Lend at Hodl Hodl: True P2P Bitcoin lending is here - page 2.

Charles-Tim

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In my opinion, I like this concept, if someone wants to borrow funds (probably, coins other than bitcoin) a contract is created in which escrow will be generated, the borrower will deposit bitcoin as a collateral in the eswrow directly from his wallet, after that, the loan will be transferred by the person that wants to lend the person that wants to borrow and in accordance to the contract. So, if the borrower repay the fund, the bitcoin in escrow will be released and the borrower will take back his/bitcoin.

But, one question comes to my mind. So far no kyc is required, and not custodial, this is a good approach, but that means only bitcoin in escrow will the borrower be able to borrow in other currecy? Or will the borrower be able to borrow more than the bitcoin in escrow? And also, I will like it if we can discuss the monthly percentage gain of the lender. So, to know if the service will be good.

Borrowing stable coin is the best for this approach, like if some noticed there will be gain or increase in price of bitcoin, borrowing stable coin at such point is best.

Quote from: BIT-BENDER on October 23, 2020, 01:28:32 PM

Although it would have been exciting if the non-fait property be left to the decision of user, like it should be you can choose fiat or no non-fiat, except that it's an exciting service.

Lending and borrowing fiat will not be appropriate because it will compromise privacy. Although, it would have been a lot easier if fiat can be borrowed.

BIT-BENDER

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Many Bitcoin -hodler- has avoided or left un-used, services like this on accounts of Privacy,security,anonymous and many other, the developers of this has taking that extra yard with those features it has, this is unadulterated decentralization.
Although it would have been exciting if the non-fait property be left to the decision of user, like it should be you can choose fiat or no non-fiat, except that it's an exciting service.

dothebeats

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It truly envisions a true P2P platform, although I still have doubts on its viability since it's not common for people in this day and age to ask for loans and put btc as collateral, given that most people back then ask btc and give other altcoins as collateral in order to just dispose their coins that they cannot sell in the market. It's good that the platform is already out, though I don't think it will be utilized fully considering that most are just eyeing on DeFi loans anyway and are getting what they truly wanted, plus the fact that it has been around relatively longer and performs relatively well given the minimum collateral amount that safeguards lenders from wild rides on fluctuations should the borrower decides to default.

Ucy

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I wonder if the site is decentralized. I would prefer to do this on decentralized platforms so we don't experience as situation where a site gain too many users and eventually require the unsafe/risky kyc model due to pressure from typical regulators. I like the non-custodial approach though.

Coyster

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Quote from: Ayiranorea on October 23, 2020, 07:11:31 AM

Now or then the user is supposed to provide collateral to get fund.

After reading the article, it's clear that the collateral is going to be paid/provided in btc and not through any other means. See excerpt:

Quote from: Ayiranorea on October 23, 2020, 07:11:31 AM

User can't hide his identity, is there anything specifically mentioned as the collateral for lending.

As has been said already, the collateral is in btc and as for users identity, it looks like it's going to be protected/remain private, see excerpt:

Quote

Zero-KYC. You only share your crypto addresses with your counterparty. No banking details, no locations, nothing.

With the info mentioned in the excerpt above, none of it actually reveals a lender or borrowers identity to the other party

That being said, it looks a good development for Bitcoin and it should be convenient for users who will try it out. I believe people will use this service, and I like it (plus it's good for adoption) when Bitcoin provides services that only fiat and few other assets have provided for quite a long time now.

Ayiranorea

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Non custodial means the user himself is responsible for the funds. There is no KYC, how this gonna be effective on lending. I'm not that good with the lending process. Now or then the user is supposed to provide collateral to get fund. User can't hide his identity, is there anything specifically mentioned as the collateral for lending.

fillippone

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Hodl Hodl, the most famous Bitcoin Based DeX's exchange, has announced a new lending and borrowing service via a Medium Post:

Lend at Hodl Hodl: True P2P Bitcoin lending is here

Quote

For the last couple of months, the Hodl Hodl team has been silent, and there was a good reason for this. Since the beginning of 2020, we have been preparing something revolutionary that we believe can add huge value to Bitcoin’s ecosystem. We have been researching — both DeFi and Bitcoin’s lending space — for quite some time, and in spring of 2020, we decided that we can combine the best of these two sectors, and create a unique product — a non-custodial Bitcoin-backed P2P lending platform. So over these last few months, we have been devoted to developing lend.hodlhodl.com — a new way to lend and borrow globally without KYC.

Discover more here:
https://lend.hodlhodl.com/

This is very interesting as it is completely NO KYC^[1] - NO CUSTODIAL - NO FIAT, and, I might add, BITCOIN focused:

Quote

Property one: Non-custodial. Being non-custodial is a core element for every decentralized project out there. In most cases — not only — does this approach ensure a higher level of security, but it also allows your customers to be in control of their own funds. Your keys, your coins.
Property two: Non-KYC. Property one usually leads to property two. KYC creates unneeded friction and barriers to entry, and storing your private data with a third-party is not very decentralized.
Property three: Non-fiat. Yes, you read it right. Not having fiat, with all the fiat gatekeepers out there, helps you to create a proper P2P platform. If you look at the most successful DeFi projects you will understand that they are operating without fiat involvement. Instead, fiat is replaced with stablecoins. Such an approach allows you to move the payment part into a real P2P spectrum because stablecoin payments, just like Bitcoin payments, are happening with no middleman involved. Fiat payment institutions can block, reverse, and freeze operations between peers. Removing that type of risk makes your solution more censorship resistant.

This is one of the most interesting De-Fi application, especially for Bitcoin Hodler.

Base use case is Bitcoin Hodler in need of some liquidity.
Instead of selling some precious sats, just borrow some Stablecoin via BTC collateral.
Do your stuff, finance your projects or whatever it might be the case, then give back the borrow and get back your bitcoin.
In case of a "PlanB" scenario this is an effective way to use your bitcoin to access some liquidity without incurring in losses in case of a bull run.

This is the first scenario It came into my mind, but it would be interesting to share some ideas.
Maybe some fiscal arbitrage are possible in case of a possible cash-out

[1] YES, KYC at Hodl Hodl never happened. Hodl Hodl introduces KYC/AML procedures as a sign of solidarity was an April fool

Topic: Lend at Hodl Hodl: True P2P Bitcoin lending is here - page 2. (Read 384 times)