Re: ICO [ANN] Getline - P2P Lending Platform, started in the pre-Ethereum era |2015|
Seems great but can i know what is the difference between say your platform, compared to traditional counterparts such as the likes of Bitbond? I mean i don't really get how your system will work alongside Ethereum.
If you could explain in a bit more detail that would be great.
How will collateral be held by the lenders?
If you could explain in a bit more detail that would be great.
How will collateral be held by the lenders?
Information asymmetry and adverse selection state that borrower has more information about his situation and motivation than lend. So adding collateral can add more information for the lender. There is scientific proven (Chan and Thakor 1987) that borrower willingness to provide collateral will be inversely related to PD. So adding collateral will reduce a PD.
Collateral will be held by smart contract - so investor cannot scam the borrower
