RE: The Hive Lending Platform

Loving everything I read here. Lending is a much-needed feature on Hive but I do hope that the collateralization rate was arbitrary. Most DeFi protocols will allow you to take out a loan for up to 75% of your collateral for multiple reasons.

The most important one is a black swan event where they protocol could actually lose money. If I put in $10K worth of Hive and get $9500 out as a loan I am only risking $500 if the price goes down while the protocol most likely won't have enough time to react and will sell most of the Hive tokens at a loss.

This is how Cream finance became virtually insolvent on BSC in the past. At one point in time, I had $50 worth of collateral and a debt of $200 USDC in the protocol. Liquidity providers were the ones that took the L on that one.

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