Bitcoin Cash DeFi Idea

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Written by

crypto media and think-tank

3 years ago

In community: Read.Cash(f4d8)

Topics: Economics, Cryptocurrencies, Finance, Blockchain, BTC, ...

After studying DeFi and different projects around it, I see one of the problems (and maybe both opportunities niche). It's relatively easy to stake tokens and earn additional income, there is also a possibility to borrow. But in order to borrow, you need to stake your crypto (and usually at least 150% of what you need to borrow). And what about the people who don't have any crypto? Why then to speak a lot of pathetic words of how DeFi will help the unbanked, etc. when many of such people don't have crypto at all. And if they have, it's easier for them just to sell it for fiat, and then when they need cash again - sell again, without going into borrowing stablecoins.

It seems to me, that this is one of the biggest obstacles for the DeFi growth. Ok, so how to borrow without staking crypto? There should be some collateral, otherwise it will look like an airdrop.

So that's where Bitcoin Cash DeFi idea came to me. There is Read.Cash web-site where people earn money by publishing articles, reading, and commenting. So the basic idea is that your Read.Cash profile can become your collateral.

So the idea is that you can get some cash (Bitcoin cash, and it's the currency used on the site) instantly, using your Read.Cash profile as collateral.

There could be some mechanism to calculate your maximum number of BCH which you can borrow, and there might be a mechanism that can direct your future profits into paying this loan.

On the top of the site, there is "Pledge" button where people can support the Read.Cash fund, so there might be another button where people can support "Bitcoin Cah DeFi" or "Read.Cash DeFi". Even on the platform itself, every day $500 are distributed by Random upvoter and @MarcDeMesel upvoted several posts with thousands of dollars with of BCH.

Many people don't sell their earned BCH so they can be lenders, and some people who need instant cash can be borrowers.

In a way, this model will have advantages comparing to Ethereum DeFi projects, such as fast transactions and small transaction fees.

Is this something interesting? Will there be demand for such services? I live these questions to you, let me know your opinion.

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Written by

cryptotexty

crypto media and think-tank

3 years ago

In community: Read.Cash(f4d8)

Topics: Economics, Cryptocurrencies, Finance, Blockchain, BTC, ...

Comments

So if I understand you well. You want people to be able to borrow against just their read.cash profile which can be discarded and a new created at random?

What monetary value do you think a read.cash account have to qualify as collateral for a loan?

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CryptoSorted

3 years ago

Good questions. Newly created profiles are not equal to already existing ones, which already have content, followers, etc. Well, I see you are only 2 weeks here but you are doing well with your articles ,but that's because your content is interesting. Spammers are not getting such results

If the loan is not paid, profile won't be discarded, but the income from upvote will go to the fund, to compensate the expenses.

Monetary value is different for each profile, but we can count something like, if a person earns $1/day we can assume that in a year it will be +- $365, as RandomUpvoter will continue (unless there will be some changes) and Read.cash fund is enough to continue for few years. So let's say for such profile, I think it would be ok to borrow $200-300

Of course that's only idea, and I'm thankful for your feedback

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cryptotexty

3 years ago

I like your reasoning. But it will be difficult to implement because:

Reward system can change
There's no guarantee the bot will tip the articles of the borrower with sufficient amount to convert the full amount of the loan should they refuse to pay or abandoned their account permanently.
There's no way to hold the borrower accountable if the above happens and as a result lenders will not be confident in the system enough to lend out their money.

What makes lending attractive is first, the security and near-absolute guarantee of no loss and returns.

It's a fun idea to think about though.

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CryptoSorted

3 years ago

On all 3 points, there might be a short answer - there is always a risk. There are already centralized apps and services from Binance, CryptoCom, Celsius There are cryptocurrencies which you can stake BCH you can keep on Celsius and get around 5% APR

But here there are people who support ReadCash as the project, so theoretically they can support lending, and ReadCash might be a platform providing it. This activity can bring more users both for ReadCash and BCH

All the risks you mentioned can be measured, and for example, there might be a manual system of approval for loans.

Just sharing some ideas and thoughts. Anyway I don't have neither capital nor technical skills to implement it at the moment.

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cryptotexty

3 years ago

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