And now we have "defi" on Hive(Engine). It's name - BroFi.

Arguments can be made that Hive (on the old blockchain) invented defi, before it was a thing on Ethereum and now everywhere else.

The blockchain paid an interest to holders of powered up Hive for a long time. I heard it also paid interest on SBD for a while then it was removed, and now it's back again on HBD.

In the early days, some stakeholders made use of the delegated proof of stake model Hive has to manually delegate HP for a ROI.

At a later time dlease.io was created to take care of that in a more automated fashion. What we don't have too much on Hive, and especially on Hive-Engine is liquidity for deep-pockets investors.

^Source

Leasing your stake for an APR.

Where did we hear that more recently, I wonder? Yes, of course! Leofinance will have a leasing app for LEO holders. And that's part of LeoFi.

Now back to BroFi. That is or will be (because it wasn't officially released I suppose) a project run by @brofund.

I think @taskmaster4450 described it best in a very succinct manner, in one of his recent videos: "a Cub Finance on Hive" (quoting from memory).

How is BroFi different from Cub Finance?

Let's start with the differences first. Instead of smart contracts where funds are locked, BroFi uses the standard mechanism on Hive/Hive-Engine: delegation (to @brofi).

That also means that you at no time lose ownership of your tokens, you don't put them up for sale against a different token (like you do in a liquidity pool).

What will be useful to know is how will this affect the coming airdrops. Will the airdrops count in the delegated tokens (for example for LEO)? Will it drop to you or to brofi or to neither?

BroFi is then used to curate, most likely, and will generate better rewards than a single account with a smaller stake. BroFi will pay out daily dividends to the delegators.

While on Cub Finance we know at all times the APRs and how they fluctuate, we currently don't know what kind of APRs we will have on Brofi. That might change as the project starts developing.

How is BroFi similar to Cub Finance?

And now, the similarities start.

The dividends are paid in BRO token, not in the delegated token. Exactly like Cub Finance pays rewards in CUB. BRO token is one of the solid passive investment-type tokens on Hive-Engine, from the same category as SBI.

You have a certain list of tokens which are supported and which you can delegate and expect a BRO dividend in return. Currently, this list is: LEO, CTP, HIVE, STEM, NEOXAG, LOTUS, PAL, CCC, WEED.

We can consider this list as the "pools/dens" on Cub Finance.

And delegating to brofi any of the tokens above would be like pooling or staking on Cub Finance.

There is also a ranking of the tokens, based upon votes from the BRO stakeholders.

This ranking is used to determine the weight each token has in revenue distribution, if I understood correctly.

This is similar to multipliers on Cub Finance. The difference is that BRO stakeholders decide which are the "multipliers" on Brofi, which isn't yet possible on Cub Finance, but when they'll introduce a governance token, maybe that will be the case.

Final words

We shouldn't really compare Cub Finance and BroFi. They play in different arenas mostly. But it was a fun exercise.

What Brofi offers however is something uniquely tailored to Hive-Engine token holders and, we'll see to what extent because there is some competition there, to Hive stakeholders. You can make a ROI based on stakes of tokens you don't use and tribes where you are not active. I see a win-win, for the tokens involved and for the delegators. And for a better distribution of BRO, so that's a triple win.

I'll end with this remark @raymondspeaks added in his post:

Notice the synergy here, right? Thanks to @knowhow92 for coining this. You delegate to Brofi your tribe tokens and earn BRO. Then earn tribe tokens by holding BRO, and then delegate back those tribe tokens for more delicious BRO.

Posted Using LeoFinance ^Beta