Hive Backed Dollar (HBD) stands out as an excellent choice for those seeking a stablecoin that isn't linked to traditional fiat currencies, remains free from regulatory controls, can’t be arbitrarily frozen or restricted by authorities  and is useable without needing to go through AML or KYC procedures. Here’s a bit of background and some insights to explain why.

![1000706701.png](https://files.peakd.com/file/peakd-hive/wongi/AJpezfxu4DZbQMECyYGH27UrqYs6T7cH2C1eeDFXchZBPShrVwJMZP2tu1vbXJu.png)


Hive Backed Dollar (HBD) is the native stablecoin of the Hive blockchain, designed to hold a stable value pegged to approximately one US dollar in a decentralized manner. Unlike typical stablecoins backed by fiat reserves, HBD relies on the underlying value of the blockchain itself with a unique on-chain conversion mechanism that allows holders to convert HBD into an equivalent USD value to Hive’s native cryptocurrency (HIVE).  
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**For example, 10 HBD can be exchanged for $10 worth of HIVE, which helps maintain HBD’s peg to dollar.**
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HBD plays an important economic role within the Hive ecosystem, providing a stable medium of exchange and store of value amidst the volatility of other cryptocurrencies. The Hive blockchain operates on Delegated Proof of Stake (DPoS) protocol, enabling fast, fee-less transactions, which benefits HBD holders. 

One of the most interesting features that sets HBD apart from many other stable coins is its ability to earn an APR of 15%  when staked within the Hive ecosystem. This built-in interest bearing functionality is governed by Hive witnesses who vote to set interest rates amongst other things. This makes holding and staking HBD a very attractive proposition for users seeking both price stability and yield, **a combination rare among stablecoins**.



HBD differs from centralized stablecoins like USDT or USDC because it eliminates the reliance on fiat reserves or centralized entities. Instead, HBD is algorithmically managed against the value of HIVE and benefits from decentralized governance.


Within the Hive community, HBD serves multiple purposes: it is used for rewarding content creators, facilitating transactions within the blockchain’s social media and decentralized apps and it can also be stored as a stable asset against the more volatile HIVE token.





![1000706611.jpg](https://files.peakd.com/file/peakd-hive/wongi/23tRvShqkhPobJzR8PJw2Cfkgx616QHMbFV4iVnHcoKBSp9JhG4A8EbBUstqT2uJinxyG.jpg)
<sup>[A screenshot from my Hive wallet]() 
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## How to Earn HBD
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You can earn HBD in a number of ways  within the Hive ecosystems:

* First, through content creations and curations. Users who publish blog posts, snaps or videos can receive upvotes as rewards. A portion of these rewards are paid out as HBD. Also, users who find and upvote good contents also receive a share of the rewards, which can include HBD.

* Interest from holding or saving HBD. If you save your HBD, you earn interest automatically. The process is pretty much automatic: just deposit your HBD into your savings, sit back  and watch your balance grow.

* If you are a business owner or an entrepreneur, you can accept HBD as payment for your goods or services whether physical or digital.

* Another fun way Hive users earn HBD  is through contests, giveaways and community bounties. The Hive community in general  regularly organizes competitions, challenges and giveaways that offer HBD prizes.
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**If you are not a Hive user but want to earn some HBD, here are some simple steps to follow**:
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- Create a Hive account. This process is free on most frontends. Check [this](https://ecency.com/hive/@meno/the-journey-of-a-hivean-account-creation-and-onboarding) post out for a better understanding on account creation. 

- Start posting, interacting and building connections. [Here](https://ecency.com/hive-181335/@ibbtammy/xqoephxu) is an easy guide. 

- Save or stake your HBD for interest.



![1000706636.png](https://files.peakd.com/file/peakd-hive/wongi/AJkLJfFcNLb1eeafQWo6w5HLEhk52rcd8i9nt2TGuqgLaZAsx3HfaHxeRvVtcNp.png)



In summary, Hive Backed Dollar (HBD)  is one of the best bets. It's a fascinating stablecoin in a decentralized blockchain that combines stability, decentralization and interest bearing incentives. It is also fast and fee-less. In addition, HBD’s future looks stable and promising thanks to continued technical improvements, new dApp integrations and a strong community. So what is stopping you from becoming a HBD holder and benefactor?

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<sup>**[Thumbnail](https://www.canva.com/design/DAGuucfXB_c/juxquyDhXpbzm3QEq1Akjg/edit?utm_content=DAGuucfXB_c&utm_campaign=designshare&utm_medium=link2&utm_source=sharebutton) 
[Image 3](https://www.canva.com/design/DAGuucjJzkQ/KCqDam3jFRCSY85OCJejRg/edit?utm_content=DAGuucjJzkQ&utm_campaign=designshare&utm_medium=link2&utm_source=sharebutton)**</sup>

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## LIEBE 🤍