Original proposal discussion: Offer Keep Your Crypto small PERSONAL hard money loans from the SLP
Simples, we want to offer a fully automatic, small amount Keep Your Crypto personal loan to individuals.
Details (copied from the proposal discussion post):
Basic idea:
- We accept only major coins or tokens (ETH, BTC, USDC and similar).
- We offer loans from only 500 usd up to 20.000 usd.
- Terms are 3, 6 or 12 months.
- No fuss rates! (See table below)
- No credit score check necessary! (Have to check if this can be legally done.)
- We offer a loan of 60% of the value of your crypto. So, if you have 1.000 usd in ETH, you can get a 600 usd loan.
- Fully automated, no need for delegate or community votes for loans: A simple online form, where you do KYC, select a term, select the crypto, tell us how much money you want OR how much crypto you want as lien, and we tell you how much crypto you have to stake or how much money you can get. If the person likes this, press the button, as soon as we have the crypto, we send the money. You can have the loan literally in minutes.
- In case of a default, we check prices, take a defaulting fee plus the remaining loan amount, give the person back the remaining crypto and add the taken part to the SLP. In case of a market crash, if the crypto isn’t worth enough, we give the remaining amount of the loan to a money collector company (whatever that’s called in english
). - Huge advantage that with these smaller loans, the SLP goes much further.
Rate table:
Similarly to the builder/flipper hard money loans, based on WSJ Prime Rate plus BSL rate margin plus/minus other factors.
Base rates:
WSJ prime rate (currently): 4%
BSL margin: 5%
Length of loan rate increase:
- 3 months: 0%
- 6 months: 1%
- 12 months: 2%
- 18 months: 3%
- 24 months: 5%
$BSL Token Holder Rate Discount:
Discounts are given to $BSL holders who stake their tokens in the SLP for the term of the loan. Each $1,000 worth of $BSL staked at the time of closing gets a 0.2% reduction in rate with a max of 1% with $5,000 $BSL Staked. When the loan term completes, the borrower can choose to unstake their tokens from the SLP.
This way, our rates go from 8% to 14%, which is very low in the personal loan market, especially at the lower amounts (up to ~10k usd).