RE: Hive Power lending service: a win-win business
(Edited)
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Already @okarun answer it, but I will say more, this lease don't cost anything to the person that take the HP loan, they receive their full amount of HBD when they decide to end the lease.
The lender earn Through the interest receive from Savings APR.
One get "free" HP the other earn HBD with and unbeatable APR without doing Power Down.
!BBH
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It's definitely a win-win situation.
Yeah, I can see that. It's not "cheap" from borrowers' point of view, compared to hive-engine leases, where IIRC you can hunt for HP leases around 9-13%. But it adds easy entry point and some token-price-fluctuation safety for sure. From lenders' point of view, it's super lazy, it's nice that unused HP can be turned into rewards going directly into HBD savings. Of course if lender wants to build up HBD savings. Otherwise, up to 30d waiting time for "claim" then 3d to transfer. Still better than powerdown time if one would try getting own rewards as HP (OTOH, one could just switch to HBD rewards I guess..). Nice, clear, idea! HE leases have their share of users, so I guess this one would have some as well
Ooh, I get it now. I see what you mean, and what could be its selling catchphrase.
However, it's not like the "lease don't cost anything to the person that take the HP loan. It costs them exactly the HBDs APR. They lock the HBD in the lease, instead of locking them in savings and getting the savings reward for themselves, so no free lunch for anybody.
However, it would be certainly easier to use than getting rewards in tokens and then having to convert, and also it's "more stable", as you get direct cost/reward guarantee (borrower knows they lose APR from those HBD they locked in the lease, while lender knows the exact HBD value of the rewards with no side token price fluctuations).. on the other hand, the lender still can't liquidate that savings-HBD for 15 days on average (savings reward paid every 30d, so avg wait time ~15d)
Great, thanks for explaining!