Hive.Loans Big Vision

in LeoFinance2 years ago

Many of us have heard of the application Hive.Loans. This is a project that recently went into beta testing. While the platform seems pretty straightforward upon release, there is a big vision here.

So what is Hive.Loans?

Basically it is a peer-to-peer lending platform that uses one's Hive account as collateral. In other words, the Hive Power that is in the account can be used to take out a loan, enabling one to avoid power down time and operate in a liquid manner. This is most attractive to traders who want to take advantage of large moves in the market. Here is a way to avoid the power down period and be able to sell liquid HIVE into the market.

This also can see how this could be appealing if there is an opportunity one wanted to get into, especially on a short-term basis, yet still not want to wait 13 weeks.

For example, suppose there was an airdrop that one wanted to be a part of that was occurring in a couple weeks. A Hive loan could be employed to purchase whatever tokens are needed, the drop received, and the loan paid back. The short-term nature of the loan means there wasn't too much lost in terms of the transaction, an amount that would be made up by the increase in tokens in the drop.

Finally, there are always those emergency situations in life whereby one needs cash fast. This is a way to get much of one's account holding out without having to wait weeks (or months).

From the lending side, we see another opportunity arising for people on Hive to engage in decentralized finance. People who are willing to put up liquid Hive to fulfill the loan are able to garner a return on their money in a low risk manner. There are no rug pulls or anything like that to worry about and the loans are collateralized by the Hive accounts. Since the currency is all in HIVE, there is no concern about price drops or under collateralization.

The platform has 3 basic components, a couple which can offer up large expansion.


This one is pretty straight forward.

Many platforms offered peer-to-peer lending and this follows a similar idea. One simply decides to offer up a loan (or ask for one) with an associated rate of interest tied to it. When another party agrees to those terms, a transaction takes place.

The Hive account is used to secure the loan and the liquid HIVE is paid. Whatever the terms are on the loan is paid back through the power down that is enacted. One can pull out up to 70% of HP in a loan.

Once Hive is paid back, everything is returned as before. During this period, one is able to post and transact in the account, enabling one still to operate under his or her brand if desired.


This is a piece that is going to be evolutionary.

To start, it only has a single pair, Hive and HLS (the native token of Hive.Loans. However, over time, this is going to expand to include a lot of different tokens/coins. In fact, the plans are to take this multi-chain, enabling the swapping of most any token out there.

Therefore, we could eventually be looking at a decentralized exchange takes all tokens such as Bitcoin, ERC-20, or Hive Engine tokens and can allow for exchange into something else.

For those who have a bit of vision, on a decentralized platform that wipes records not long after they happen, this can be rather intriguing if implemented. It could be a new step in the privacy game.

Futures Market

Here we have a feature that can be really interesting. We will have to see what it opens itself up to, but if it is expanded greatly, this could be a popular platform throughout crypto.

Futures markets are huge around the world. Contracts that are purchased total into the trillions. Most commodities, equities, and currencies have futures markets. We even see them existing with Bitcoin and Ethereum.

Hive.Loans plans to implement a futures market. This will start with HIVE for simplicity. However, over time, if the desire is there, it can be expanded to incorporate a host of things. All the markets just mentioned could have a synthetic version of the asset created and traded on this market.

Either way, futures trading can open up large scale volume for a currency, something that HIVE seeks.

Hive Smart Chain

This is not actually a part of Hive.Loans but it is part of the entire vision.

The goal is to achieve true decentralization. Here we see the end game taking shape. If all of this occurs on a decentralized chain like Ethereum, then there is little that can be done about it. It becomes a true community initiative that is open source so that it can be replicated many times if need be.

Of course, a major difference between Hive Smart Chain and Ethereum is the transaction costs. We are all aware of the challenges facing that platform. This will be orders of magnitude lower ensuring that all can afford to participate.

At the same time, the currency that will be used to run the system is HIVE. Hence, we see another sink opening up for the token. Each time a transaction takes place, the fee to the validator is paid in HIVE. This will open up the token to a lot more people if the platform becomes popular.

