Hive Finance Really Starting To Take Off

in LeoFinance3 years ago (edited)

We know that 2020 is the year for DeFi. The explosion on Ethereum is absolutely stunning. At present, there is somewhere around $14 billion locked in contract on that chain.


Since the world found out about this capability on Ethereum, things have really taken off.

Of course, this is really nothing new to people on Hive. The idea of getting rewarded for staking tokens is nothing new. We have seen it in varying degrees since the very beginning.

To start, simply by powering up HIVE, it is adjusted each moment for inflation. Thus, a part of the inflation pool is given to each account that has HP to offset some of the rate.

At the same time, many used @dlease in the past to get a return on the HP. This was a form of yield farming, long before they called it that, since token holders were seeking ways to improve their ROI.

The addition of Hive-Engine added an entirely new layer. We saw the ability to create tokens, many which followed the Proof-of-Brain model. This made sense since that is what most people knew.

Over the last couple years, we saw more addition in the experimentation field, much of it with great success.

@spinvest started as a investment club that utilized the powering up process to generate more value for the token. This led to both on chain and off chain investment which, over the past year and a half, has grown significantly in value.

We saw the addition of @brofund follow a similar pattern. Although a bit different in that it did not focus upon the base operations of Hive as much, it still was able to generate some nice HIVE rewards. At the same time, it did very well with its use of many of the Hive-Engine tokens, especially some miners.

Most recently, we saw a few other projects going live.

@lbi-token is a project that stands for Leo Backed Investments. This is modeled after SPInvest. In under 12 hours, more than 50,000 LEO was sent over, equating to more than $15,000 USD.

@nealmcspadden put together a token that is a loan-bond type program. People buy the token and receive an annual return of 15%. That is paid weekly.

Finally, we have the INDEX token. This is the first of its kind on Hive, at least to my knowledge. Like the name says, this is an index fund similar to any general index fund. In this instance, it is focusing upon Hive-Engine tokens. Each INDEX token is representative of a piece of the tokens that are acquired.

These are just some of the projects. There are likely more that are being overlooked so add them to the comment section.

Mentioning of these projects is not necessarily an endorsement of them. This article is meant for informational purposes only.


All this is a big step forward. While the numbers certainly do not compare with what is taking place on Ethereum, it is vital that Hive start to create more wealth centers.

So far, the financial value on Hive lies in the native token. The wealth is centered in the hands of the HIVE holders. While this is a great start, it is a far cry from a resilient system.

If we view Hive as a virtual entity, we can see how the comparison fit.

The most resilient economies are those with many wealth centers. Take a country like the United States. There are large concentrations of wealth spread throughout, in many different areas. There are not just a couple places where this is found.

At the same time, the economy is more than one or two industries that drive it. Economies that are structured in this manner, such as Russia and Saudi Arabia with oil, find that when that sector enters a bear market, their entire economy is crushed.

Looking at the Hive economy, it is vital that people are being rewarded in many different manners. However, to receive tokens from a community that has little value does not do a great deal. This is why Leofinance is starting to help this process along. As the value of the platform grows, the token appears to be following.

This is not only providing individuals with more resources but it is also another wealth center on Hive. It is similar to the United States having New York City and then starting to grow Chicago.

These abovementioned products that are helping to form Hive finance could help this process further along. As returns are realized, the value of the projects keeps growing. This would benefit all who are involved in those projects.

We see a lot of discussion about the adding of smart contracts in addition to whether to bring out SMTs. While it is of benefit to pursue SMTs on the base layer, the secondary layer of a decentralized smart contract system is crucial.

True financial innovation is only just beginning. Smart contracts open the door to so many possibilities. However, to achieve that, trust is required. The individuals/teams behind the project mentioned have a following that has come to trust them over the last few years. Yet that trust does not extend outside of Hive.

Here is where smart contracts can pick up the slack. A decentralized layer will enable people to put up projects where the code provides the trust. Certainly, one has to be mindful of exit scams and things of that nature, yet at least in terms of the core trust, the contract is what provides it.

For now, people such as @raymondspeaks, @nealmcspadden, @silverstackeruk, and @jongolson have built up enough trust (and a track record) to introduce successful projects of this nature.

This is helping Hive Finance to start to take off. It is forming an entirely new use sector within the Hive ecosystem.

If you found this article informative, please give an upvote and rehive.

gif by @doze


Posted Using LeoFinance Beta


This is great. Every new update that is happening in the ecosystem is great for the health and development of the platform. As you mentioned, the focus should be to expand the reach of the ecosystem outside of the loyal user base. I am not sure how we can do that but that is the most important task in hand alongside the core development. I know it will take time but things can move fast as shown by the champion team @leofinance.

focus should be to expand the reach of the ecosystem outside of the loyal user base.


Posted Using LeoFinance Beta

I think it all starts with having options.

Gaming is getting bigger on Hive, which is a bonus. Hopefully those project teams are starting outreach programs.

As for the tribes, many are stalled out so it appears tough. I would say that Leofinance has a great shot at reaching out and attracting people. The development moves will have a chance to alter things. It is up to the community to spread the word.

Posted Using LeoFinance Beta

For sure. May be that's the reason these tribes and communities are required to be more than active to bring in people from outside Hive. Add new people, come up with innovative ideas and show people how they can utilize their valuable time on their platforms.

Posted Using LeoFinance Beta

Hard to bring people in if it is a dead tribe.

