DeFi

hacking on a new SocialFi idea... what's your Farcaster account worth to you?

and what would you do with the money?

https://www.weponder.io/surveys/1847

would you put your farcaster account up as collateral for access to capital, if you could?

building /hatsprotocol | 
proudly mid-curving it since 1995

Totally. 

Think of it like a credit card or personal loan. All you put up for collateral is your credit score.

This is under collateralized lending with your social graph as collateral. 

The question is, who would underwrite this loan? What my fid is worth to me has no bearing on what it's worth to others.

Decentralizing infrastructure with Kleomedes |

Building collaboration with Nearchos |

/octant Community Grants Council |

/colinks-and-co CoDAO Council

Thinking of it in terms of trad underco'd loans, underwriters look at what you're doing with the loan and what the likelihood of payback is.

The "collateral" in this case, which is basically reputation, is basically the threat of punishment. So the value is less of "what is my fid worth to others" and more "this is how important it is to me to repay this loan" or "this is how certain the loan provider is that I'll repay it". And the interest is the incentive for the lender.

Now, there's an entirely different direction with fids, because they can have more value than just reputation. If the fid has tangible value to someone else, then it can be examined more like a collateralized loan where ppl want to lend because they WANT you to default because the fid is the value. In this case they're going to give lower interest for higher risk.