Why pHIVE Is Monumental For Hive
Why pHIVE Is Monumental For Hive
Hive has been around for a while and many honestly treat it like their piggy bank. I see constantly people get high payout rewards on some rather lackluster posts and what we see is a constant power down and selling of the asset. This is what happens with the whales here on Hive. But finally there are some APRs that will start to swing those tides and also allow more projects and funds to flow in (and yes out) of Hive like never before.
pHIVE is the wrapped version of the Hive token on the Polygon(MATIC) blockchain and allows it to be connected into a DeFi platform on the Polygon network called PolyCUB we recently just a few weeks ago saw the introduction of the decentralized stablecoin pHBD which has performed well. While not the greatest stablecoin yet that's for sure as we recently saw a price swing down to $0.94 the other day and as of looking at it now $0.97 means there is still room for risk when adding it against other stable coins. Once it holds the $0.99- $1.01 range I'll start considering it a real stable coin ;)
pHIVE was next on the list to be added into PolyCub and with it comes finally a bridge or a way to do two powerful things.
The first is HIVE can now be used in a decentralized finance system. However it is restricted for the moment to Polygon(Matic) network which isn't the biggest DeFi platform. But we should see it added soon I expect to CUB which is Binance and connects into a much larger TVL which we could see a lot more price action on there once that happens.
These on and off ramps of course open HIVE and HBD up for price swings. These cryptos when you look at their market caps compared to others is very small and thus susceptible to price swings from whales.
What we are seeing however is there is a great demand for these types of systems and the LEOFinance team has set themselves up well with being the front runners of this and collecting small fees that fuel these platforms.
Next up will be the introduction of other hive tokens into Polycub and I expect CUB shortly after. One of the first will be Splinterlands SPS governance token which is a great addition as SPS and Splinterlands in general provides huge amounts of transactions taking place. In fact on Pancake swap it often pushes over $300,000 daily in volume! Even if PolyCub picked up 10% of that (but really the bigger offset would be CUBDEFI as it's also on the same blockchain of pancakeswap) that would be $30,000 a day in transaction value which would include wrapping and unwrapping fees to fuel the native token.
From there we could very well see expanses into other Hive tokens into the mix. However many of these other community based tokens have a very low demand and low volume the next on the list we see is LEO which is already part of the mix and DEC, STARBITS and outside of that it's extremely low volumes on Hive. It does beg the question if adding it into PolyCub however might spark some interest in the project. I know for myself whenever I see a new token added on Pancake swap I end up checking out the project and seeing what it's all about if I want to throw some cake into the pool or not.
Even though this now opens hive and Layer2 tokens to more liquidity we should start to see a increased interest in projects from outside of the limited reaches of Hive. That in itself will drive prices down at first I feel for all tokens involved as it's been such as project to liquid out these hive tokens and hive in general to anything else. That's looking short term, in the long term I see it being a bull for the Hive ecosystem as new projects launch of hive it now gives them the capabilities of more easily raising capital from other blockchains into Hive.
What layer 2 token of Hive would you like see added into PolyCub and CUB Defi platforms?
Posted Using LeoFinance Beta