RE: Turning Hive Rewards into Real Investments: Week 4

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Thank you for the Hive, I received it. Thanks for the support so far.

TTSLA sounds like a good idea so far. It is a way for people to access real world asset via the crypto world. I enjoy the dividends I am receiving on a daily basis too as it has risen to 0.007 HBD. That is around 0.09% daily return.

The first idea sounds nice but I fear it relies on goodwill. People can undelegate and move on. For it to work, it requires designing a system where

  • I am approved for the loan
  • My keys are changed and recovery account changed
  • Delegation made to the lender
  • $20 sent to me
  • I get new set of keys

This prevents the my ability to undelegate or try to recover the account thus protecting the loan.

I tend to like the second option because it gives functionality to GLD tokens. I will love it to serve as collateral for borrowing either Hive or HBD.

I am looking at it in a sustainable way and it is somehow tricky because it involves some juice to be given out.

You launch an ICO for GLD tokens. You create 2 accounts GLD.rewards and GLD.voter
Now for the ICO, GLD tokens holders qualify for
Loans
Upvotes
Dividends

Users can also delegate HP to GLD.voter for GLD tokens that will mean they also get upvotes on their posts or can stake it for dividends or for loans.

I buy $20 worth of GLD tokens which is 2000 units during ICO.

I stake them which automatically qualifies me for upvotes on my posts from GLD.voter. I can then request for a loan of $18 to pay $20, (2% off my GLD tokens). That can be the management fee.

Then I repay the loan either by setting GLD.voter as beneficiary on my posts, or returning in liquid form over a set period of agreed time.

Also note that, my staked 2000 GLD tokens will earn daily payouts.

So GLD treasury is the ICO capital pool
Revenue stream are management fees, curation rewards from GLD.voter
Collateral is staked GLD tokens

This sounds cool on my head but there are different things to be done to make it perfect and sustainable.

  • The Loan to Value ratio must be conservative
  • Preventing Recursive collateral exploit
  • Bank run issue
  • Upvotes
  • Price
  • Inflation

I think the LTV should be set a 50% of GLD holdings. This is to safeguard against price movements and all. Imagine I borrow $18 against 2000 GLD (worth $20) staked. If price of GLD drops, I have no incentive to repay the $18 loan. I will rather the staked GLD are liquidated which is a loss for the lender.

However, with a 50% LTV, it safeguards both parties.

There is also the upvote part. Upvotes is an integral part of HIVE. It is an incentive for people to hold GLD and stake or interact with it. If users fail to delegate or upvotes stop coming in, they sell off their tokens, price drops, utility drops and the system crashes.

The ICO capital can be designed to either cater for buying Hive and powering up to encourage users and provide sustainable utility for GLD.

I also thought about inflation from the dividends, new tokens shouldn't be minted, curation rewards can be used to puchase GLD from the market and distributed as rewards for stakers.

Sinks can also be created to burn GLD tokens and make them scarce

This is my thoughts at the moment

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Thanks for the effort in the writing. I think my idea is a lot simpler than you are making it to be though. The idea is simple. If you (or someone else in the community) needs a loan they ask...and if the need is real and the person has a good reputation the funds are advanced. No interest and no repayment scheme. Just a person saying that they will repay it.

How do they repay? Delegate or purchase GLD coins. If they delegate their HP is still their own it just helps the community to get upvotes (and they are part of the community). If they buy GLD tokens even better. They get a coin and simply holding the coin shows they paid back into the community.

As for the token itself? It actually does have an account that brings in regular income and twice a day places a buy and sell to peg the GLD token at 0.01 HBD (with 2% spread). There is also gld.appreciator which buys GLD weekly if it is under the 0.01 HBD peg. Finally the @tergan account holds HBD in savings and uses the 15% dividend to buy GLD if it falls under the 0.01 peg....So no worries on having it crash and burn :)

As always thanks for the reply :)

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I think this works too. I love the functionality it gives GLD

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