33 sats \ 4 replies \ @rothbardllc 3 Nov 2022 \ parent \ on: Fuji Money AMA bitcoin
Sorry to be such a downer on all your hard work to this point, but if you are absolutely clear with potential borrowers about this complete loss of bitcoin on liquidation, your chances of success with this product are essentially zero.
It's an enormous penalty, Outrageous, even. Again, brings into question all of your thinking on this project for you to think this would work in the real world.
We already communicated that the minimum collateralization ratio will decrease over time as low as 110%.
We value your feedback, ideally we can have an alternative contractor version with compound interest and decrease the amount of confiscated collateral
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then why not launch at 110%? I can go to Amber right now at 110% on unlimited BTC. And get a decent remainder if I get liquidated.
Take a hard look at what you're doing and ask yourself exactly why you are setting up an enterprise with a maximum adversarial relationship with potential customers.
It's because you want a risk-free shot at 25% of your customer's bitcoin.
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The tradeoff is zero interest. I wouldn't be surprised to see some decent traction.
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Interest on these types of tenors is negligible. The whole business model is liquidation fees, and these are unconscionable. Sorry to be so harsh but we really don't need this sort of scammy thing infiltrating Lightning so early on.
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