Self-paying loan

Bitocracy SIP | Sovryn Improvement Proposals
1

This is a stupid idea, which is why we have to do it. It is about an automated loan and repayment system. It’s probably risk-based, but it depends on how you solve it.

The design may be silly, but that’s for users to judge.

Hypothetical use:
I want to buy a laptop. The easiest option is to sell some cryptocurrencies and buy it, but I can also use a “Self-paying loan” system.

  • I need to have a lot of cryptocurrency. For example, $10k [USDT] (of course this is a made up value). I want to buy a laptop for $3k [USDT].
  • So I order the “Self-paying loan” system to deposit $10k in lending and borrow $3k in borrowing.
  • (OPTIONAL?) I set the minimum interest rate that USDT can achieve from the lending, otherwise part/all of it is sold and covers the borrowing
  • I receive the funds in my account.

And what happens:

  • The interest rate from lending pays off the loan.
  • Sovryn grows better (:P)
  • We have a laptop
  • If we’re lucky, the earnings from lending will exceed the value of the laptop and eventually we “got it for free”.

Isn’t it better to do …

Maybe I’m handicapped. But I am keen to know what you think.

2 Likes
2

Not a novel concept multiple protocols like this such as alchemix exist on ethereum. A concept like this would not work at the current stage of the rsk network as there are not enough yield opportunities.

1 Like
3

Yes, this is exactly like Alchemix. A great idea for Sovryn to implement. This could be a killer feature for SOV, especially if it the UX is tight. Thank you for suggesting this. I’d like to see this added as a SIP.

4

I am glad you like the idea. “My” version has a few changes, as I didn’t know there was such a thing as Alchemix. My version seems better to me, but those are minor differences (in Alchemix you borrow resources from yourself, whereas in Fervi’s SPL you borrow from other users).

But the concept I would like to see :stuck_out_tongue: