Maybe PoS will accept crypto kitties
Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats
11–20 of 58 posts
Re: Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats
#12Hey HN! We're the team behind Dharma protocol, building the infrastructure for the tokenized debt agreements on the Ethereum blockchain. In this code school, we teach you how to build a loan collateralized by a CryptoKitty. We hope you enjoy! If you're interested in learning more visit us at dharma.io or join our chat.
This is a clever idea. I've long been skeptical of debt on blockchains b/c there aren't good means of enforcing repayment without resorting to trusted irl/off-chain components, and then why bother doing it on chain in the first place. But collateralizing with digital assets created on-chain is a really interesting approach, obvious in hindsight, but perhaps requiring the prerequisite of real implementation of unique…
Couldn't you just collateralize with blockchain tokens themselves? Why do you need on-chain "unique collectible digital assets that retain value"?
Re: Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats
#13I have looking deeply into lending smart contract protocols - dharma, ethlend, salt, paypie, etc. My biggest complaint is all of them are so-called 'blockchain' products but not only can they be done better without blockchain, but that despite their product being all about decentralization, none of these projects are decentralised!
Re: Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats
#14Earlier quoted context omitted.
This is a clever idea. I've long been skeptical of debt on blockchains b/c there aren't good means of enforcing repayment without resorting to trusted irl/off-chain components, and then why bother doing it on chain in the first place. But collateralizing with digital assets created on-chain is a really interesting approach, obvious in hindsight, but perhaps requiring the prerequisite of real implementation of unique…
Couldn't you just collateralize with blockchain tokens themselves? Why do you need on-chain "unique collectible digital assets that retain value"?
Probably because collateralizing with the thing your borrowing is kind of pointless, yeah?
Re: Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats
#15I have looking deeply into lending smart contract protocols - dharma, ethlend, salt, paypie, etc. My biggest complaint is all of them are so-called 'blockchain' products but not only can they be done better without blockchain, but that despite their product being all about decentralization, none of these projects are decentralised!
Every time blockchain has had a hype cycle over the years I start thinking of ideas to build on it. Then I realize all of my ideas would just be simpler, better, and more monetizable (minus Ponzi hype) if I just built them on traditional technologies.
Re: Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats
#16Earlier quoted context omitted.
Couldn't you just collateralize with blockchain tokens themselves? Why do you need on-chain "unique collectible digital assets that retain value"?
Probably because collateralizing with the thing your borrowing is kind of pointless, yeah?
I agree, but isn't the point of borrowing against collateral that you have some utility from the collateral (e.g. a car you drive, a house you live in, part of a business you own) while you carry the loan?
If these crypto "assets" like Kitties are rather unfungible for crypto "coins", then I suppose it would make sense, but then I'd be confused why the lender would accept the collateral.
Re: Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats
#17Earlier quoted context omitted.
Couldn't you just collateralize with blockchain tokens themselves? Why do you need on-chain "unique collectible digital assets that retain value"?
Probably because collateralizing with the thing your borrowing is kind of pointless, yeah?
Oh yeah. I guess I assumed the thing being borrowed was off-chain (dollars, e.g.). My mistake.
Re: Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats
#18Too bad nobody I their right mind would borrow or lend such an obscenely volatile and deflationary instrument (unless they were going to scam it somehow).
Re: Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats
#19Hey HN! We're the team behind Dharma protocol, building the infrastructure for the tokenized debt agreements on the Ethereum blockchain. In this code school, we teach you how to build a loan collateralized by a CryptoKitty. We hope you enjoy! If you're interested in learning more visit us at dharma.io or join our chat.
This is a clever idea. I've long been skeptical of debt on blockchains b/c there aren't good means of enforcing repayment without resorting to trusted irl/off-chain components, and then why bother doing it on chain in the first place. But collateralizing with digital assets created on-chain is a really interesting approach, obvious in hindsight, but perhaps requiring the prerequisite of real implementation of unique…
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 that we can collateralize not just collectibles, but any ERC20 token as well, which makes the protocol substantially more attractive.
Re: Show HN: Collateralized Debt Agreements Using Smart Contracts and Virtual Cats
#20I have looking deeply into lending smart contract protocols - dharma, ethlend, salt, paypie, etc. My biggest complaint is all of them are so-called 'blockchain' products but not only can they be done better without blockchain, but that despite their product being all about decentralization, none of these projects are decentralised!
I'm not really a fan of crypto landing platforms, but one thing many forget about cryptocurrencies is that they do have one intrinsic value = extreme liquidity.
How fast can you get lending users to put $100 million to a billion into your non-blockchain platform? Maybe 5 years, with VC money for marketing?
Now compare that with how fast you can do it with a blockchain crypto platform. And it's still very early days = "small" amounts of money being put into crypto compared to what it's going to be 5 years from now.