Buy crypto anonymously on the Incognito pDEX   

Leveraging incognito infrastructure via financing.

#1

Hi,

I have ties to numerous communities that need financing on land, vehicles, semi trucks, equipment for businesses, capital expenditures, working capital, etc. Is there a way to start a decentralized financial institution that will allow individuals to borrow at rates that are competitive with traditional financing institutions? Provide those with earning ability to leverage their money and assets in a way not readily available to them?

Utilize collateral that they may have in the real world, such as land, vehicles, etc.

Build a profile that allows folks to know they are credit worthy without divulging their identity if they so choose?

feedback on where to start or look out when establishing such a service.

Maybe an fdex of sorts that models the pdex in terms of liquidity pools but allows for borrowing instead of just providing liquidity.

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#2

What Constant is doing kind of follows your suggested scenario. They use crypto collateral, not sure how to easily tie things to real world assets.

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#3

I can document worth of collateral in real world terms. How to start a currency that instantly has value? Provide returns as prv does in terms of liquidity but also loan it out to provide returns.

Constant leverages the incognito platform according to their website when I loaned a specific coin on that platform.

#4

There is a lot of work to be done in this space and a lot are gong to see this as more risky, not less risky. It’s really hard to compete with traditional rates banks can offer because 1) much larger pools of money are comfortable with the frame of the traditional world and 2) fractional reserve banking allows banks to lend out much more money than they actually have on deposit.

In 2020 the focus seems to be on yield farming where 10% APY is not compelling. In the western fiat world, that’s a very high interest rate.

So you probably have to start in parts of the world where charging 10%+ APR on loans is not unusual. But some of that, depending on which county your from, will be a lot harder to do if you don’t understand the local culture, laws for enforcement of non-payment, not a local, etc.

You also fall to regulation that you would be an originator of loans. It can never be fully decentralized because who is actually going to be able to repossess the land, vehicle, semi truck, if the borrower doesn’t pay?

…
Not to change topics, but something far better is if someone had ties into the wall street world and could convince them that crypto is the ultimate collatural because it is instantly liquid and can be programmatically sold in pieces (you don’t have to liquidate the entire position).

SALT Lending tried this—it was a terrible execution. Big money is investing hungry to invest a stable 2-4% APY. There’s no reason why using BTC, ETH, and big market cap coins needs to garner 8-15% APR when borrowing. That’s insane.

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#5

The Constant - Incognito scenario is different in that all value involved is digitally available, claimable, repossessable, refundable and so on, and locked in a blockchain.

Apart from the laws and regulations you will have to apply to, there is an issue of how to preserve ownership of the asset while the loan is in progress. Can you prevent people from selling land they used as collateral for the loan? What happens when they don’t pay back? Who is going to supply the initial capital?

Maybe if you share more details, community members will be able to brainstorm more and who knows where that leads to.

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