Summary:
The strongest points are that HCB gives HIVE holders liquidity without forcing them to sell, which preserves long-term upside, may avoid immediate taxable sale events, and protects borrowers from flash-crash liquidations by using yearly reviews instead of twitchy real-time oracle triggers. The model is also easy to understand: borrow up to 50% of collateral value, keep the HIVE powered up in custody, pay a clear upfront fee plus low annual cost, and let borrowers repay later while keeping any future appreciation. Its best selling point is psychological as much as financial: it turns HIVE from “an asset I must sell when I need cash” into “productive collateral I can hold through cycles.”
The Hive Comunity Bank (HCB) was created to solve a big problem: usually, if you need cash, you have to sell your Hive tokens. When you sell, you lose the chance to make money if the price goes up later, and you might have to pay taxes on that sale. HCB changes that by letting you keep your Hive while still getting the money you need.
Think of HCB like a safe for your digital treasure. You put your Hive into the bank's vault, and the bank gives you a loan worth up to half of what your Hive is worth. While your Hive is in the vault, it stays "powered up," which means it is protected by Hive Wallets 13 week timelock. It takes 13 weeks to powerdown all your Hive, and seven days to receive the first 1/13th of the wallet balance. Plus every day the wallet announces a powerdown is in progress. .
No "Flash Crash" Worries: Most crypto banks use computers called "oracles" that watch the price every second. If the price drops for even a minute, they might sell your coins without asking. HCB is different; we don't do liquidations, so your Hive is never at risk of being sold because of market volatility or a bear market.
Avoiding the Tax Man: Because you are borrowing money instead of selling your coins, you don't "realize" a gain. This means you often won't owe immediate taxes, which keeps more money in your pocket. You of course must check your particular countries tax policies on realized gains on investments and make sure that loan proceeds are not considered realized gains.
The "Magic Loop": You pay all the interest for your 12 month loan upfront, but if you should be unable to pay back your loan at the end of the year, don't worry, your HIve is safe, and we won't sell it. However HCB uses a smart trick where the bank gives you a tiny extra loan each year to pay your small 1% penalty feefor not paying back your loan. This means 1% of the loan amount for the whole year. It would take 50 years for this interest penalty charge to consume your Hive.
