bpforster24

7 ms·

1.
by bpforster24 8y ago
Ha, you're right, sorry. We think we'll be able to sell value added services to our ecosystem (for example, consulting services, insurance, data feeds, etc.). We will also investigate token models to see if there is a way to make
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by bpforster24 8y ago
Even if you 100% collateralize, you can get 2x leverage. That leverage can be applied to all sorts of use-cases, but we think one of the main ones that will be common today is speculative margin trading (e.g., short selling)
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by bpforster24 8y ago
Censorship resistance is a big factor - since no one entity controls the Ethereum blockchain or smart contracts that have been deployed to Ethereum, there is no way to shut down the service. This paves the way to a single global capital mar
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by bpforster24 8y ago
Are you using a web3 browser? Chrome+metamask, cipher, toshi, brave, etc.
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by bpforster24 8y ago
We discuss our business model a bit in this blog post: https://blog.dharma.io/dharma-isnt-currently-doing-a-token-s... Happy to discuss more, but that's a good start
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by bpforster24 8y ago
Dharma Protocol doesn't require that the value of collateral be greater than the principal of the loan, but we do expect the market will demand full- or over-collateralization.
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by bpforster24 8y ago
I'd recommend reading this blog post we put out. It explains better than I can in a short comment: https://blog.dharma.io/dharma-an-open-protocol-for-generic-t...
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by bpforster24 8y ago
Similar to the question about SALT and EthLend, these are both applications. See our answer there fore more details. Re. MakerDao, they offer one type of loan, the Collateralized Debt Position, in which a borrower collateralizes ETH and the
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by bpforster24 8y ago
Right now we expect most loans will be fully collateralized by other crypto-assets. So the default deterrence would be that if you don't pay back your loan, you lose your collateral. We also support unsecured loans (i.e., loans that ar
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by bpforster24 8y ago
EthLend and SALT are both lending applications. While we have created a lightweight lending app in Dharma Plex, our core offering is Dharma Protocol. Dharma Protocol is a suite of developer tools that enables entrepreneurs to create apps li
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by bpforster24 8y ago
One way or another, the borrower has to come up with the principal + interest or they will forfeit their collateral. So they will want to use the loan in some sort of income generating capacity: financing a project, speculative trading, etc
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by bpforster24 9y ago
Yeah that's essentially right. The only modification I'd make is in your last step, what'd you need to do is buy back the magic bean coins (because you owe them to someone else). So you you wouldn't "sell 0.5 eth
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by bpforster24 9y ago
I work at Dharma with Nadav and am happy to shed some light here. Your point is well-taken and definitely a risk. What lenders plan to do, for loans collateralized by crypto, is overcollateralize substantially. So, for instance, in order to
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by bpforster24 9y ago
I'm on the Dharma team with Nadav, and happy to shed some insight here. So we think a really interesting use case in the short term is margin lending of crypto assets. Say you have 10 ETH and want to short-sell a different ERC20 token.
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by bpforster24 9y ago
Your first point is well taken - without some sort of identity layer on the blockchain to create either social or reputational accountability, unsecured loans probably will not flourish. Regarding you second comment, what's cool is tha