Let’s discuss a voting system and criteria - and later, when we decided what we want to see, on actual values maybe in a separate discussion.
Current idea is a coloured flag system:
We have green, yellow (orange), and red. We’ll agree on actual numbers for this.
If a loan request is all green, it is automatically approved
If a loan request has at least one, but a maximum of n yellow flags/signs, it’s put to a vote
If a loan has at least one red flag, or too many yellows, it’s automatically denied
For loans that are put to vote, we see a table (like an excel sheet), with the actual values, colour-coded to see what’s green and what’s yellow, and our agreed values for these intervals - this way we can see how far they are from being green
An alternative idea is a letter grade system:
How about a letter grade system. A+, A, B+, B, C+, etc. Ones that A and B auto get approved as a Safe, others require voting/input depending on the letter grade.
It may make sense way down the road as well - that you can can invest in just “safe” ones and get lower interest back, a mix, or higher risks ones like D, E, F with higher reward.
I’ll keep this comment updated based on the discussion here, so you can always see the up to date consensus.
I like the idea of automating a portion of those that would be marked “Safe” I believe this is essentially how many of the large lenders do it and how approvals become quicker. Its either determined safe by the set criteria, and gets approved, needs review, or is declined, with WHY it was declined, with the option to request additional consideration based on addition submission criteria.
I like automating certain requests (green) quite a bit. If someone has used banksocial in the past and has been consistent in their payments, I believe we should fast track approvals for them, if possible.
Nice idea!
I’ll update the loan data discussion with this data about a past BankSocial loan idea, it is brilliant, and in my opinion, definitely need to be considered.
Edit: actually, could you please post this there? On second thought, I’d like to see some community reaction to this before including it in the post. Couldn’t imagine any reason why it would not be a great idea, but… You never know, maybe someone will have a good point we didn’t consider.
Now that you say it like that, yeah… It would be surprising if it weren’t. Or maybe not. It depends if we want exclusive use of blockscore, or have an ambition as a standard+crypto credit score provider. In the latter case, we cannot factor our own loans in the score as an extra, only just like any other loan.
Overall this would be ideal. Streamline the process, allowing for loans to to place quickly if green. Win, win. Then we go forward with voting or having delegates vote for the gray areas. I believe this should get ironed out first.
How about a letter grade system. A+, A, B+, B, C+, etc. Ones that A and B auto get approved as a Safe, others require voting/input depending on the letter grade.
It may make sense way down the road as well - that you can can invest in just “safe” ones and get lower interest back, a mix, or higher risks ones like D, E, F with higher reward.
No complaints here. I am a fan of automatic approval for anyone with green flags however I’d like to see what the data would look like first for an applicant before casting a vote.
Interesting idea, I’ve added it to the top comment as an alternative.
My opinion: For starters, I’d like something as simple as possible, so I vote for the green-yellow-red light system, because it is simple to see, simple to understand and simple to develop, but long term I definitely think your letter grading system idea has merit.
I like the Red Yellow Green idea for automating the approval process and that’s what I would vote for on the automation part. I also honestly really like the grading system as well but I think that could be implemented in a way that we could give all loans a grade and then we could stake our tokens to pools based on grades. The lower the grade the riskier the investment, higher risk higher return. Not sure how that would work with what we have planned though.
I like the idea of a automated green-yellow-red system where the process is quick & responsive for the user. Simple & clear. Only when it falls into the yellow category should it further looked into by the community or the members we elect to make those tough decisions.
I agree that this will be a continuous work in progress to refine and improve if this is defined and designed by ourselves.
Perhaps there is something ‘off the shelf’ that would fit our needs, would obviously require investigation, pricing agreement etc - but dealing with 3rd parties for tools has its advantages and disadvantages