Be the first Peer-to-peer network loan platform with digital currency as pledge assets

Silver piece small loan is on September 12 just on-line a peer-to-peer network loan platform, but it and now Peer-to-peer Network loan market on any platform is not the same, because it is a digital asset lending platform.

What is the digital asset loan platform? Its essence is a kind of collateral model of Peer-to-peer network loan platform, but the assets used for pledge is not traditional real estate, but various digital currencies, including Bitcoin, Wright coins, silver coins and so on. In other words, the borrower in the launch of the loan project needs to be their own digital currency as a pledged assets to the silver ingot small loan, if the default situation, the platform will be paid to the corresponding investors.

Mortgage/Pledge mode is a typical business model of Peer-to-peer network loan platform, which has strong risk-guarantee ability. Generally, the assets to be mortgaged are usually real estate. However, the current mortgage/pledge mode of Peer-to-peer network loan platform is not much, money is one of the most famous. Because, in order to attract more borrowers to access their platform, most of the Peer-to-peer network loan platform will choose to take unsecured way to start the loan project. This lowers the threshold for borrowers, but raises the stakes for investors. And the platform side in the wind control investment in human costs or research and development costs will be increased accordingly.

Silver piece loan with the help of digital currency, this new asset form optimizes the business process of the mortgage/pledge model Peer-to-peer platform. The platform simplifies the process and procedures of the pledge through the digital currency and improves the efficiency of the transaction. Compared to real estate, the digital currency has several advantages: strong liquidity, easy to cash in, trading transparent and so on. In this way, when the asset pledge, the borrower will be the digital money into the silver ingot small loan corresponding wallet can be completed, and eliminate the real estate mortgage need for a large number of documents, procedures and procedures, streamline processes, improve efficiency. In the event of a breach of the same time, the Silver piece small loan can immediately the defaulting borrower pledged digital currency into the investor's wallet, complete reimbursement.

Let's look at how the small piece of silver ingot works.

The first step is that the borrower must be a holder of the digital currency, and he can borrow at a certain rate of pledge. The pledge rate will be adjusted according to the different digital currency: The pledge rate of Bitcoin is 60%, the Wright currency is 50%, and the silver dollar is 40%. This is directly related to price fluctuations in different digital currencies. In other words, if you mortgage the value of RMB 1w renminbi, you can launch a maximum of 6000 yuan of loans.

In the second step, the digital currency will be transferred directly from the borrower's wallet to the corresponding wallet in the silver piece. The advantage of the digital currency is then reflected: the borrower can track the transfer of funds directly on the block chain. The transparency of capital flows has made the fraud situation almost impossible.

The third step, in two ways:

If the borrower is paid on schedule, the digital currency pledged by him will be returned to his wallet after the repayment is completed. Silver piece Small loan set the repayment period generally not more than one year, this is also because the price fluctuation of the digital currency is more frequent, the pledge period too long will make the risk increase. For investors, the platform gives the expected return rate of 10% to 30%, the specific rate of return determined by the market.

If a borrower defaults, it needs to be repaid. There are two kinds of defaults: one is the failure to pay the repayment, the other is the possibility of insolvency. In the process of repayment, the platform will always monitor the price fluctuation of the pledged currency to set up the corresponding warning line to eliminate the possibility of insolvency due to the decline of digital currency price.

For example, a borrower pledged a value of 1w yuan, when the value of the bitcoin fell to 8000 yuan, the platform will remind borrowers to increase collateral to meet the 1w standards. If the borrower does not add a Bitcoin pledge, then when the value of the Bitcoin continues to fall to 7000 yuan, it is possible to trigger a cordon, which can be regarded as a default, a direct cessation of the transaction and a payment. Of course, the trigger line is what the standard is not a fixed value, the Silver ingot small loan will be based on the price fluctuations of the digital currency at any time to adjust to ensure the effectiveness of the mechanism. My question is, I wonder what the borrower's acceptance of the mechanism is? If the cordon is triggered, they have no extra digital currency to add to it. There is no answer.

The founder of the Silver piece, Dundee, is a serial entrepreneur. In the field of digital money, he took "silver ingot coin" as the starting point, and then made a trading platform "silver piece", now, through the small loan to extend to the network loan business. Silver piece Small loan Guo tell 36 krypton, in fact, they first thought to do such a product, not to solve the current Peer-to-peer network loan platform problem, but hope to solve some of the digital currency players need. In the long run, the market for digital money is generally bullish, especially bitcoin. As a result, many Bitcoin holders do not want to sell their digital currency, even if they face cash-flow difficulties. Therefore, the silver piece loan provides such a platform to help these players through the digital currency in hand to complete the necessary cash flow.

But how big is the market? At present, the number of Bitcoin players in China is limited, which will greatly limit the size of the platform. And, in my superficial perception, are most of the assets of the digital currency players in relatively good condition and will they need to borrow money from the loan platform? At the same time, investors on the other end of the platform also need to have a good sense of the digital currency and acceptance, they even need to have a wallet (if you want to cash out and exchange transactions) to deal with possible defaults, which will raise the threshold for investors to enter.

However, it is true that more and more people believe that virtual currency is not just a trend, but has become a trend. On the virtual currency of the spring breeze, silver piece small loan can be recognized by the market? I will continue to observe. If you have your own opinion on this peer-to-peer model, please email me with: zhangyuxin#36kr.com.