Any ongoing premium to wrap will help give out red flags but it'll be too late 90% of the time. Malicious activity will be easily hidden under the guise that the wrapper doesn't have collateral to expand the mint at the moment. Once sufficient bull cycle begins to end it would be highly profitable to rug BTC, sell for stable asset and then recycle to BTC at bottom of market.

Reputation is a tough metric. SBF was reputable in many circles until he wasn't. I'm afraid this will lead to decentralized versions of the same story.

If this is going to give a discount based on Hive reputation that's an even bigger issue since Hive's reputation system is extremely gameable and already very unreliable. Theres many 50 level accounts with better true reputations than 70s that just built rep by being early whales. I'm thinking people like Bernie compared to others that he's destroyed the rep of over time.