Bitshares LND - P2P Lending - Social Contract & Business Model

[thisisausername]

Is anything still happening with this specific lending DAC implementation?  It's been quite a while without news.

[pc]

LND is not an asset in the sense of bitUSD on the BTS-X blockchain.

LND will be a separate (new) blockchain. In the genesis block of that new blockchain, 4 million shares will be created. These shares will be distributed as described, i. e. 1 million each to holders of PTS and AGS relative to their wallet balance on a given snapshot date.

How the "40% Market" will be distributed is not clear to me, and "10% Dev" seems like a lot. Maybe that's explained somewhere else in this thread (or subforum).

[FuLl]

The Social Contract:

Total of 4,000,000 LND shares distributed as follows:

25% PTS

25% AGS

40% Market

10% Dev

What does it mean when you say that these percentages are going to AGS & PTS?

If I issue an asset, would it increase value if I were to do the same distribution split? How would I send 25% to AGS & PTS?

I started a thread elsewhere to try to find out how to do a distribution of assets, but the only person responding is ridiculing me for the question being too stupid.

Would someone kindly explain this to me please?

[CLains]

Sounds good! I'm sure you can make it work.

Jump into it and build it in the air! :)

More like chasing BitX down the runway...

Lol!

[oldman]

Sounds good! I'm sure you can make it work.

Jump into it and build it in the air! :)

More like chasing BitX down the runway...

[oldman]

So you don't really need an escrow, because if you default on your loan it will damage your reputation in the community.

What is to prevent someone from building up a lot of trust over the course of years, and then, just stealing lots of money?  I suppose the amounts could never be high enough to make scheme worthwhile?

Nothing; this type of fraud is endemic among immature P2P lending communities.

There are mature P2P lending communities that manage reputation fraud through identity verification, self-insuring and loan structuring: Lending Club, Lending Tree, Zopa etc.

Crypto P2P is trying to emulate the fiat P2P systems with mixed success: BTCJam, BitBond, BitLendingClub (ha!).

P2P lending requires both escrow and reputation to function efficiently.

[oldman]

How does this compare to Ripple for extending credit?

If DAC = Gateway and LND = XRP there are structural similarities.

The Ripple protocol is slick (too slick?) and may be helpful in designing the DAC back-end.

Will be given due consideration.

[CLains]

Sounds good! I'm sure you can make it work.

Jump into it and build it in the air! :)

[etherbroker]

So you don't really need an escrow, because if you default on your loan it will damage your reputation in the community.

What is to prevent someone from building up a lot of trust over the course of years, and then, just stealing lots of money?  I suppose the amounts could never be high enough to make scheme worthwhile?

[bytemaster]

How does this compare to Ripple for extending credit?

[oldman]

On loan notes:

P2P loans will not be made fungible and ownership of the loan will remain with the original lender until discharged.

The Lending DAC will be a lean platform:

1. Credit scoring

2. Loan discovery

3. Collateral transfer

Pure P2P lending, no additives.

[oldman]

Just my opinion, but this seems a bit messy.  Wouldn't it be easier and eliminate the rounding issues to just do a doubling bitshift on all balances on any new block in which the total supply would otherwise drop below a minimum?

The monthly reset is neither elegant nor efficient.

However, regular 'deposits' to shareholder accounts provides a familiar mechanism for value distribution.

An investment that produces dependable monthly income is highly desirable to investors.

In short, messy but intentionally so.

[oldman]

So is this a way to borrow USD with BitUSD as collateral?   

The DAC could enable BitAssets to act as collateral for the lending of RealAssets.

Conveyance of the RealAsset would be a problem:

I loan you USD -> you put bitUSD up as collateral -> I wire you the USD -> You say USD not received -> ?

Without a trustless conveyance mechanism for RealAssets this feature would require a third party or escrow service.

Perhaps this would be feasible once an Escrow DAC is available?

[Troglodactyl]

Great! Looking forward to seeing this progress.

Shareholders will receive dividends in LND on the first of every month; the total number of shares will reset to 4MM on the first of every month.

Just my opinion, but this seems a bit messy.  Wouldn't it be easier and eliminate the rounding issues to just do a doubling bitshift on all balances on any new block in which the total supply would otherwise drop below a minimum?

[bytemaster]

We are going have a run at creating a P2P Lending DAC based on the Bitshares platform - let's call it Bitshares Lending for now.

I am a serial entrepreneur and crypto/fiat investor. We are building a team and have programming/coding gurus on-board.

We wish to solicit Community input on the proposed social contract and receive feedback on the business model:


The Social Contract:

Total of 4,000,000 LND shares distributed as follows:

25% PTS

25% AGS

40% Market

10% Dev


The Business Model:

Revenue will be generated per BTS; LND will be destroyed continuously as transaction fees between borrower/lender.

100% of revenue will be paid to shareholders via monthly distributions.

The distribution mechanism will be a monthly split.

Shareholders will receive dividends in LND on the first of every month; the total number of shares will reset to 4MM on the first of every month.

Loans can be secured with any bitAsset.

No minimum collateral requirements/LTV ratios; completely free market lending.

Credit rating and reputation will be tied to Keyhotee ID.


This is the simplest and most robust model I can contrive - no middlemen/loan officers/arbitrators/ID verification etc.

Input from the Community on any aspect of our proposal is both welcome and wanted. Please, give us your opinion!

Also, any advice from Invictus or other devs on nuts and bolts and how-tos of building a DAC would be greatly appreciated.

Not sure how we make this official, but this is where it starts.

So is this a way to borrow USD with BitUSD as collateral?