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Offline Akado

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Lending DApp
« on: May 01, 2015, 08:40:47 PM »

Found this whitepaper https://s3.amazonaws.com/loancoin/whitepaper.pdf

Lending DApp is a global, decentralized crowdlending network that runs on the blockchain. The network’s “gas” is LoanCoin, an asset-backed,
income-producing cryptocurrency. The network can provide loans in almost any currency, anywhere in the world, while significantly compressing
opex (leading to lower rates for borrowers and higher yields for investors). From a coinholder’s perspective, LoanCoin is similar to a savings ac-
count (without FDIC insurance), but with a higher yield, no minimum balance, greater transparency via the blockchain, and all the benefits of
bitcoin, such as peer-to-peer transfer, privacy, globalness, etc. A centralized prototype of LoanCoin is currently running on top of Counterparty.

We are acting as the sole loan officer and investing on
BTCJam, a third-party peer-to-peer lending platform
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Offline Akado

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Re: Lending DApp
« Reply #2 on: May 02, 2015, 12:58:42 PM »
Interesting.

The Lending DAC was maybe the one i was more excited about and still am, but it seems like it will take a long time before we have something like that. I guess we would need Vote and ID verification on the BitShares platform first?
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Offline xeroc

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Re: Lending DApp
« Reply #3 on: May 02, 2015, 06:42:05 PM »
How is lending supposed to work if it is backed by a highly volatile token i.e. loancoin?

I dont yet underatand the whole lending on the blockchain concept but wouldnt bitUSD make alot more sense for this?

Please enlighten me.. i'd like to know more about on-chain lending
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Offline Akado

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Re: Lending DApp
« Reply #4 on: May 03, 2015, 03:30:49 PM »
How is lending supposed to work if it is backed by a highly volatile token i.e. loancoin?

I dont yet underatand the whole lending on the blockchain concept but wouldnt bitUSD make alot more sense for this?

Please enlighten me.. i'd like to know more about on-chain lending

I agree with you, it's not that I defend their whitepaper, I just felt it was a good share and things like these are always worth a read.

I guess that by lending their coins, it would only matter the amount of coins lent and not the $ worth of it.

However for mass adoption, our bitAssets are definetely ideal.
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Offline Akado

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Re: Lending DApp
« Reply #5 on: May 17, 2015, 02:58:32 PM »
been brainstorming, what if

Bob has 100 bitUSD on his account. He wants to take a loan of 50bit USD from Alice.

Alice makes a loan to Bob, 50bitUSD.
They must share a multi-signature (secondary) account.
This (secondary) account holds Bob's collateral.
Date X is agreed upon. Funds must be paid back by this date.
Collateral from the secondary account can't be moved until the loan is paid back to an Alice's main account.
Once funds are paid back to Alice's main account, collateral is automatically unlocked and sent back to Bob's main account.
If funds are not paid back, until date X, collateral is automatically unlocked and sent to Alice's main account

Problem: We go back to the initial stage, Bob has his collateral locked to ensure he pays back to Alice. However, if the collateral is the equivalent to 50bitUSD, he still only has 100bitUSD, which he already had in the beggining. Meaning this would be useless unless the value of the collateral is inferior to bitUSD. However this puts Alice in a risk situation.

So, we either find a way to make it safe for Alice to issue a loan (Solution A) or we find a way to punish Bob for not paying the loan back (Solution B).

For Solution B, we would need a reputation system. It can be target of Sybil attacks but I guess we can work around that and avoid it.

But for Solution A I don't have any ideas. Anyone would like to discuss this?
 
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Offline toast

Re: Lending DApp
« Reply #6 on: May 17, 2015, 06:22:38 PM »
This is pretty much the same mechanism as bitUSD. The rule for granting a loan is that you have sufficient collateral. Shorts are loans (bitUSD is loancoin) and the capital pool is any crypto-asset you can control (in bitshares' case, BTS or later private collateral).
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline starspirit

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Re: Lending DApp
« Reply #7 on: May 17, 2015, 10:28:45 PM »
This is pretty much the same mechanism as bitUSD. The rule for granting a loan is that you have sufficient collateral. Shorts are loans (bitUSD is loancoin) and the capital pool is any crypto-asset you can control (in bitshares' case, BTS or later private collateral).
I just raised this yesterday, bitUSD can really be used for general purpose loans. Perhaps this is they key target market rather than BTS bulls:
https://bitsharestalk.org/index.php/topic,16379.msg209415.html#msg209415

Combine this with flexible collateral, and anybody can get a general purpose loan collateralised against any on-chain tokens they wish:
https://bitsharestalk.org/index.php/topic,16326.msg208798.html#msg208798

Combine this with the ability to create on-chain tokens backed by off-chain assets, such as here:
https://bitsharestalk.org/index.php/topic,15957.0.html

and then we have the ability to offer general purpose loans backed by any form of digital collateral.

BitShares needs to make a psychological jump from the status quo experimental mindset to one of imminent opportunity, that self-funds its longer term vision through profit. That's where I'd like to see the mindset move.

 

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