Would Automatic Loan Website in style of a pawn shop work?

Snail2

legendary

Activity: 1512

Merit: 1000

Quote from: bitgamerz on March 29, 2016, 08:03:07 PM

so, basically you want to give away LTC & get BTC ?

you can use https://shapeshift.io/ (swap currencies)

As I see in OP it isn't about giving away anything. This is how the lending section here working. You deposit some alts (usually 120% of the loaned amount) at an escrow as collateral, you get your BTC and when you paid back your loan (+ interest) then you will get back your alts. In this case the lending site would act as lender and escrow in one. It will turn to an exchange only if you default on your loan

.

To OP: I think this could work, but you would need quite strong security and just a set of well established altcoins as collateral to avoid issues like that what killed Cryptsy.

bitgamerz

newbie

Activity: 51

Merit: 0

so, basically you want to give away LTC & get BTC ?

you can use https://shapeshift.io/ (swap currencies)

jtipt

hero member

Activity: 1050

Merit: 529

Seems like a good idea, and would hurt it's basic principle seems like a pawn shop( I know you mentioned in in the topic). This would actually work unless you decide to scam lol and ofcourse of the intrest rate is low. I wouldn't mind trying this.

SFR10

legendary

Activity: 2968

Merit: 3406

Crypto Swap Exchange

In regards to this, ever working, the answer is yes but the problem is the whole process plus the operation should be done/handle by a well trusted person within the community since security concern will surely rise for this type of website, even though it will be purely an automated one. Maybe using well known developers would be the ideal thing to do as well. Honestly though, from what I see, people would prefer forum loans much more since they could evaluate the person their dealing with and lower the risk of losing money in the process.

European Central Bank

legendary

Activity: 1288

Merit: 1087

I don't see why not. I still can't understand why people leave an alt as collateral for a loan when they could just sell them and not have to dick around. Guess I'm missing something.

cruguy

member

Activity: 98

Merit: 10

That's how people are working here in loans section.

Nothing new in that.

But if you created automated website, the security should be very tight and also it is not much profitable unless they have big backup of investors to give currencies as loan.

maku

legendary

Activity: 1288

Merit: 1000

It is not exactly a loan if you give exact amount as your collateral, is it? It is more like exchange service with additional fee.
I have no idea how this could realistically work.

Bitshire Hashaway

member

Activity: 70

Merit: 10

Let's say 120$ worth of litecoin but you do not want to sell it.

You also need 100$ worth of bitcoin.

You go to a website , give your 120$ worth of litecoin , they give you dozen of payment options (quick payback , 3 month payback , 527 year payback etc.) and you select one , in return of your 120$ litecoin they give you 100$ loan. For this time lets assume you have to payback 105$ in a month. You pay them back 105$ in bitcoin in a month or shorter period of time, they give you your 120$ litecoin back.

There is no need for confirmation or anything , you pay 120$ in any altcoin anyway , so there is no need to wait for the loan. Website will be automatic and as soon as you pay the Xcoin and get paid in Ycoin , simple as that , seconds only , website is doing all of this automatically. Doesn't care if you will pay the loan back or not , as long as it cares , if you don't pay , it will sell your collateral.

Very simple idea , everything is easy and simple to execute.

Would this idea work?

Topic: Would Automatic Loan Website in style of a pawn shop work? (Read 853 times)