This make huge sense, if yyou believe in the longterm value of the asset, then you should do this, especially when there are no liquidations based on price. Bitcoin lending should be lke this. Afterall we all believe in the longterm value of bitcoin!!
RE: Hive DHF Proposal #373 HiveComunityBank : Technical Notes: Why HiveComunityBank Collects Interest Upfront and Does Not Liquidate Defaulted Collateral