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For a few real world examples that may be easier to grok: - https://goldfinch.finance https://goldfinch.finance - https://www.maple.finance https://www.maple.

For a few real world examples that may be easier to grok: - https://goldfinch.finance https://goldfinch.finance - https://www.maple.finance https://www.maple.finance - https://truefi.io https://truefi.io - https://makerdao.com/en/ https://makerdao.com/en/ (there is a growing "real-world asset"-collateralized pool as well) - https://centrifuge.io https://centrifuge.io These all offer rates competitive or superior to traditional methods thanks to being able to access a global pool of capital through a single programming interface that simplifies coordination and risk sharing between counter-parties. And another early example Valora (on the Celo network) where you can make global transfers of money with a Venmo-like experience for fees <$0.01.

paradite 4y ago
> These all offer rates competitive or superior to traditional methods thanks to being able to access a global pool of capital through a single programming interface that simplifies coordination and risk sharing between counter-parties. (Genuinely curious about the answer) How would that be different from, or better than centralized platforms like kickstarter?
lottin 4y ago
None of these explain how unsecured lending works. Goldfinch says that "borrowers are required to pledge real-world assets as collateral" and in the event of default the pledged collateral is liquidated. [1] So that's not unsecured lending. Truefi says that they only lend to institutional borrowers who sign an enforceable lending agreement. [2] So that's a traditional lending agreement that is enforced by courts of justice. Maple also says they only lend to institutional and corporate borrowers [3]. In conclusion, none of these are real world examples of "borrowing and lending to other parties without the parties having to trust each other or having to wait for a slow and expensive legal system to work it out". > These all offer rates competitive or superior to traditional methods Also what do you mean by competitive rates? Note that if the borrower is getting paid interest at a rate above the market rate, the borrower is getting paid a competitive rate, but the lender is paying an uncompetitive rate. [1] https://docs.goldfinch.finance/goldfinch/general-faq https://docs.goldfinch.finance/goldfinch/general-faq [2] https://blog.trusttoken.com/introducing-truefi-the-defi-protocol-for-uncollateralized-lending-9bfd6594a48 https://blog.trusttoken.com/introducing-truefi-the-defi-prot... [3] https://maplefinance.gitbook.io/maple/protocol/borrowers https://maplefinance.gitbook.io/maple/protocol/borrowers
1983054104 4y ago
I still don't understand how this could change my life. Most people exchange money through their bank accounts for free with things like the SEPA network. I browsed through all those web sites and all I see is ways of using the crypto wallets that have to be previously created through various means incompatible with each other. Let's not talk about the "be your own bank" motto which means that you have to secure your own money which is, at least scary for most people, and at most very difficult to do even for people knowledgeable with computers. Here is something that is revolutionary and actually happened in the past 10 years: *online banks* that have no bricks-and-mortar offices! I created an account in less than 10 minutes, I have a debit card that I can use all over the world, I literally cannot spend more than what I have, and it's still a real bank which means that my account is insured if something bad ever happens. Where is the crypto equivalent?

paradite 4y ago

> These all offer rates competitive or superior to traditional methods thanks to being able to access a global pool of capital through a single programming interface that simplifies coordination and risk sharing between counter-parties. (Genuinely curious about the answer) How would that be different from, or better than centralized platforms like kickstarter?

lottin 4y ago

None of these explain how unsecured lending works. Goldfinch says that "borrowers are required to pledge real-world assets as collateral" and in the event of default the pledged collateral is liquidated. [1] So that's not unsecured lending. Truefi says that they only lend to institutional borrowers who sign an enforceable lending agreement. [2] So that's a traditional lending agreement that is enforced by courts of justice. Maple also says they only lend to institutional and corporate borrowers [3]. In conclusion, none of these are real world examples of "borrowing and lending to other parties without the parties having to trust each other or having to wait for a slow and expensive legal system to work it out". > These all offer rates competitive or superior to traditional methods Also what do you mean by competitive rates? Note that if the borrower is getting paid interest at a rate above the market rate, the borrower is getting paid a competitive rate, but the lender is paying an uncompetitive rate. [1] https://docs.goldfinch.finance/goldfinch/general-faq https://docs.goldfinch.finance/goldfinch/general-faq [2] https://blog.trusttoken.com/introducing-truefi-the-defi-protocol-for-uncollateralized-lending-9bfd6594a48 https://blog.trusttoken.com/introducing-truefi-the-defi-prot... [3] https://maplefinance.gitbook.io/maple/protocol/borrowers https://maplefinance.gitbook.io/maple/protocol/borrowers

1983054104 4y ago

I still don't understand how this could change my life. Most people exchange money through their bank accounts for free with things like the SEPA network. I browsed through all those web sites and all I see is ways of using the crypto wallets that have to be previously created through various means incompatible with each other. Let's not talk about the "be your own bank" motto which means that you have to secure your own money which is, at least scary for most people, and at most very difficult to do even for people knowledgeable with computers. Here is something that is revolutionary and actually happened in the past 10 years: *online banks* that have no bricks-and-mortar offices! I created an account in less than 10 minutes, I have a debit card that I can use all over the world, I literally cannot spend more than what I have, and it's still a real bank which means that my account is insured if something bad ever happens. Where is the crypto equivalent?