RE: How Crypto Loans Could Improve The HIVE ecosystem
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Very great point. If hive could adopt this, I think we wouldn't be so scared of the value of hive dropping after this bullish season is over. I really don't think it's a bad idea but it will require mass adoption.
I have a question; what would be the collateral since the crypto world does not use KYC and what kind of people will be able to get a loan from this service?
In all, this is a very nice idea... still a jessey
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Why would it need mass adoption? It would be peer to peer so lenders and borrowers would meet in the middle and the market will decide it’s rates. If you want an example check out HODLHODL
It’s not a complete solution for everyone only those who feel their crypto position is worth more to them than selling abs having to get back to it from scratch
People will still sell, but those who know whay they are doing could profit from a product like this
So your collateral in this example would be your HIVE and you’ll have to find a lender let’s say me willing to give you HBD at either 50%, 33% or 25% loan to value ratio
So you give me $500 of hive
At 50% you ger 250 HBD
At 33% you get 165 HBD
At 25% you get 125 HBD
Then depending on the amount of collateral you put up you get a interest rate you need to cover with your payment
There would be no minimum or maximum, since you’ll find other hive members in a peer to peer market willing to lock up funds in an escrow for various rates and amounts
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