How Decentr’s DeFi dLoan Function Benefits DEC Holders

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”.)

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.

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.

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.

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