I feel this is a topic to emphasize on over and over again. Where will the success of web3 lie? There will have to be so many covered grounds for it to speedily manifest. We have to admit, these old time players are not just going to fold ARMs and wash things flip off their grip. They have a long standing industry. When it comes to government approval, web2 settings have that hedge. They have been in the minds of people for a long time and have become more of a household name. How do you tell Mr, A ALL of a suddenly, something is popping somewhere else? Indeed you will have to present something far more superior.
The context of this article is centered on the banking sector and how web3 can push a green button through proper banking application and hedge in the coming years. I once discussed the challenges faced in the traditional banking industry by citizens. From the aspect of poor annual ROI to over tasking and so on. The area I want to touch more is the aspect of loans. I have been doing a little research concerning how these traditional systems fixed their interest rates and it has not in any way been encouraging.
source
A whooping 20% for a 30 days loan is high. This is where what you will be doing with the loan really matters. You are looking at pushing it into an industry that can print in extra 30 to 40% plus the investment capital. Anything less than this may seem a waste of an entire effort. Worst of all, how do you bail yourself when you collect such loans for food, health issues or perhaps to solve another pending loan. It can be that complicated.
This is where I am seeing a big opportunity opening up for web3 in general. It boils down to how serious web3 can take pooling systems. What are the needed strategies to put in place and find success. Yes, we have to admit that one concern about this environment will be how to garner Enough users' trust. For instance, let's look at Hive as a platform, what if a user decides to take out a loan and dump an account, how can one trace it? Another thing to consider is this, what legal steps can this platform take concerning this since the government is not in support of the web3 environment.
source
This is where I feel the minimum stake against maximum pool request should come in. Hive and InLeo have a big hedge here. How? Simple, consider both current prices. I feel if this should be put into action, there will be much profit to this ecosystem. A defrauder will be at a long term loss. How much are we expecting hive price to be in the Next 365 days? How about LEO too. Let's say the minimum stake is 30% of 100% for a 5% interest rate. Better calculation in the long run and you will know how much will be feeding back into this ecosystem. Whether a percentage should be burned to strengthen is a topic for another day.
What this means is that the loanee will have to lock down 30% worth of his 100% request. To get $100 dollars worth of token, you must have locked up to $30 dollars in token equivalent. Of course you still get $100. Your $30 dollars is refundable as long as you comply to pay off the loan. There are many added advantages to this, both the platform and the loanee involved will stay in profit. That locked tokens will be yielding which will also be another means of making extra bucks on the long run.
To conclude, let me add, my idea is always centered on how to bring in entrepreneurial minded users into this ecosystem. The future of web3 lies beyond just price swings to utility. There is a need to balance this ecosystem by tapping into every opportunity that presents itself worthing. The world will continue transacting, entrepreneurs will continue depending on the OPM strategy to increase their monthly or yearly returns. banks have been helping out yet it seems their charges are off the roof. An opportunity indeed it is presenting for the web3 environment.
Posted Using INLEO