I imagine this ecosystem to never really have what it ain't capable of doing, because every bit of it seems to give birth to a whole new possibility. I can't quite tell how much informed most of the economic analysts in the world, talking down on crypto are. They are basically just paying too much attention to price volatility. The system is built to curb these situations, there's always a way to throw value around the entire place, and I can't just help but say that there's way more roll outs to increase the reach.
Many people look at loans as a bad thing, well, I once thought so, you can easily tell when you read a couple of my blog posts in the past. But basically, things are only as bad as we know it to be, the more knowledgeable you are about the functions of the system, the more you easily slip through its edges. Trading for example is a risky game, people lose money everyday on it, that's what everyone knows, but much knowledgeable individuals know that people also make a lot on a daily basis, it's all about the "know" but the believe is too influenced by the thoughts surrounding it, that's why you can see economist each time, come up to talk about volatility when we've grown past that already.
We often look at it as a gamble with a low score on winning, but truth be told, it is nothing but a win-win game. When you predicted wrong, someone predicted right, and it just keeps going, value is distributed across networks in the process, that's the whole point of shared resources it most definitely has to go round.
This is something most people ignore, that playing your cards right with crypto means you have to be extra observant, be more informed and you're positioned to often be in the winning league.
Stablecoin borrowing is lame, yep, I said it, but I don't totally mean it. Stablecoins have their own benefits undoubtedly, but when we are looking at crypto borrowing, we're looking to use both volatile assets like, say, bitcoin and ethereum. So basically, everyone has always talked about borrowing ethereum using bitcoin as a collateral, this is often mentioned when people believe ethereum is positioned to have some significant price movements than bitcoin. Of course, this is a great theory, kinda like the act of buying physical properties as a way to bypass native currency inflation, it's not exactly the same, but it's closely related because on one side, something is losing value and the other is gaining, that way you get to sell for a profit.
The beauty of this trading methods is that you get to do it over and over again, this is something that will be more functional as the crypto industry expands, trading against stablecoins will still be a thing obviously, but at times of having a somewhat stable market, people will dive in other sectors for investments.
The sometimes ignored benefits of crypto loans is that it isn't necessarily always about the sensed price movements, when you exist on a network of diverse investment options, you are not only there to watch prices but to venture into real time investments which are openly spread. The picture in essence is the fact that, having these solutions, one can borrow an asset just for the purpose of throwing it into a certain protocol.
What that means is, for example, using Leofi as the home of crypto lending that will be great on hive, say you hold a certain amount of Leo tokens, call it 10,000 Leo, and you wish to farm a new token called maybe MUL, supposing the only way to farm MUL is to buy CUB tokens and stake on its protocol, you obviously don't want to sell your Leo for cub cause what if it moons? So then, with a marketplace as Leofi where you find cubs available for borrowing, you figure you're now presented with an opportunity to borrow cub using Leo as collateral, then transfer this cub to the protocol to pool and farm MUL tokens.
This is just an example but I'm certain you get the picture. One is able to keep his holdings, yet borrow other assets using his holdings as collateral, then use the borrowed assets to regenerate income without actually having to sell it off. That way, he gets new tokens, while still possessing the borrowed assets which he can easily return and get his collateral. This is just how crypto and blockchain allows for individuals to leverage fintech as a way of sustainably regenerating income. Hive is positioned to have more tokens to farm, and Leofi is positioned to present tokens for loan and boom, we have a whole system with all functionality.