If I don't have say 0.1btc, maybe I will deposit later for I can have my 0.1 when I get my fee. Can I join for now?
This is a bit like regular banking lending: you have to have someone guaranteeing the payments if the person taking the loan defaults.
Imagine John goes away with the money he asked as a loan... Why would other participants (who have nothing to do with John or Lucy) have to pay for John?
entrance requires referal.. im guessing the referer becomes the guarantor
Make sense but surely, you'd be very cautious when referring someone, you'll never know what the guy would do later lol.
But don't you think people will just join just to get a loan?
though i do think the website can be abused, not only by users but by the service operator putting in his own fake profiles to gather funds from others.
but if it is legit.. then i see that you will need to deposit some collateral. i think i remember that even silkroad had a collateral deposit for the sellers. so that they couldnt just run off taking customers funds without delivery.(forgive ignorance if wrong, it was just research i read a couple years ago)
so the collateral thing is a positive motivation to reduce the grab and run scammers.. but as you say those wanting 0.99999999 are not gonna deposit 0.1 just to be able to ask for 0.99999999 and knowing they have to repay 0.13 within a month.
the interest rates are too high.
its good in theory.. incentivising and rewarding lending in a crowdfunding way.. but not in practice,
lending to strangers across the world wont work out as the legal costs to sue them would not make it worth sueing them.. and having collateral deposited more than you want to request as a loan wont work either..
and thirdly
lets say someone did deposit 0.1 to then ask for a 0.99999999 loan.. if not repaying.. the loan giver will only get 0.1 not 0.13.. meaning not every lender will get their 1% a day.
this would only work if the person needing a loan after depositing his 0.1 collateral and wanted a 30day loan.. would only be allowed to request under 0.077 so that anyone giving out 0.077 is guaranteed 0.1(30% profit for 30 days)
which would be good for the lender.. but not for the person in need for funds as thats going to be even less likely that they would have 0.1 to use as collateral just to ask for 0.0769
but thats just me theorising something, even if it doesnt become successful, and gets abused, its still worth theorising potentials.. just for fun