New Product Idea - Auctioned Borrowing

Ideation & Discussion
1

Hi all,

I have got this product idea, which is actually a successful business model working mostly in Asian countries with roughly around 40 - 50 billion MC I mean as an offline business.

What is the idea:

We set a pool of 1000 usd (for example) and 10 people can join the pool where each month it gets auctioned to get the 1000 usd to the winner who quote the least amount. This is with intention they pay back the money in 10 installments and they would provide collateral for equal amount or even more to cover the price fluctuations.

Let’s say first month auction starts at 950 and finishes in 700. So 700 would be paid to the user who won the auction.

the beauty is all the other user doesn’t pay 100 usd as loan amount they pay 70 (reduced amount based on the auction amount) for the month.

Next month may be winner paid 725 and everyone pay 72.5 as monthly payment … you get the idea.

this logic gets executed each month … in the end everyone would have got the capital paid at some point depending on the auction amount and usually the last month who gets paid would get more of the chunk than they paid.

Here everyone wins

  • Who needs money upfront but can afford to pay back monthly can get the money
  • Who don’t know when they need money will pitch in the month they need
  • who knows they don’t need the money for net 10 months but as they get more than what they paid so they will participate,
  • who got some crypto happy to keep it as collatoral but also needs money against it as other purpose in the mean time
  • if they didn’t pay their monthly due then the amount will be deducted from their collatoral. (this is big area where in the physical world this is executed based on trusting someone)
  • Since we are already a lending platform against collatoral this fits very well
  • Once the full cycle finishes the collateral is released back to them …

We can run as many pools as per the demand for different amount and different timelines also can be exteneded for institutions as well…

Please let me know what do you think of this and happy to answer any questions

Thank you
Bluebullet

1 Like
2

not sure how this works with gambling regulations in US

3

Thank you for taking a look at it. I know I could have explained the idea in a much better way… Which part of the idea do you think might be considered under Gambling…

Because to me it works like a normal loan with interest … Instead of getting a loan with an agreed interest and paying them monthly … I am agreeing to get less capital but the maximum i would pay would still won’t exceed the pool value of 1000 usd (In fact it should be always less than this amount as that is what makes everyone to participate)…

4

@Luke is a crypto wizard. He’s the best person to ask if this can be done.

1 Like
5

This idea of a pool with a 1000 usd split by 10 people doesn’t sound appealing to me . There’s much work that still needs to be done that can push WELL to a to broader audience. I don’t like the fact the the pool involves such a small amount of users. Work should focus on a larger scope . Maybe in the future when adoption has grown I’d would not be against such a proposal .