Topic: Decentralized Crypto Lending for Interest (Read 148 times)

Ha, that one looks interesting. This is what it says in their FAQ

"What happens when a borrower does not pay back the loan?
If a borrower fails to pay back the loan completely, the loan turns into a default. In this case the Lendoit Smart Compensation Fund immediately deposits a fraction of the loan to the lender in order to minimize his loss. Since the borrower is known and legally bound to the smart contract, the lender has the choice of collecting the debt himself or simply selling the default on the Collectors Market to further minimize his loss.

*The ability to engage in syndicated loans protects the lender as well"



How can Lendoit protect its Lenders?
Lending is a risky business, however Lendoit makes sure to address the lender’s risk:

First: every borrower is scored through a professional scoring/verification processes by third party companies in the borrower’s country (before their loan application is published)
Second: the lender is protected through a Smart Compensation Fund where a percentage of every loan is stored in order to compensate for the defaulted ones.
Third: in case of default the debt can be sold in a collector’s market (default market) - the lender can sell the debt to professional collectors in each country (similar to the way it works in the traditional markets)
Four: The ability to engage in syndicated loans protects the lender as well.

By combining the four Lendoit mitigates the chances that lenders are affected by the risks of lending.

after the bitconnect scam I would not believe in any kind of lending progarme for btc as well as other coins but in this regard I like the masternodes system where you hold your coins and get % each month as a reward.

Are you looking for something like this : https://lendoit.com/
Now I don't know how legit this is, do your own due diligence and then do anything stupid or smart. There are a couple more sites too. Just Google what you have asked.

Basic principle of lending (money) is that the one who borrows money needs to provide collateral to the one who lends money. I can't really imagine that in a decentralized way. You need some kind of authority which will take the collateral from borrower (with force if needed) and give it to lender.

Before this will happen i think it will be very hard to implement it there will be lots of requirements needed since it's a decentralized technology and i for me i will not go for it if will just hold my coin especially now that it's price goes up and down and wait for the price to soar high.

I still would not use that platform even if decentralized because lending in a decentralized way might have many flaws and loopholes that might end up in not getting interest from my coins at all. IMO, lending should still be done the way it is now. It does not need improvements from decentralization because I see many advantages of decentralized lending(since no one in authority can take action whenever someone didn't pay a loan from it).

Well, in this industry, trust can really be so hard to gain and also hard to give since you cannot see the person you are lending your money too. I for sure wouldn't do it even with a reliable escrow. I would rather go and study trading more if I want more profits rather than get in on this type of investment.

No, not yet. And even if there will be one there will still be doubts in those who will invest their money for lending purposes.
I'd rather do a fiat to fiat lending than risking it here.

If you go to the lending section here, you will see a lot of requirements just so they could give you that specific amount and it is not always a success. That is one good example already of how lenders needs to be 100 percent sure to where they will provide the coin.
ICO's like this one tend to be buried in just a manner of time. I do think that is one of the reason.

Good point. I was just hoping that there was an innovative technology like Blockchain where people can lend and loan on a trustworthy environment where it can not be hacked or misused.

I assume it will happen soon though...

People are just not ready to risk on anything lending of coin after the collapse of some coins running lending program, this is why I think they hold. Particularly for me, I wouldn't want to deal with anything of such. I rather hodl and be hopeful for an increase.

So many people just HODL their coins and not make any interest on it. Because they can`t just trust a third party to loan out their coins for interest.

So I was wondering if there has been any solution to this problem yet.

Can I lend my coins, in a decentralized, trustworthy and reliable platform where one person takes a loan on my coins and pays me interest?

Something like Bitbond but decentralized and more trustworthy