Friday, August 11, 2017

Saving and lending ether crypto

The crypto-currency economy provides the environment to democratize the lending market. First, crypto-currency is not effected by FIAT-based currency inflation. Therefore, borrowers are treated equally in positions since they are all borrowing ETH. This means that no government monetary policy or economic change in FIAT-based country affects directly to crypto-currency lending. Secondly, the lending market is open for all lenders and borrowers. It results in lending, that is not restricted by borders, jurisdictions or even by the access to banking system.
Another new company, the first to offer AS&L for crypto.  It is term structured (time dependent) and they will foul it up a bit until they learn default insurance.  It is a start, a tiny step.  The try and calculate volatility over three month periods to insure collateral.  

The better bet is to calculate volatility and charge interest immediately to reduce volatility. This insures that pricing risk is shared.  The Eth needs to be pooled and auto traded, but the block chain may not be fast enough without a custodial coin and trusted network.

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