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Loanyee 💸

Uncollateralized lending against your on-chain salary

Problem

DeFi enables the finance without middleman and it is already a big financial market with $70 billion TVL. But, the current DeFi focuses on asset portfolios, where people can manage and increase their assets, not so much real use cases yet.

We believe next billons people come to crypto space for income opportunity, which is more familiar for them, compared to asset management. But right now, if they receive salary with crypto, they have a challenge to borrow money in both DeFi and TradFi:

  • Major lending protocols are still overcollateralized with the need of 125% collateral
  • Existing undercollateralized lending protocols are mainly for institutions
  • They don’t like or don’t have a credit on TradFi

Solution

That’s where Loanyee comes in!

Loanyee is uncollateralized lending against your on-chain salary

If they receive the salary with Superfluid cash stream, they can borrow instant and uncollateralized loans by splitting some portion of their future salary to lenders. Our goal is to empower people and help their daily life by giving them the access to uncollateralized loans and providing instant funds. For lenders, they can also enjoy higher APY than overcollateralized lending protocol up to 30%.

How it works

We make it happen with just 3 simple steps:

1. Borrowers set their loan condition like the amount or duration they want to borrow. we limit it with 50% DTI (debt-to-income ratio) as maximum.

2. Borrowers ask employers to change the destination of their salary stream, from their wallet address to our contract address.

3. Once lenders deploy the loan to borrowers, the salary stream will be automatically split to borrowers and lenders, depending on the loan condition and interest rate.

Future work

This is just a beginning, we are planning to improve the protocol to be more capital efficient:

  • Dynamic APR based on DTI and employer/employee credit
  • peer-to-pool model instead of peer-to-peer by dividing the borrower with the risk level
  • collateral mechamism to reduce the risk
  • ZKP to hide their actual wallet address, so they can borrow money while keeping their privacy.

We will expand the use cases, not only employees but also business or creators who receive income with Superfluid money stream.