liquidity. You can convert them to anything you want. That is why people keep Dollar and Gold. Even government keep Dollar and Gold in their treasury as a reverse. If a coin has no liquidity how can they attract more investors to come into their ecosystem. Khal has very keen sense. He found out this problem immediately. So he created [phbd:usdc] liquidity pool.

>What are liquidity pools?

If you want to buy some cryptocurrencies, 
* Create an account on an exchange (some exchanges need kyc)
* Deposit Fiat or cryptocurrencies into you exchange wallet.
* Fill an order that already placed (Or)
* Create your own order and wait until order is filled. 
* Withdraw your cryptocurrencies to your wallet

And one more problem persists in exchanges. If you place a sell order at 400$ then price goes up and it spiked to 600$. Then you lose 200$. If you do not place an order you will get 200$ more. In cryptocurrencies the price changes are very frequent. So placing an order is not beneficial to the crypto holders. So they do not place an order then liquidity is more scarce. This makes the price of cryptocurrencies to become high. 

Liquidity pools are solution to solve the liquidity problems. By putting your coins in the liquidity pool you will get percentage of the traded value as a fees. If you add more tokens you will get more in return. It is based on the price of the current exchanges and also it prevents users from withdrawing only one side of the tokens. If you want to swap more tokens you will need to give more fees. This is the reason why size of the liquidity pool should be very big. 

Khal also noticed this problem so he want to make the size of [pHBD:USDC] pool to 5 millions. I think he will need more but this is only the beginning. Currently its size is at 232K and it reaches in less than 24 hrs. It will not take too long to fill the pool. 

The most beautiful thing is you do not even need to create an account. You can directly connect you account to a website and swap immediately. You can keep your anonymity. 

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>Why [pHBD:USDC] pool is very important for Hive ecosystem?

Hive ecosystem has 3 advantages:

1. has 20% APY for HBD
2. HBD is a stable coin.
3. 3.5 days withdraw time to get your money back. 

If you can add very easy wat to in and out of the system. A lots of Defi Whales will interest to join. 

What we need is just Liquidity. We are one step away from the point to bring more Defi Whales into Hive ecosystem. So my friends please come and stake your coins into [pHBD:USDC] pool.

It is important to bring more people into Hive ecosystem but should I abandon my passive income by putting my HBD into savings. This is the question you want me to answer. No worry about this my friends. [pHBD:USCD] pool is currently giving 58% APR and 78% APY. This is too huge. This is very high compared to 20% APY of HBD. 

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You can wrap HBD into pHBD. I believe his is the information you want to know. 

* [How to wrap pHBD to HBD](https://leofinance.io/@khaleelkazi/how-to-wrap-hbd-to-phbd) by @khaleelkazi
* [How to add pHBD into polycub liquidity pool](https://leofinance.io/@ph1102/how-to-add-hbd-to-the-polycub-liquidity-pool-short-tutorial-with-images) by @ph1102

I believe pHBD can bring more Defi Whales especially from Polygon to Hive ecosystem. We haee everything we need to get attention of this whales. I hope you also believe too and make a move quickly. 

@mango-juice, @xabi and b0s.

Thanks for reading my post. 

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