Ideas on the future of banking and DeFi on SN

DBC’s will enable a lot of possibilities on Safe Network (SN) but what will those possibilities be exactly?

Let us share our ideas, our must haves, our wants, or what we may be intending to work on in the DeFi space within SN.

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I’m very interested to hear more about what @loum is looking to achieve!

Check out his introduction post and make sure to follow his link.

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I found the idea behind Klarna interesting. They tout “buy now, pay later” and the reason they were able to raise so much money is that some 70% of items put in shopping carts never actually get purchased.

They were aiming to solve that problem for online retail but IMO they are quite tricky and predatory in a sense. They require a debit or credit card on file to charge if not paid after 30 days or 3-6 months (I think) if on consignment.

Is this just plain irresponsible? Is it a problem that doesn’t need solving? Or is there a way to benefit both parties by reaching some middle ground?
Perhaps a small amount of tokens could be locked up or staked? Or computing resources allocated to the lender to farm with (not sure how to prevent people spending then shutting off machines)?

Curious what people think of this idea. Would drive a lot of commerce to Safe Network if solved.

Perhaps currencies could be staked or lent to other users in a similar way to resources for farming: simply deposit them in your safe, wrapped in DBC, and then earn interest or rewards like farming, longer you have them there the more SNT earned. Withdraw them, you lose that earning power.

Just a thinking out loud post, here, no details considers, nor thought on how borrowing might work.

Edit: I now realize I’m saying almost the same thing as you Nigel… which might mean a kernel of an idea! In this case I was thinking other crypto such as BTC etc.

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I think Klarna isn’t great. I use it almost every time I buy something online if available. I don’t need to enter my name,address or credit card number,so it’s convenient to use and once the item is shipped,notifications will come in the app that it’s time to pay. I wait to pay until the I receive the item, so if I don’t receive it, I don’t pay or if I want to return it I don’t pay. It’s much more convenient than other payment options. I don’t see any issues with how they’re doing anything now.

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Yeah, @intrz I probably should have specified my reasoning on what I do have a slight problem with.

The fact that people don’t check out often is because they don’t have the money but when you make it easy to do things on credit for people that may not be responsible (though they should be but are a bit abstracted from the reality by the ease of use) enough to keep good books and so if they buy now and forget they overspent later and then they (Klamath) charges your card or takes you to collections, it can be messy.

Just trying to think of a way where there isn’t as much at risk for the one buying on credit but also benefiting online retailers by having the convenience of buy now, pay layer and making sure the lender still gets paid.

Klarna sounded really neat though I’ve never used it so it’s cool to hear your experience using them.

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Ah, I see. I usually don’t feel comfortable buying things on credit if I don’t have the money, but I see how the convenience could make it easier for people to ignore or forget that they can’t afford something and how that could be bad.

When I buy something with Klarna I wouldn’t mind if the money was immediately charged actually, but I’d still prefer if it wasn’t paid out to the seller until I get the product and decide I don’t want to return it. Klarna has made it very easy to deal with returns and disputes with a few clicks in the app. I suppose this process could be made even easier though if you could get and print a return slip directly from the app with just some clicks instead of having to contact the seller.

So maybe as mentioned you could pay immediately and then it could be staked etc while in escrow and once you get the product you release the funds to the seller you get the interest or staking rewards earned while locked.

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I’d love for this to be the new normal by having a multi-sig escrow cause I really agree, especially starting off in our decentralized network where identity and trust are not established.

This is a novel idea! I like it. Would prolly have to be a hella large yield for how short the stake would be in escrow though, especially if retailers are trying to compete with Amazon 2 day shipping. Something to marinate on for sure.

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I don’t know about how klarna functions internationally, but as a Swede, they are fantastic. This is a Swedish perspective, but international results might vary.

Most miss the business model. There are pros and cons. You have to understand the environment.

  • In Sweden, debt laws are closer to medieval. If you sign, you are on the hook, and there isn’t the same concept of bankruptcy.
  • Most Swedes don’t have actual credit cards

Klarna makes it possible to spend as if you have a credit card. There are restrictions (detailed below). The common terms are 1) Pay in 14 days (no cost, no interest) 2) Pay in 3 months (3.50 EUR flat fee) or add to monthly account (no cost, no interest). 3) fail to pay, you get essentially credit card terms of a small fee + 15-20% apy interest. In the end, not so much different than a credit card. Except secured against your blood.

The restrictions are: you can only ship to your tax registered address. This is automatic when you select klarna… e.g. no choice to fill out a shipping address. And in many cases you must sign a MFA with an authorized bank. This is key because it virtually eliminates credit card fraud. It is also central to the business model, e.g. if you eliminate fraud from shipping to wrong address and can verify the identity of the ordering person as a basic prerequisite, then much trickier to cheat.

In the end, what Klarna does is to take the entire risk of default in exchange for a minimal (compared to North American credit card) fee. You have to remember that in SWE, there is no way to get out of it. If you pay (and really you must), then it’s a high volume, low risk skim. If you don’t then it is essentially a credit card company, but secured against any assets you might own.

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To win, a platform must never get congested — no matter how many people are using it.

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Good article by Glassnode that analyses the Defi ecosystem DeFi Uncovered: Activity on DeFi Stalls

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That used to be called “lay-away” in the 90’s.

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That’s how I bought my first git-fiddle :slightly_smiling_face:

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“Lay away” was shagging while working away from home.
We referred to what you were talking about as the “never-never”.

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This git-fiddle has been forked.

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image

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My son reports that Guitar Guitar in Glasgow has a fairly extensive list of songs thou shalt not play whilst browsing axes. Times have moved on and its not just Stairway and Smoke on the Water that cause nervous breakdowns in instrument shop staff. He said much of Nirvana and Oasis would get you ejected as well :slight_smile:

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@Nigel Thanks…

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Does banking have a future?


Source Kraken
Last time I check, all the polarbears ditched their “melting ice cube” accounts and it’s not because they thought that their accounts would be frozen :joy:

How shocking that volatile btc seems to be buying back purchasing power for those who hodl it.

Hodlers mumbo, does your currency compete? SAFE toddlers mumble, does your “money” compute?

As more SAFE services come online, we’ll have a real unpredictable “money”, compare to the predictable currencies :roll_eyes:

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