Quote from: davis196 on June 25, 2017, 11:47:20 AM

Interesting project.I like the trust system and the 60/40 split for interest payments.
However,as far as i understand only people who make ethereum deposits will have the right to get a loan.
Do you plan to submit other cryptocurrencies?
What if most of the traders choose to lose their 0.1 ETH and default,after they build some trust and get bigger loans?

Interest rate will also be adjusted towards token holders when the default reserve is 50% of loan pool, this ensures that a healthy system will pay out the most to token holders.

Hylen will act as a typical loan system, in that you put down collateral(ETH) and are matched a percentage(1.2-2x). The initial deposit of 0.1 ETH is held to ensure a trader doesn't take the money and run, as the deposit amount will be a larger sum then the amount received as a loan.

Eg. I'm a new borrower, and I deposit 1 ETH. I will receive 0.9 HYL as a result, with 0.1 ETH being held as my deposit. Since i'm a new borrower, my trust level is low and I can only borrow 1.2x my deposit, 1.08 ETH(0.9 HYL * 1.2 = 1.08 ETH). This isn't profitable, as you will actively lose money attempting to work the system.

My goal is to have new borrowers right above the profitable line, as to incentivize continued borrowing, but also to curb bad actors attempting to steal from the system. As borrowers gain more trust, profitability gains as well. While someone could build trust and then suddenly not pay their dues, this is offset by a sliding scale of interest rates calculated daily against the default reserve. total interest paid to build that trust should out weight any profits made by purely borrowing.

All numbers are subject to change, as most of them will be on a sliding scale for better automation.

egpublic

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