Not so great or great?

[sean3.eth]

I saw a decent name on NFTfi (qualitycontrol.eth) that I offered a .07 eth loan to see what they would do. I think they had it up for sale for .1 eth and I figured he might take it. Loan is only for 7 days and they took the offer. But now when I click on it, I see Time Equity of $1 and an expiration date of 11/23/23 and now I am not so sure it was a good idea. While almost everyone I talk to is convinced that everything is about market price, this borrower  effectively had only $1 of value left on what he had actually paid for to register it. The loan he got was for $115. In a way, he spent $5, used of $4 of the value and then parlayed the last $1 into a $115 loan. It makes me think that Time Equity is probably worth looking at even though others will disagree.

[domainer]

My take is not great but Sean have you considered adding another valuation metric below the Time Equity, which is SEO rankings and also revenue generating opportunity ? Even if speculative, could be fun, get people thinking?

[sean3.eth]

My take is not great but Sean have you considered adding another valuation metric below the Time Equity, which is SEO rankings and also revenue generating opportunity ? Even if speculative, could be fun, get people thinking?

Hmmm... since valuation might be tooooo speculative, maybe there is a way to come up with some kind of score that's still based on that stuff?

[edENS]

I saw your tweet about Farcaster only having 5,000 active users. That's extremely small. how viable is ENS in social media. Do you think twitter will ever adopt it?

[KHY Lending]

I saw a decent name on NFTfi (qualitycontrol.eth) that I offered a .07 eth loan to see what they would do. I think they had it up for sale for .1 eth and I figured he might take it. Loan is only for 7 days and they took the offer. But now when I click on it, I see Time Equity of $1 and an expiration date of 11/23/23 and now I am not so sure it was a good idea. While almost everyone I talk to is convinced that everything is about market price, this borrower  effectively had only $1 of value left on what he had actually paid for to register it. The loan he got was for $115. In a way, he spent $5, used of $4 of the value and then parlayed the last $1 into a $115 loan. It makes me think that Time Equity is probably worth looking at even though others will disagree.

how come you don't show the amount of money the wallet owner has in it? If they have $1 or $1 million might be useful info, no?

[sean3.eth]

how come you don't show the amount of money the wallet owner has in it? If they have $1 or $1 million might be useful info, no?

I think I got caught up in the value of the name itself and not so much the credit worthiness of the borrower, but obviously most people would want to see that so I just added in that feature. It will first check to see if the wallet address connected to the name is the same address as the owner of the name and if so, display the eth balance. If the addresses don't match, it will tell you that and then only display the eth balance of the owner's address. This is important to distinguish because anyone can direct an ENS name to point at any address they want, but they can't fake the owner.

However, one thing I already have to address is that it only shows eth, not weth, whereas weth tends to be a primary currency that is used to pay loans so it really should be shown too

[sean3.eth]

Ok just added it so that it shows wEth now too and now I'm actually worried because when I click on names I've loaned against I can already see that meatballs.eth, whose loan is due in like 24 hours has 39 cents in eth and $0 in weth.

https://meatballs.eth.loan

[KHY Lending]

Looking through a few of your others as well I'd say you are in pretty bad shape to get paid back lmao. This info is absolutely essential.

[sean3.eth]

ughhhhhhhhhhhhhhhhhhhhhhhh

[KHY Lending]

I think I got caught up in the value of the name itself and not so much the credit worthiness of the borrower,

It doesn't have to mean creditworthiness at all. Picture it like cash in the bank. That's not their credit. It's:

(1) Their ability to repay
(2) Their status

A lender can use this information to make a lower LTV offer to a borrower that has no eth as they may be more willing to make a deal.

[sean3.eth]

hmmmmmmmmmmmm.... noted. Thanks. Very helpful!

[edENS]

would 😂

[KHY Lending]

What if you could plot on a chart how much eth and weth they've had every day in their address for the last 12 months

[sean3.eth]

Ok just added it so that it shows wEth now too and now I'm actually worried because when I click on names I've loaned against I can already see that meatballs.eth, whose loan is due in like 24 hours has 39 cents in eth and $0 in weth.

https://meatballs.eth.loan

Update: meatballs.eth defaulted. I foreclosed on the name since I had never experienced doing that before. It cost me like $6 to do. Although not having any eth was probably an indicator of this outcome, the borrower uses the name in their twitter, as their primary ens name where according to etherscan they are very active with crypto, and on even reddit. If he ends up coming back to me later about it, I'd probably sell it back to him just to be nice.

[KHY Lending]

I think I got caught up in the value of the name itself and not so much the credit worthiness of the borrower,

It doesn't have to mean creditworthiness at all. Picture it like cash in the bank. That's not their credit. It's:

(1) Their ability to repay
(2) Their status

A lender can use this information to make a lower LTV offer to a borrower that has no eth as they may be more willing to make a deal.

Let's make a model:

If listed on ENS Vision for 1 eth and has > 1 eth in wallet, offer 70% LTV. (if you offer too close to 100% LTV, they will default purely because you will have met or gotten close enough to their list price. In this case even 70% might be too high.)

If listed on ENS Vision for 1 eth and has < 1 eth in wallet but more than .1 eth, offer 60% LTV

If listed on ENS Vision for 1 eth and has less than .1 eth in wallet, offer 20% LTV. As this borrower does not have anywhere near the money to repay you at the time of borrowing, you are taking the risk that whatever they do is going to somehow magically lead to them getting it by due date. 

What's the old adage? Banks only lend money to people who don't need it? There's a reason for that. If they realllllly need it badddd, offer a very low LTV because odds of repayment going to be very low.