In addition to Ethereum, we saw how quickly Binance Smart Chain exploded. As a lower cost alternative to Ethereum, the fork of the EVM software became very popular. This, however, is entire centralized with the ones running the chain hand chosen.

Essentially, Hive Smart Chain seeks to offer the decentralization of Ethereum with the miniscule fee structure we are starting to see become popular.

Once this is live, Hive.Loans can be reworked to run on HSC. It is at this point that the platform is open source software running on a decentralized network. This, coupled with the different layers of encryption that are already being implemented, and we can see how this system is safe to use while providing a benefit to the entire community.

For the time being, the first stage is in beta and being tested. That will continue throughout the month of June. If all goes well, it will be opened up to more people come July.

The roll out is purposely slow to not only catch bugs but ensure the security throughout the system.

There is a big vision here. We will have to see how rapidly the coding matches up to it.

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This seems like something substantial, if it delivers. Free market power, how crypto was meant to be. There are ways it could go wrong or be abused, but that's the free market for you, it's a bit dangerous and there are risks to be measured and calculated. It it works it would be a big boost of added functionality. I hope it doesn't require smart devices, bank accounts, or government ID.... that's the technocratic nightmare we're trying to avoid. I hope it keeps things as free as possible.

Now that's something. I don't know why we still have that 13 weeks power down period, but at least we will be having doing much more than providing the opportunity of having access to an equal amount of liquid HIVE to our locked tokens. I like this type of developments on Hive. Maybe one day the world will hear about us...

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The power down time deters the exchanges from powering up as well as serves as a security feature. At the base layer, that isnt the worst idea in the world. I dont think we should have that at the layer 2 but to protect the main chain, it is okay in my opinion.

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13 weeks is not enough...for a cash cow,it should be instant.. right?

I'll be excited to see how Hive loans turns out in 2023 :))) not throwing shade at klye or anything but he is still a one man team as far as I know

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Well it is already out so it is being tested. If the major bugs are cleared up, you will see it opened up more next month.

I am not sure where you get the 2023 when the code is already written and other developers are already testing it.

Now HSC, that is another story. We will see how long the code takes to roll out since that is a lot of programming.

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I was partially exaggerating and partially referring to the whole vision becoming reality, that's how I came up with the number. Precise stuff I know :P

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I would be interesting in your system regarding the stock market.

Where is Tesla's price going to be in a year?

Can you run that your model? LOL

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if Musky boy continues to say dumb shit and if other auto manufacturers can ramp up production enough I don't think tesla will remain as hot as it is now

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Don't buy the hype. The other companies have a lot way to go to catch up. The lead Tesla has is incredible.

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I'm starting to see a steady increase in electric BMWs and VWs even though where I live the charging infrastructure is total garbage. Teslas are very rare in comparison. In Europe Tesla will have a lot more competition going forward, there are a lot of german car fanboys here

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I think the Hive Loans is still in beta but has there been any updates on HSC?

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No that is going to be developed after HSC.

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HiveLoans we are looking at another potential sink for HIVE couple with 3Speak's project at some point HIVE is going to appreciate in price based on these factors.

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The Spknetwork certainly opens up many doors for Hive also. We will see how much HIVE that can pull into the SIP over the first year.

By the end of next year, if released in the 4th quarter of this one, I imagine they will have a lot of HIVE locked in there.

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I did know about Hive Smart Chain. Even voted for the proposal. I really want to see it happen. Hive.Loans could be a huge deal. Even if we don't get outside interest fast we've got lot of large stake users.

There are so many trading plays you could do with this type of thing. I really really really hope this'll become a success!

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We will have to see how the development unfolds. This is going to be very exciting over the next few months. I hope we see things rolling out fairly quickly.

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Wow that's awesome. Its really needed and I think it's a great vision and will take the hive community to great heights. Kudos to the development team, A Great Initiative and towards a great vision. Keep it up 😊🙏

It will be huge to have that in here. That will take certainly hive to another pedestal. Excited about it.

