The Pixel Bank of Neoxian: daily contracts: 2019-03-27
This post contains two contracts.
The Bank of Neoxian shall loan the sum of 250 steem to @hitmeasap. He promises to repay 263 steem in one weeks time.
The Bank of Neoxian shall loan the sum of 150 steem to @jesse12. He promises to repay 167 steem. He shall pay 15 steem per week until 167 steem is reached. The first payment shall be April 4th, 2019.
@jesse12 shall hereafter be known as the lendee…
To insure payment of this loan, the lendee promises to hand over their Owner key(s) to the bank. The bank will give back new active and posting keys to the lendee. The lendee affirms that the owner key(s) are given voluntarily and their account(s) are not stolen. They promise not to initiate the Stolen account recovery procedure.
The lendee agrees that if the Bank decides to change the active key(s) and keep them private, this does not constitute of breach of contract.
Lendee also consents to Bank changing the trustee if the Bank so chooses.
The Lendee promises not to power down the account(s) to the point where the collateral would be less than the owed value, or if it is necessary to powerdown to pay the loan, then the full powerdown should go to the bank.
The Lendee agrees this contract remains valid regardless of any flags this contract post might receive.
Owner key(s) will be returned upon successful completion of loan.
Please sign below...
(pic from the game "The Last Night")
Signed, thank you
@neoxian,
Congratz for these two contracts!
Cheers~
Why such a big difference in the interest rate between loans? If my math is correct your charging the greater loan only 5.2% interest while charging the smaller loan about 11.33% interest. And I must say considering the relative short term nature of the loans your making a good profit on each. Mafia bosses would be impressed. Holding their account keys as collateral is a stroke of genius. I would of never thought to use that. Of course if someone is willing to abandon their account your stuck but that is the risk of lending.
I do believe this type of lending is the way of the future. I intend to join and be part of large lending pools that use smart contracts to ensure repayment. I expect risk to be reduced due to large scale participation. I hope I am not being to naive but for good well established lendee's I hope the interest rates will be much lower. Closer to 2-5 percent. Those that have poor repayment track records should pay higher rates of 10% or greater for short term loans. The greater the risk the bigger the reward. Has @jesse12 borrowed in the past and been slow about repayment? I only ask if that is why the difference in interest rates. I do see one will be a lump sum short term repayment while the other is a fixed repayment of greater duration. Perhaps that is the reason for greater interest. Perhaps with each an offer was made and one person negotiated a better deal for the loan. That is the way of business.
Your a pioneer to what will become the norm in lending crypto and taking great risk for doing so. Best of luck and profit.
Not all customers are the same. @hitmeasap is a more trusted repeat client while jesse12 is brand new. I charge what the market will bear. And yes, it helps to haggle. If you feel you can do better and offer loans to the general public for less interest then I do, then more power to you.
Many people talk about "smart contracts", but I have yet to see any thing concrete. Not saying it will never happen. The ability to lock up money with keys would be the most useful aspect, but I have that already with Steem being locked into Steem Power in the collateral account. It's not foolproof but works fairly well.
Thanks for taking the time to reply. Yes, the market for lending if great and wide, ripe for lenders to profit well. You make a great point that the locked up Steem Power reduces risk loss. Makes sense that a person would require steem power to be greater than the requested loan. Agree no smart contract lending pools exist yet that I know of. I do wonder and hope that the Cardano network might have some success in Africa. They continue to mold the code and try to disrupt banking on that continent. If it happens at all is still a few years for the smallest of start ups I would guess. Perhaps Steem and your service has already improved lives provided that service. Respect what you are doing to pave the way.
Congrats @hitmeasap, kudos big boss for the help you are rendering the steem community
Posted using Partiko Android
Pixely so amazing banking with precision !! congratulations on the deal
I’m always here to witness!
Thanks to you @neoxian, and congratulations 🍾🎉🎊🎈 to our friend @hitmeasap
Posted using Partiko iOS
On an unrelated note. Thank you :)
!tipuvote 0.5 hide
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