Leofi or Decentralized Finance on Leofinance
Ethereum DeFi has high transaction times
I was thinking about the financial significance of a lower cost credit facility. I understand the cost of transactions on the Ethereum blockchain, so using MakerDao and Uniswap for DeFi transactions or the other DeFi platforms on Ethereum is expensive.
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So would DeFi on Leofinance DEX or Hive Blockchain be a WIN-WIN for proponents of decentralization and decentralized finance?
How do Collateralized cryptocurrency loans work?
I think we can see many potential positives from LeoFi and a Collateralized loan capability. For those of you unfamiliar with how this works here is a quick explanation:
So basically you deposit a specific cryptocurrency, transform it to a non-fungible version, pledge it as collateral for a loan, and receive a loan in the form of a stable coin. Now you can exchange that stable coin for dollars and loan it out or use it to buy more cryptocurrency you want to stake!
So what would be the advantages of DeFi here on Hive with Leofinance?
#first, decentralized finance on Hive would have much lower transaction fees as Hive is much, much cheaper then Ethereum. and faster transaction times the DeFi platforms on Ethereum.
#second, decentralized finance on Hive would have much faster transaction times then DeFi platforms on Ethereum.
#third, decentralized finance on Hive where Leo tokens could be used as collateral for Collateralized loans, would allow Leo Hodlers an opportunity to both hold Leo and cash out Leo via Collateralized loans for Hive Backed Dollars. This would give people options to use their Leo to pay bills without actually selling it. Additionally this gives investors a way to invest in both Leo and Hive, or Leo and another Altcoins.
#fourth, this allows Leo investors to cash out via a loan with completely different tax consequences. Mostly positive!
There are others....can you think of other advantages?
So if @khaleelzaki announces , a credit debt facility, on the Hive blockchain, and it is issuing collateralized loans, I think this would be great.
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