Nubits usnbt loans

[jdc]

I would like a 50-100k usnbt loan. I will put up 1% as an initial deposit and pay a premium on park rates to provide an incentive. We can figure out a way to ensure both parties stay compliant by using a third party escrow service.

regards
Jdc.

[DavidMc0]

I think lending would be a brilliant route for Nu to take.

SALT and NEXO are bringing some great crypto-backed lending products to market… imagine something similar, but no need to deal with Fiat.

With interest rates around 14-20%+ for these services, a crypto only alternative could be very profitable.

It would provide ongoing demand for NBT as re-payments & interest payments need to be made, and profits could be shared between those who buy the ‘initial currency offerings’ (effectively the lenders), and NSR owners. NSR could be required to be staked as collateral for the NBT loans, providing significant demand for it.

Would like to hear others thoughts on this concept.

[DavidMc0]

With the situation with NSR buy orders being in total a few Bitcoin, surely revenue & business model needs to be discussed?

Couldn’t lending be a highly lucrative source of revenue & demand for NBT?

If someone sells 6m+ USNBT of the 14m in circulation over the next week or so, it seems Nu could find its self in serious trouble, given it has only $5m reserves & minimal NSR liquidity to rely on.

I’m not so sure around 40% reserves were a sensible idea, but we’ll see how it goes & hope for the best.

[Graf]

I would like a 50-100k usnbt loan. I will put up 1% as an initial deposit and pay a premium on park rates to provide an incentive. We can figure out a way to ensure both parties stay compliant by using a third party escrow service.

regards
Jdc.

How would you do that?

Would you offer any crypto as collateral?

IMHO that would only work if at least 150% collateral could be offered…

[DavidMc0]

How would you do that?

If you look at SALT lending, and NEXO overdrafts, these are models Nu could adopt with some tweaks to enable lending with Nu.

It would support the peg, as NBT repayments would be required even during dips in demand, it would boost NSR demand, especially where NSR is beneficial as collateral for NBT loans, and it’d generate decent revenue, as it costs very little to issue NBT, but interest rates could be 10% per year or more.

Each NBT loan could be fully backed by collateral, e.g. with a target of 150%, that is liquidated at 110%, so there would never be a situation where there’s no backing for the NBT like Nu is currently facing.

It’d be a big investment to make, but would be a good direction for Nu (or similar) to go in.

[donthavename]

Ill take a loan for 100k too. I will go dump it all on the market right away, causing the price to goto 30 cents and buy back cheaper NBT to pay it back, and keep the difference