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Mercury

Lending Through the Ripple Network

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What is the purpose of these loans? You could easily spin up your own RCL.DR and there are wallet apps with QR codes etc on github, if the people have smart phones.
Now that we have Escrow, and PayChan, and IOUs with demurrage that can be tied via orderbook to XRP (if desired) I think mechanically you can make a "loan" on ledger. Probably in 1 or 2 different ways. Lets see what finally comes out with ILPv4, I have a feeling this will unlock smart contracts in a big way.
 
 
These loans are for individuals to purchase food items for resale mostly. One is for a small truck to drive through the city delivery those food items (the truck is about $3500).

The income derived from the sale of those food items would more than pay for the cost of goods, loan payments, and provide personal income. We have been running the numbers and things look very promising! I am very excited!

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@Mercury the way I read your original post is that you're thinking of something that serves the XRP Chat and maybe the larger Ripple community, not something for the outside world. I also get the feeling you're thinking that the main resources would be the people, not necessary the technology. An interledger implementation would be an obviously future step if the thing takes off, but minimal viable product is basically one that runs on the social capital of the community using any means necessary to make transactions.

Am I in the ballpark, or am I projecting my own ideas into yours?

 

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1 minute ago, brianwalden said:

@Mercury the way I read your original post is that you're thinking of something that serves the XRP Chat and maybe the larger Ripple community, not something for the outside world. I also get the feeling you're thinking that the main resources would be the people, not necessary the technology. An interledger implementation would be an obviously future step if the thing takes off, but minimal viable product is basically one that runs on the social capital of the community using any means necessary to make transactions.

Am I in the ballpark, or am I projecting my own ideas into yours?

 

Succinctly put as always @brianwalden.

I was more or less interested in how people would perceive and/or implement the idea- it was mostly academic, but if there was interest maybe a pilot or something starting with our own community here.

If it was really successful- who knows?

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Here's the thing. Most of the community is interested in trading and speculating. I don't think the demand for other services is there.

One problem I think is out there to be solved is exchanging money from fiat to crypto and back. If the fees don't get you, the restrictions and regulations will. Does anyone know what percent the average person pays to get in and out of the crypto world? Could we provide that service for less than 5% per transaction? What about 1%? Can we help the guy who wants to deposit $20 from his weekly paycheck into XRP? And the guy who wants to sell $100 worth of XRP per week so he has some spending money?

I think if we solve that problem, you can grow it into other services. If someone has used you as a gateway 10 times without ripping you off, you can consider trusting them with a small loan. If the model works with XRP and a few popular fiat currencies, it should work with other assets as well like the gift cards that someone mentioned.

The more I talk the more i realize I'm just describing Ripple Labs' original conception conception of Ripple.

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Succinctly put as always [mention=68]brianwalden[/mention].
I was more or less interested in how people would perceive and/or implement the idea- it was mostly academic, but if there was interest maybe a pilot or something starting with our own community here.
If it was really successful- who knows?
Sorry I took this in a slightly different direction@Mercury. I thought you were just talking about the tech in general, not specifically about implementing the idea. Again, sorry.

That said, I would be interested in a pool like you mentioned...alas, I am nowhere near the 2 year mark as a member. If you do this please keep me in mind!

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11 minutes ago, buckor said:

Sorry I took this in a slightly different direction@Mercury. I thought you were just talking about the tech in general, not specifically about implementing the idea. Again, sorry.

That's fine. It's always good to look at other successful models and the microlending one is a particularly good fit for what Mercury was describing.

Back in the day I tried to do something with Ripple and and one of the microlending charities. Unfortunately there was literally zero interest - it's the nature of nascent Ripple. It's hard to get value in and out, and the value you've got in is working hard for you. Anyone who wants to do something charitable would just do it directly.

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53 minutes ago, buckor said:

Sorry I took this in a slightly different direction@Mercury. I thought you were just talking about the tech in general, not specifically about implementing the idea. Again, sorry.

That said, I would be interested in a pool like you mentioned...alas, I am nowhere near the 2 year mark as a member. If you do this please keep me in mind!

No worries mate, I am more than happy to follow where a conversation goes

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On 07/02/2018 at 7:38 PM, Mercury said:

Yeah, this is the biggest issue I also keep coming back to.

The reason to lend is simple- make more, or if you altruistic- expand the ecosystem. The reason to take a loan is harder to define.

Ripple is not yet a payment system, so reasons to finance through it are minimal. I have come up with a few ideas:

  • business looking to XRP linked products (ie. vouchers)
  • wallet activation
  • ripple related projects (ie. investment)

I could argue a case for any of them, but the truth is there is just not enough demand. Of course this might change if loans were offered (ie. XRP becoming a entry way to secure other cryptos)

Very good idea and intro @Mercury. In terms of what should be eligibility criteria/reasons for a community member to take a loan i think it would be reasonable not to be that harsh here as brick and mortar banks are. It all comes to community members trust each other. Say, if any trusted XRP chat member wants to take a loan he/she shouldn't be questioned as to what is the purpose of a loan.

But when it comes to possible reasons to take a loan @buckor and @brianwalden have named quite a few of them. 

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