If HIVE is stored on a 2nd layer, it cannot be used for Resource Credits on the 1st layer. This means that users must have both HP and the token to be able to use the app. This is too complicated for new users.

If DeFi were implemented on the base layer with SMTs as per original design, this would allow apps and communities to work with just their token, because HIVE stored on the 1st layer can be accounted proportionally to their holdings of the app token for calculation of RCs.