The borrower will take loan in liquid hive from lender at a rate of 5-20% . The maxed loan amount can be 50% of the staked HP in the borrowers account.
Now u start power down on the account. Then as soon as lender gets back his loaned Hive + all interest till that date - do u return the private keys of the account back to the borrower or what?
Is this all irrespective to change in hive prices or there is link to hive prices somewhere?
All the loans are in HIVE and paid back in the respective amount of HIVE plus the interest agreed upon before the loan. Hive price compared to BTC or any fiat is irrelevant.
Ownership of the account and all keys are returned upon successful repayment of the loan.
Thnx @klye. U should get this service encoded in hive protocol through DHF funding. So that the return of account is guaranteed after the payment of the obligations. As of now - it is on the whims of the lender. Lender may or may not handover the account back to borrower as it is not enforced by base code.
Oh, the lender has no control over the borrowers account. All of that is handled by the hive.loans service. Powerdowns go to the hive.loans account and are then distributed by percentage of capital of the loan supplied back to the lenders.
It would be cool to see this on a chain level, but it's unlikely this will happen.
Likely couldn't get DHF funcing for this as it's closed source to prevent anyone on steem from taking the code and running a similar service.
Once the loan is paid off and the account is returned to the owner: Does this mean the borrower gets a new set of keys from the new recovery account or would that be redundant?
I ask because there are so many aspects of security that I don’t want to assume that I understand all threats to accounts in this platform. So recognizing that you may see things I don’t, I ask
Thanks
Yep. The user would have the option to continue using the keys the hive.loans service used to take over the account for the loan collateral, but also have a 1 button click to generate new keys (on their side) and submit them using the previous keys.
(There is actually a double key set change that happens on each change to prevent abuse of recovery account key functions)
Thanks