I don't see anything wrong with arbitrage trading, it keeps markets more efficient and if people can make a spread and then pay capital allocators, why not?

The reason I say HIVE loans are different is because if I lock in my HIVE or HBD for a loan, all you then need is a P2P off-ramp, lets say I am willing to accept HBD for my local currency, then South Africans can sell me HBD for Rands and this can be replicated in a lot of countries. I will naturally take my fee, perhaps its less than that of exchanging it with a centralised service and then you can buy your real-world goods.

In addition, the guys at CTP have already set up a WordPress plugin so consumers can actually purchase with HBD directly on WordPress sites with their HBD.

Also, I don't see it as that simple, many of CEL's users are 1 BTC or less so they get a premium rate but on a small balance, when you secure 1 BTC or more you get a far lower rate. So while it looks like a lot the nominal payouts are small.

While the loan interest charged may be 1% the value of the loans are larger so that 1% is a sizable amount of fiat or Bitcoin and in that they make their spread and pay an attractive yield.

Yes, there's some juggling involved but that's no different from any fintech company. Not saying they can't go bust, but it's still a mathematically feasible

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