Building DeFi Platforms

(Edited)

The banks are in the news and for good reason. Over the last few weeks, we see how liquidity is becoming a major issue.

While many point to cryptocurrency as the solution, I think we need to focus more specifically. The solution to the banks is decentralized finance (DeFi). This is where we can create the alternate system.

There is a lot happening with Hive. Much of this has to do with infrastructure. We are in need of a robust smart contract platform. There are a couple of possibilities being worked upon.

For the sake of this article, we will presume that at least one of these will roll out this year.

That means the potential build layer 2 solutions will exist.

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Leofinance Leading The Way

Leofinance should lead the way into the realm of more advanced DeFi services. It is something that makes sense since it is the forte for this platform. Up to this point, the development was typical DeFi offerings.

One of the biggest services that is required is to take assets and turn them in collateral. This helps to leverage the value. This can be coupled with more opportunities within the platform which will grow things faster.

Debt is a great tool if used appropriately. By leveraging the $LEO token , as an example, the value can be put to work. If this can be directed to something that further builds the platform, the value can be fed right back to the $LEO token.

It becomes a self feeding proposition.

Leo Bank

This becomes overused to a point, especially so far in cryptocurrency. However, we have to consider what is taking place in the current financial system.

That said, if we think in these terms, we can see how building a financial services epicenter right here on Hive (and the associated sidechain) is possible. We have value not only with $LEO but also $HBD. This can be leveraged using a derivative of that coin as a centerpiece for the entire financial system.

Consider some of what can be created:

There could be different decentralized exchanges (DEX) with different products. This could be both funigible and non-fungible assets.

We are embarking upon the age of tokenization and it is a good idea to think about placing Leofinance in the center of this.

Extending Offline

Could Leofinance be a part of bridging real world assets to blockchain?

It is something to think about. The time to plan is now. We know the technology is not ready. However, we have to start thinking in that direction.

We should be considering a NFT platform similar to Open Sea. With that, you can tokenize whatever is needed. NFTs can serve as an ownership token, whether the asset is digital or real world.

There is a huge amount of potential sitting out there for us to think about.

If you found this article informative, please give an upvote and rehive.

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(Edited)

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(Edited)

LEO can be part of the Defi platforms and it has that potential just based on the Cub/PolyCUB. There are a lot of other ways but I wouldn't mind having some of the other options added. It would require quite a bit of work to get things working and I think the loaning part will be quite hard to implement.

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I think Liquidity Pools would be killer for the Hive Financial System, built on Layer-2. Here is what i could envision just based on assets that currently exist (for the sake of reference, the derivative of $HBD used as the central foundation can be referred to as $sHBD as suggested);

Layer-1 Bridged Pools:
$sHBD-$LEO
$sHBD-$HIVE
$sHBD-$SPS

Layer-1 Wrapped Asset Pools (Polygon, BSC, Ethereum)
$sHBD-$WLEO
$sHBD-$pHBD
$sHBD-$pHIVE
$sHBD-$pLEO
$sHBD-$bHBD
$sHBD-$bHIVE
$sHBD-$pSPS
$sHBD-$bSPS

Synthetic Assets:

$ETH, $MATIC, $BNB, $ATOM, $SCRT, $SHD (here's where cross-platform DeFi can be created).

The big fear in Web 3 is centered around privacy of data (in addition to ownership and control).

Shade Protocol is developing Private-by-Default DeFi built on the Secret Network. While it is a misnomer that the $SCRT token is private (it isn't), $sSCRT is private, as are the other wrapped Secret Tokens (such as $sMATIC, $sXMR, $sBTC, $sETH, $sBNB, $sATOM, $sOSMO, $sJUNO, etc).

Imagine, bridging the Hive Financial System, which is transparent and publicly-verifiable, with the private Secret Network DeFi through Shade Protocol, allowing for liquidity to flood in from $sXMR, $sSCRT, $SHD). It would also enable better capital flows, because there could be far more avenues for the capital to move, not just trapped within the Hive Ecosystem.

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Creating an NFT platform similar to Opensea is very sensible but how do you think it can penetrate the NFT market?
I hope you know that people are used to Opensea

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