Question Crypto collateral loan?

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Alex Braun

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Dec 8, 2023
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Has anyone had experience with such services?
Is it still an interesting business model to build from scratch today?
 
Alex Braun said:
Alex Braun said:
Has anyone had experience with such services?
Is it still an interesting business model to build from scratch today?
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Yes
I gess it depends on what your goal is:
* developing the backend - probably not, if you are asking this question here
* marketing the tech as a service - same answer as previous. But if you see a market of lenders / borrowers, this can be possible. The product is ready and the market is huge on both sides.
* becoming a lender / borrower - sure


cheers,

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W Fish said:
W Fish said:
I took a loan there not too long ago. Worked smoothly. The tech is solid IMO.
I think their plans were a bit ahead of real life, as usual but it is working. I know they are working on getting more lenders.
My observation is that the market is not very active but seems interest is slowly going down.

cheers,
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can you please share (at least some) parameters of the loan - length, interest rate, LTV, ...
how does installment plan work?
what was the process of locking the collateral?
 
I took for a year, relatively small amount, mostly to try it out.
The available periods at the moment are 1-12 months.
Interest range 14-22% (APR).
LTV 50-70%
Available amounts 20 - 500K
Everything is due at the end of the loan period, no installments.
But you CAN pay back any amount any time, no penalty for that and LTV goes down.
You are required to make additional payments if collateral value decreases.
No way of pulling collateral out before end if collateral value increases or partial payback. In case of full payback - yes, of course.

They generate a 3 of 4 multisig and you sign it and then just do the transfer. 1 key to lender, 1 borrower, 1 debifi and 1 independent holder that acts as moderator in case of need.

they announced it this summer:

another video, where it is explainde well:

If something else, just ask - happy to help. But you can make a user and check it out yourself...


cheers,

Last edited: Nov 8, 2024
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Expense invoices with cashback (in crypto). Crypto on/offramp with invoices. Crypto SOF solutions.
 
W Fish said:
W Fish said:
Could you please elaborate.
Where? How?

And why do you think it is safer?
On Debify you have your BTC and the keys.
Wrapping BTC is additional risk. From there on pretty much equal risks, isnt it?


cheers,
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I lost interest in debifi when I read of KYC requirements. At that point, better to go with binance or similar.
Also I don't like that multisig stuff.

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W Fish said:
W Fish said:
Could you please elaborate.
Where? How?

And why do you think it is safer?
On Debify you have your BTC and the keys.
Wrapping BTC is additional risk. From there on pretty much equal risks, isnt it?


cheers,
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AAVE operates through audited smart contracts, which have been reviewed by trusted crypto security firms and also has proven itself through time . And also you can audit the smart contracts yourself .
Debify, on the other hand, uses a private 3/4 multisig escrow solution where the lender, borrower, and escrow must each sign a transaction. While is very safe when implemented correctly , the system is proprietary, meaning you don't have access to the code or full transparency like you do with AAVE. And also it opens up paths for abuse https://debifi.com/dispute-rules . You are "blindly" trusting Debify that everything is implemented correctly and that they are neutral in dispute resolutions . For me, it creates unnecessary centralization, which contradicts the core principle of crypto for me decentralization.
 
aniglo22 said:
aniglo22 said:
AAVE operates through audited smart contracts, which have been reviewed by trusted crypto security firms and also has proven itself through time . And also you can audit the smart contracts yourself .
Debify, on the other hand, uses a private 3/4 multisig escrow solution where the lender, borrower, and escrow must each sign a transaction. While is very safe when implemented correctly , the system is proprietary, meaning you don't have access to the code or full transparency like you do with AAVE. And also it opens up paths for abuse https://debifi.com/dispute-rules . You are "blindly" trusting Debify that everything is implemented correctly and that they are neutral in dispute resolutions . For me, it creates unnecessary centralization, which contradicts the core principle of crypto for me decentralization.
Click to expand...
Click to expand...
The code is open source AFAIK.

cheers,

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Expense invoices with cashback (in crypto). Crypto on/offramp with invoices. Crypto SOF solutions.
 
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