What Effects Should Be Expected Of pHBD and xpolycub lending?

I've come to the realization that most hive based projects are independently evolving, while giving that flexibility could be a pain in the ass more often than not, it's also pretty unique thus far observed, considering that the growth and scaling abilities is solely based on community effects, it's amazing when the investors can directly influence the economy of the space, however, there's a said amount of influence a single individual can create which makes it even great right?

With this, we're most definitely able to gauge the measures of a project's sustainability, being partially able to determine its long term fate. Leofinance has been building a lot of late, quite a lot that one would have to backtrack through many articles to realise how there's been massive growth so far. From Leo to Cub to pCub and now, with a lot more bridges like bleo, wleo and pleo, pHBD is soon to be launched. While there has been a lot of conversations on this, considering the current out of the blue increase of HBD savings APR, questions have been asked on the relevance of the upcoming implementation.

Liquidity

HBD as we all know lacks liquidity for many reasons best known to individuals and supported or kicked against through personal perspectives. With pHBD, we're actually looking to have a fat ass liquidity (hopefully). Now, there are many ways to expect this to play out. It's crazy when you look at it, there are a couple possibilities, one is the fact that this will have a great impact on HBD price.

With a possibility of 30% Apr for providing liquidity, in a pure stablecoin pool, we're looking at a mechanism that will greatly support the price. This will create quite the demand for HBD specifically, because to earn that fat ass Apr, it's only normal to expect one has to buy HBD and swap for pHBD at a ratio of 1:1, so we're looking at an increased volume for HBD internal market?

Building the deepest HBD pool is not a bad idea after all!

Arbitrage

Arbitrage trading is quite a huge venture that most people don't pay attention to. It's the safest form of crypto trading out there and has quite the size of traders. A cross-chain stablecoin pool is but a massive opportunity and clearly a tool of attraction.

When you look at the internal market, the tribaldex pool and soon the pHBD pool on polygon, there's quite the triangle for sweet arbitrage. In a way, although arbitrage give individuals an opportunity to earn "free money", It also helps stabilize the prices of assets. Most times oracles are slow to market fluctuations, so arbitrage helps correct it up and that's why it's an important piece of the puzzle!

Xpolycub Lending

Remember when I talked about xpolycub lending in the past and how I'd use the loan taken? Well, with pHBD pool, it's only inevitable that this happens in my case. When you look at polycub structure and how certain things are built out, while APRs can change for many reasons, there's always a set rules followed up. So when you look at how xpolycub is a number go up asset, sucking value from every other pools, you're also looking at how it's ability to access loan to be an "empowerment" to earn double!

Let's say most pools steadily drop in Apr paid, but pHBD keeps a stable Apr, it's only ideal to have more money flowing into Xpolycub to take out loans, why?

^{-pHBD is creating demand for HBD, making the price extra stable with a joint effort of the hbd stabilizer}

^{-with xpolycub, there's a chance to earn both the vault rewards and also qualify for a loan. A loan that can just be reinvested in another pool, preferably pHBD pool for a fat ass APR on a stablecoin.}

As this continues, the protocol is getting more inflow of value, and more of it is hitting the xpolycub vault (which earns from diverse means). This means there'd be a price effect on polycub, because to get xpolycub means you gotta buy pCub.

Added to this, it's quite a bliss when you realise there's less risk of losing your Collateral because the price keeps a steady growth. This also empowers the early investors because they stand a chance of getting more loan amounts when the new investors eventually pump the price.

There's so much happening on hive lately and I figured it's just the best time to pay attention…!