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This is going to be a much larger project than I expected. Hopefully it will be launched in phases.

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It is in MVP right now on Beta. I have no idea about the development schedule over the next month or two.

We will have to wait for an update.

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I’ve been watching this since I first discovered it a few months ago. I’m really excited to see how it goes.

Yes we will have to see how the development goes especially the tie in to HSC when that is developed.

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Yes! Especially that. I’m looking forward to being able to leverage individual tokens rather than the entire account.

I wish my dad was around to see all this. In a couple of years I’ll probably have a 100k line of credit collateralized by my Splinterlands collection. I don’t know if he would laugh or cry.

One question how will it work with the return or how will it be guaranteed that the loan will be repaid?

The loan is paid out of the power down.

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when i try to use the platform it asks me to enter a beta pass ...where do i get one?

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I isnt open beta right now. There are people who were given codes I guess. They are going through limited testing before opening it up to more people.

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I'm very excited about this, I want it to arrive now. I can think of a use case in HIVE itself. It would be renting HP through I don't know how profitable it would be, I think it depends on the time to return the loan. In some defi services there is no time limit, I don't know how it will work here. Returning the loan with healing rewards while growing the HP of the account would be great.

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The returns will depend upon what the market bears. How much will be offer and ask for. That will be decided by the users.

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This one is a big deal. I think I was the first person to shoot some hive at the project. I hope to see it get legs and shortly after that some wings... It solves some serious issues while allowing Hive to keep some serious security. Win-win.

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Sorry, out of BEER, please retry later...

Very nice going. Its very Wow and hive will go to moon.


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I like Hive loans. I like the vision of the Hive smart chain.

Hice native token for the sidechain = superior. This is one of the biggest issues i have with Hive Engine. It is great, but not super connected to Hive.

The smart chain will fix it. I hope it will work out like the Binance smart chain in a proof of stake way. And not proof of work. As far I remember some hybrid version was planed. But I'm not up to date.

The most I like is the fact of Soft wallets. So onboarding problems would become a thing of the past. Everyone can use Hive.

I would also expect Keychain would implement it if all works nice :)

If I think about the mobile keychain app and a perfect working sidechain + defi and so on, I can only say, I love it.

It has enormous potential. The implementation of this could end up being huge. We will see how many people jump on board once it is opened up completely.

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It is something that can chance hive a lot. Bullish!!!!

I think longterm loans should not be user to user. User to code would be my favour.

Like HBD generation with lock-ups. Would make HBD also more stable. Because if HBD should fall under 1$, you can pay back your loan cheaper :).

If it's more expensive, simply take a loan.

Sounds really interesting. Glad to see it coming.

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good information

Let me know when you guys open to more users for testing. I usually do a lot of testing on the games side of HIVE, would not hurt to explore/test this one too =)

Hola a todos. Muy buen aporte. Pero no veo mal el sistema del periodo de las 13 semanas puesto lo veo como un sistema de seguridad, ¿como harían por medio del sistema de prestamo para la creación de cuentas que realizan plagios ? O que no aporten en la comunidad. En ese caso deberia haber algo que obligue a la persona a comprementerse con la plataforma si decide pedir un prestamo.

Hello everybody. Very good contribution. But I do not see badly the system of the period of the 13 weeks since I see it as a security system, how would they do through the loan system for the creation of accounts that carry out plagiarism? Or that they do not contribute in the community. In that case, there should be something that forces the person to understand the platform if he decides to ask for a loan.

This is still looking better every time I see it

This is gonna change a lot with hive and I'm glad I bought into this when I could :)

Thank you and have some !PIZZA



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Seems interesting

This sounds great, these types of applications are what Hive needs to get momentum. One question, if I take a loan should I turn off my coins in the same process?

Hive Smart Chain.
This one will be huge.

Bang, I did it again... I just rehived your post!
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