Being able to loan out and receive HIVE as a loan type would be interesting.
I'm pretty familiar with different lending protocols at this point and have actually used a collateralized ETH vault to generate DAI and then buy HIVE with it.
The downside to doing it that way is that I have to buy HIVE in DAI terms (DAI is pegged to $1, so basically $ terms).
So I had to buy HIVE at the current price of when I took out the loan. Now I have to hope that HIVE doesn't crash in USD terms by the time I'm ready to pay back the loan. If it does, then I'll have to convert back into DAI at a loss from HIVE.
With HIVE as a loan type, I'd be able to do the same ETH collateral vault but take out a loan in HIVE terms as opposed to USD (DAI) terms. Then, I don't have to worry about the price of HIVE crashing because when I pay back the loan, I'm paying back the equivalent amount of HIVE.
The upside for the Hive blockchain is that it simply adds layers to the digital economy here. It's important to have these kinds of protocols but the marketing is where the real sauce is at. If When wHIVE gets listed on 1 or more lending protocols, the marketing that the token gets in terms of investor buying pressure will be huge.
It's a win for individuals on this chain who HODL Hive and want more use cases.
It's a win for investors who want to hodl HIVE for APR but not power up (something @theycallmedan talks about frequently).
It's a win for DeFi protocols if they get the thousands of Hivers out there to use their platform.
Posted Using LeoFinance