So it’s a tell a friend to tell a friend about pHBD season right now. This just feels like a **“all hands on deck”** kind of situation. Hmm... everyone is talking about our dear  HBD and I am so glad that we are paying attention to HBD. Hive is a platform that tries not to keep any of its utility left behind. 


![E0DC85D9-2454-4753-8917-ADD4DCDC05E3.png](https://images.hive.blog/DQmSM22YAMYwSwCPkgC6JGywuMeLspmyZjxkiY1yqPtytPf/E0DC85D9-2454-4753-8917-ADD4DCDC05E3.png)

About a week ago, the idea of having HBD savings APR at 20% was introduced and it became a reality, this was done to attract investors into Hive. Sure, if I was a whale who don’t mind throwing in a couple million bucks into some decentralized platform and earn 20% APR without doing anything, why not? But the disadvantage is, when I want to buy these millions worth of HBD where is it going to come from? No supply, but there is demand, it’s like asking for water but can’t buy water and people don’t want to sell their water(HBD) because they know it’s value and they are earning 20% APR for holding. 

![B4D97F73-880F-43C6-B7A1-64C5966D2F2F.jpeg](https://images.hive.blog/DQmX98PmwzS3tGbmr2xdygkUxWAxbZnQMK3xtfyfQvnXfnz/B4D97F73-880F-43C6-B7A1-64C5966D2F2F.jpeg)

I don’t know how right I might be but I thought creating a post and earning author reward in HBD help add liquidity(supply) to the quantity or supply of HBD. I read somewhere that the supply of HBD was designed not to exceed 10% of Hive’s supply value. Hmm... how true is that? We learn everyday from this blockchain. The current market value of Hive is $373,500,792. 10% of that amount is $37,350,079.2. Lots of people can afford that, whales can have more of that, whales can decide to invest that but unfortunately the current supply of HBD we have is $24,355,786. 


![FF0B6FB5-8A0F-4B11-8308-58EBC8741C06.jpeg](https://images.hive.blog/DQme2oRRu3G9yphEmrdSxbbm5HwW1yMZhQxH4qNi4xKFcV9/FF0B6FB5-8A0F-4B11-8308-58EBC8741C06.jpeg)


A whale that wants to invest $37 Million obviously can’t do that. Well the whale can decide to make an announcement and tell everyone on Hive’s to kindly sell all their HBD to him/her so they can save it and earn the 20% APR alone. But c’mon, who has that time and patience? The whale can also decide to use the HBD conversion method to buy up Hive and convert Hive to HBD, but this means that they will have to wait for 3.5 days to achieve that. 

And the way I think that rate works, $37 Million worth of Hive will be removed from the blockchain and converted to HBD. Will that reduce the supply of Hive we have? Well I don’t know. But if 1 Hive is worth $1 does that mean that the blockchain will automatically remove 37 Million Hives from the supply and convert it to $37 Million HBD. This is something that bothers me and has me over think about this liquidity issue. But don’t forget that this process takes 3 days to happen and this means that this investor will have to wait. 


But rumor also have it that locking your HBD up in savings creates opportunity for the blockchain to print more HBD. So if this whale decides to buy up all the HBDs, get 20% APR and decides not to sell it, what happens to us that need HBD too because we also need to earn that 20% APR? What if the value of Hive skyrockets to about $10 and the market cap of Hive becomes $3.9 Billion. This way more people get more author rewards in HBD created by the blockchain because curators Hive power has more value to create more HBD. 



Forinstance if 1 Million Hive power used to give $25 author rewards in HBD and suddenly the price of Hive 10X this means that the new value will be giving $250 author reward. That’s $250 HBD added to the HBD supply or rather liquidity. Remember that the supply and value of HBD is dependent on the price and progress of Hive. It’s literally called Hive Backed Dollar. This way the whale can easily buy more HBD because  it will cost them less Hive to get more HBD because the value of Hive is higher now using the Hive to HBD conversion feature. If 1 Hive used to give 1 HBD, one 1 Hive will be giving 10 HBD now. 


But how does this value of Hive skyrockets or increase if we don’t have people who are willing to buy and demand for Hive so we can have a good price of Hive. People drive demand, demand drives value. On Hive we need those people to drive the demand so it can drive the price up. Aside driving the price up, Hive is great, it’s a great blockchain with great utilities. It’s a hidden gem that the world needs to know and discover. What other ways to entice them to check Hive out but to use the HBD savings APR % to attract them. So this means that they will need liquidity. 


 While this is really hard, let’s be much more realistic, the Leofinance team has decided to set a $5 Million liquidity goal for HBD(pHBD) in the form of pairing it with pHBD-USDC. This way it will entice and attract more whales into the Hive ecosystem. By easily gaining access to buying a lot HBD through pHBD from polycub. 

You get my point right now? So to provide liquidity for large acquisition of HBD by the whales, the Leofinance team bridged the HBD to pHBD and decided to incentivize us with over 50% APR when we provide liquidity in the liquidity pair of pHBD-USDC. That’s quite high, if I am mistaking, that’s the highest APR you can find if a stable coin liquidity pool pair. 

All you have to do is wrap your HBD on the polygon blockchain to have pHBD to stake on pHBD-USDC to provide liquidity. 


Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/hive-167922/@readthisplease/i-wrote-this-so-you-understand-why-we-need-your-hbd-in-phbd-usdc-on-polycub)