Best practices and patterns in ViewModel + Data Binding

Looking through the samples I seen 2 approaches to MVVM using Android Architecture Components.

First approach:

1. ViewModel provides LiveData
2. Activity subscribes to LiveData
3. When observer called Activity is setting data to ViewModel ObservableField.
4. Whole ViewModel is passed to binding.

5. In xml you just set ObservableField as value

   <ProgressBar
       android:layout_width="wrap_content"
       android:layout_height="wrap_content"
       android:layout_gravity="center"
       app:visibleGone="@{viewmodel.listLoading}"/>
   
   <android.support.v4.widget.SwipeRefreshLayout
       android:id="@+id/swiperefresh"
       android:layout_width="match_parent"
       android:layout_height="match_parent"
       app:refreshing="@{viewmodel.listRefreshing}"
       app:onRefreshListener="@{() -> viewmodel.refreshList()}"
       app:visibleGone="@{!viewmodel.listLoading}">
   
   

Pros: I don't need to pass state (for example "loading"), as I update listLoading ObservableField in ViewModel as this:

val listLoading = ObservableBoolean(false)
/** other observable fields go here **/

val list: MutableLiveData<List<Item>> = MutableLiveData()

  fun loadList() {
        listLoading.set(true)
        repo.getList { items ->
            list.value = items
            listLoading.set(false)
        }
    }

Cons: Are there any cons in this approach?

Second approach:

1. ViewModel provides LiveData
2. Activity subscribes to LiveData
3. When observer called Activity is passed to binding
4. Only needed object (pojo) is passed to binding

Pros: Any pros of this approach?

Cons: State should be returned from ViewModel. In this sample from Google data is wrapped in Resource object.

First approach is used in another sample app from Google

I would like to know what are pros and cons of both patterns from developers with more experience working with Android Data Binding and Android Arch Components.