In the last few days, I have been moving some of my Hive reserves from exchanges and also my HBD from wallets to exchanges for conversion. During this movement, I identified that there are literally no options to take HBD directly outside. There are no exchanges that support HBD without a KYC if I'm not wrong. I had to convert it to Hive and then take it to exchange to convert it to the desired coin.
My intention was to convert HBD to BUSD and move it to my BSC wallet. In order to do that, there is no straightforward facility to convert from HBD to BUSD directly. I think for someone who would like to work on a project that would be of great use, this will be the best solution. We currently have some workarounds but they are very costly at the moment HBD is also not very stable and most of the time it is below 1$. There is no big need for converting HBD to SWAP.HBD directly and use it on Hive Engine. So people don't consider that as an option either.
We all know the potential of HBD as it is currently providing 20% APR to the investors keeping it in savings. But if people would like to directly buy or SWAP HBD with other stablecoins, we currently don't have the facility. It is either costly or a big process right now. This makes other non-Hive folks not understand this ecosystem and are unable to make use of the 20% APR. Some people might say that they can convert it to Hive and then to HBD using the internal market. The problem with the internal market is the liquidity. People cannot complete conversion without losing some value of their funds.
Before we dream of the instant 3rd party swapping facility to other stablecoins via other networks, I believe it is highly essential to have more and more exchange listings for HBD. This way people can at least take the funds directly to an exchange and convert HBD to their desired cryptocurrency. Exchanges may not support HBD to BUSD as it will not be very useful for trade but there would definitely be users who would be willing to convert from one stable coin to another. I'm sure people find BUSD to USDT as a useful feature on exchanges and they prefer keeping it as BUSD on BSC because the transaction fees are a little better here.
Escrow services can be introduced on Hive by developers to facilitate these transfers. Currently, people are losing a lot of money during this conversation and if the services are active and if they can do swaps for a minimum fee, it would be better than trying to do multiple conversions. I don't have enough time with me to work on something like this. But I'm sure there can be developers who can pick it up and come up with a facility. These can also be made decentralized solutions with the help of multi-signature feature we have on the chain. This way in the future, this can also be an additional service hosted by the node operators and get rewarded too.
If you like what I'm doing on Hive, you can vote me as a witness with the links below.
Hive Witness
@kanibotHive Engine Witness