People will not want to be somewhere that is dead.

Looking at many of the tribes, it looks like little has changed in a year. To me, that is the epitome of the problem.

Posted Using LeoFinance Beta

That is pretty awesome. I didn't realize there were so many DeFi projects over here on the Hive chain. It will definitely take a while to get to the point ETH is at (if we ever do), but I think it is cool that the possibility is there. I took the opportunity to participate in the LBI project this morning. I have some high hopes for that one.

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Well they aren't remotely close to DeFi. They are finance but not decentralized.

To start, they are project on Hive-Engine, which is not decentralized. Then, there are individuals involved so trust is required.

However, we are stepping things up at least in terms of what is created. The opportunities are there.

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Yeah, it's all super interesting to build these projects on the hive-based platforms. These kinds of things are restricted for whales in other places because of the gas/staking setups of those other platforms.

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These kinds of things are restricted for whales in other places because of the gas/staking setups of those other platforms.

Damn that is something that I overlooked but is an essential point.

On a blockchain like Ethereum, the gas prices are such that the numbers have to be big (which they are). $14 billion is nothing to sneeze at, although small potatoes in the world of finance in general.

The fact that we are opening up the opportunity for even the smallest of account to participate could really be a pivotal point going forward.

Inclusion has a way of attracting more money. We will see how it works out.

Posted Using LeoFinance Beta

Great news, @taskmaster4450.

Each improvement must be celebrated.

Posted Using LeoFinance Beta

Yes it should be.

If we are not going to pat ourselves on the back, who will?

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Really all the projects on the table look promising and profitable.

And the fact that so many developers promote new token projects helps people to choose which one to keep and this promotes growth.

Very interesting all these projects.

Posted Using LeoFinance Beta

Sometimes ago I sent a fellow hive member some amount of money to purchase some token for me so I can be enjoying the ROI. It was a fairly huge amount of money but he didn't disappoint. Like you said trust is established in this sort of thing and it's wonderful that hive creates a haven of like minded people who can build trust despite not having a face-to-face contact.

Posted Using LeoFinance Beta

Thanks man. Honored to be mentioned along with those amazing contributors here!

Just like Neal said, this used to be reserved for the whales and 'higher ups'...But now, anyone can create amazing tools and resources with both Hive and Hive-Engine.

Future is very bright :)

That was a major oversight on my part because it is an enormous piece of the puzzle. I am glad Neal pointed it out. Changed the narrative to a more important level.

I agree with you that the future is very bright.

Posted Using LeoFinance Beta

I think it’s about time you change your Steem background on your profile 🤪

Posted Using LeoFinance Beta

It will be done soon.

I have a new logo that was created. Started using it on my videos, will be adding it to my profile background.

All part of the "upgrade" process.

Posted Using LeoFinance Beta

I hope that doesn't mean the cat is going away, it's iconic 🐈

Thank you for sharing all of these projects in one place. I'm happy to say that I have been following these developments well enough to not miss any of them. I haven not been able to invest heavily due to lack of liquidity and I have a very small portfolio. But I do wish Best of Luck to all these projects and the investors who join in.

Let's not forget that reason Ethereum is holding up well is DeFi. Without DeFi we would have seen a significant migration of developers adn users towards cheaper, faster blockchains like EOS (or even HIVE)

DeFi on HIVE combine with @leofinance and all the other front ends have amazing potential.

Posted Using LeoFinance Beta

Yep it look healthy and this started take off to reach the new heights like never before there was project like investment before but not like this one

now the only thing left, is to onboard more users!

Posted Using LeoFinance Beta

$150,000 USD in value locked up so far in these projects. It will be interesting to see how this space looks in 12 months time.

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You have put together in a post several ways for anyone to invest in Hive blockchain. Even more new projects were presented and I will research for sure. Through the reputations that @raymondspeaks and @nealmcspadden and the others have in the community, it gives us more confidence to participate.

I still believe that HIVE will prove to unbelievers its true potential. Meanwhile we are taking the opportunity to choose the best investments that fit our profile.

Posted Using LeoFinance Beta

Well glad to say I have all the tokens which you mentioned except the YieldBond , I am short on Hive so might buy it soon .

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I am finding it hard to power up Hive for HPUD, so many "excellent" opportunities exist in this chain today.

Let build stake in one of them and use that stake to build in other. May be keeping egg in one basket may help in growing faster.

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We really need these DeFi stuff in many places as possible. There are some very concerning developments along with the crypto boom. Governments and banks are using this as an opportunity to regulated things so much more.

So far we could just buy crypto on exchange and send them to a wallet we own or even just donate the crypto. Now regulation is going to demand KYC being done on the wallet you're sending your crypto to. Think about how many troubles this is going to create. We'll be getting pushed towards banking institutions even when we want to own crypto.

Posted Using LeoFinance Beta

Slowly but steady! We're getting there and I am ready!

Posted Using LeoFinance Beta

We do not know what can truly
built on hive blockchain.
What a combination when you mix innovation
with trust.
When it works to its purpose
people will flock


Posted Using LeoFinance Beta

So far, the financial value on Hive lies in the native token. The wealth is centered in the hands of the HIVE holders

right but I think so tier 2 tokens like Leo, CTP has changed the scenario a bit. Right now Leo value is way higher than hive but I still hope Hive will be high in 2021. let's see how it goes.

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