How Decentr’s DeFi dLoan Function Benefits DEC Holders

5 min readJul 1, 2020

Decentr’s DeFi features are designed to offer a market-leading solution that allows not only large-scale entities and businesses to access and accrue interest in the crypto loans market but also regular users with small amounts of capital.

Decentr: Serving the underserved consumer crypto loans market.

The Decentr “dLoan” Concept

Decentr’s consumer crypto loan solution can be achieved by regular users with even very small sums of DEC, held in their dWallet on their secure Decentr account. DEC held within a dWallet can accrue interest via the dLoan investing pool, with no specific crypto or trading knowledge. This mainstream access will allow Decentr to access the underserved (and potentially very lucrative) consumer crypto loans market.

How dLoans Compare with Similar Protocols

The Decentr dLoan function has significant economic and functionality advantages over comparable DeFi Dapps and protocols. This is because the dLoan feature is underpinned by a suite of mutually supported dFintech functions: including dPay, Personal Data Value (PDV) and the Decentr Dec system reserve.

In effect, each one of these interrelated functions further strengthen the stability and hence the value of the others, giving the dLoan function unparalleled liquidity and fungibility.

This is achieved because the PDV function functions as a personal “exchange rate” assigned to each user that allows users to pay for goods and services online at a fluctuating PDV rate that is determined by a user’s positive internet usage and engagement, as expressed in data. (Decentr’s core tech creates 100% secure and decentralised dataflow that, when integrated with blockchain’s decentralised data storage, gives data superior “valuation” and “value store” properties to “money”.)

By way of an example, when a user surfing the internet with the Decentr browser wishes to purchase a product, for, let’s say, $10, the user clicks on “buy” and a Decentr dPay window (similar to 0x Instant) comes up prompting: “Buy this $10 item for $9.90 at PDV 1.1000?” (assuming DEC 1 = USD 1 for ease of calculation). The user clicks “yes” and if this user has never used their dWallet, or does not even know what it is, our system will then prompt the user to either credit their dWallet or pay by credit card, in order to automatically exchange their payment currency into $9.90 worth of DEC to complete the transaction.

The exchanged amount of $9.90 is sourced from the open market via DEX liquidity pools or our own internal dEx, unless the user already has sufficient funds in DEC in their dWallet.

It is important to note that aggregate system-wide PDV — what we term Aggregate Data Value (ADV) — is a key factor driving the market price of DEC, with DEC market price on average increasing 10x the amount of ADV (DEC’s data-value-mining-as-a-PoE-protocol being a direct analogy with Bitcoin’s PoW protocol).

How dPay Benefits dLoan Participants

In the previous example, the dPay system requires that a user physically pays the hypothetical $9.90 in a currency that the user nominates, and this amount is exchanged for DEC from the open market, driving the overall demand for DEC up, with the remainder of the amount required being drawn from the dLoan investing pool of participating users.

The money loaned to match the needs of purchases and loans means that the DEC system reserve remains intact and is only ever used to supplement periods of heavy purchasing/spending and larger loan amounts, while also underwriting dInsurance if any instances of theft or hacking were to occur.

Unmatched Liquidity

The advantage with Decentr is the liquidity offered by the dPay feature: the dPay feature is not like a traditional peer-to-peer (P2P) platform or an exchange; in a P2P/exchange scenario a user’s assets are typically matched and then lent to another user. On Decentr, our protocols aggregate the nominated supply of each user as part of the larger total aggregate investing pool. This investing pool is determined by economic activity on the site, as the investing pool is the sum total of the amount required to supplement PDV “discounts” as regards purchases and loans.

dLoans are also attractive for borrowers because they are made at a fluctuating rate of interest personalised to a user’s PDV, with repayments also being reduced at an amount determined by a user’s fluctuating PDV.

Benefits to Dec Holders in the dLoan Investing Pool

Any user can nominate a DEC amount from their dWallet to be automatically included in the dLoans aggregate investing pool.

This amount accrues an aggregate fluctuating APR; however, what is critical to note is that this APR is directly linked to ADV, and is fixed at a fluctuating X% that is always higher than ADV. This means APR can never fall below this X% amount, assuming stable ADV: this assumption of stability is critical and is based on the ADV/PDV feature incentivising the generation, reuse and exchange of high quality, refined and structured data on the platform (which, as discussed, underpins DEC value) — to the benefit of Dec holders and the wider Dec token price.

However, where a user’s PDV is above the platform average, the user’s APR increases accordingly, meaning users who provide value to the platform will benefit with increased returns, further incentivising platform interaction and high-quality data generation, reuse and exchange.

This differs from traditional DeFi, as currently those who have the most capital are the ones who typically benefit the most, creating an asymmetric economic system that favours capital over output. On Decentr, data-as-value, underpinning as it does DEC value, trumps pure capital in terms of generating ROI, evening the playing field between the “haves and have nots” while making this the ideal, user-centric paradigm to service the consumer crypto loans market we are carving out.

Considering that PDV is based on data generated, the activity of releasing funds as part of the aggregate dLoan investing pool itself generates significant data as part of a lender’s PDV further ensuring overall stability of the platform and hence DEC utility and market price.

We look forward to answering all your questions. Please find our official links below.

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