Will individual borrowers taking ELIX loans be required to provide collateral like LEND or will they be expecting to receive loans with no blockchain collateral but just based on trust and other evaluation metrics? Thanks
Both. Initially, i believe there will be no collateral, until Devs get the legal aspects sorted out
I can see the potential to lend to ICO’s without collateral so the fact that they’re focusing on that first makes a lot of sense.
However crypto speculators using collateral to take leveraged bets on the direction of the market is the biggest lending application in crypto and is already hugely popular on centralized exchanges, BitFinex, Poloniex etc. so it makes sense that LEND is focused on offering a Decentralized version of that and I hope ELIX will too.
(Otherwise you have to get into credit ratings etc. or a trust based model like TRST which is only 1/5th value of LEND despite being around twice as long.)
Decentralized collateral can easily be accomplished by a third smart contract. We recognize that there is demand for such a feature, and that it can function as a bridge until identity/accountability solutions are developed. I imagine we’ll begin prototyping/testing a collateral smart contract in the near future. We’ve had some preliminary discussions about how it would be engineered.
We think distributing a mobile version of what you describe would make our product more attractive and accessible.
This is a feature in the later stages of our roadmap that we’ll approach and examine as we get our initial platform off the ground.
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