Check out this borrower

[sean3.eth]

I saw the name dopeparty.eth on the eth.loan homepage this morning that was listed as looking for a .1 eth loan. It got me curious enough to click on it and check this guy out: https://dopeparty.eth.loan

It says he's made 200+ loans on NFTfi as a lender. (right now the tool only checks NFTfi data). Clicking the coinbase wallet icon also reveals he has $25,000 worth eth right now. Clicking the .photos link says that the name doesn't expire until 2025. So I goto NFTfi and it says he wants terms of 300% apr over 7 days. Sounds great?! lol. What's the catch! Naturally, I extended an offer! But seriously. whattt?

[KHY Lending]

Well now you've got my attention. In lending, if something looks too good to be true, then it usually is! A few thoughts on this here. Could this be someone who works at or closely with nftfi? Why are they borrowing $160 at all, let alone on those terms, if they already have $25,000 in your wallet? It's not logical. If that's not it, is there a reward system just for borrowing and lending that is incentivizing this irrational behavior?

[edENS]

If that's not it, is there a reward system just for borrowing and lending that is incentivizing this irrational behavior?

all these platforms have rewards or tokens or a way to drive activity. probably a token farmer.

[sean3.eth]

Great. Another thing I didn't know...  ugh. But I see a link now on their site about rewards. Going to make another thread on here for that https://nftfi.com/blog/nftfi-rewards-earn-season-one/

[sean3.eth]

If that's not it, is there a reward system just for borrowing and lending that is incentivizing this irrational behavior?

all these platforms have rewards or tokens or a way to drive activity. probably a token farmer.

Just learned that loans over 100% APR are not eligible for points. https://eth.loan/forum/index.php?topic=21802.0

[KHY Lending]

If that's not it, is there a reward system just for borrowing and lending that is incentivizing this irrational behavior?

all these platforms have rewards or tokens or a way to drive activity. probably a token farmer.

Just learned that loans over 100% APR are not eligible for points. https://eth.loan/forum/index.php?topic=21802.0

Alright well then maybe he's arbitraging something else. You said the 300% apr got you curious but that's virtually nothing when accrued over the span of just 7 days. A couple bucks in interest. Might as well be 3% APR for 7 days. Almost no difference. He borrows the money and then arbitrages something else and then adds to his pile of money by using the same NFTs over and over and over? Follow the wallet and see what he's doing?

[KHY Lending]

Did you see this line?

"The 500 wallets with most secured points by the end of Season 1 will get a multiplier of max 2,5 on their final balance.

Season 1 will run for at least 3 months. Eligible loans still ongoing at the end of Earn Season 1 can still receive Season 1 rewards incl. leaderboard multipliers."

Although this loan isn't eligible, it might explain why some of borrowers on this platform are taking loans against collateral they should probably walk away from but instead pay it back. I don't know what a "2,5" max multiplier means but it does appear there is an incentive system for the reward points.

[sean3.eth]

It's a multiplier on the POINTS themselves. So if you have the most points, you get rewarded with more points. To which it says that Earn Points are at present not redeemable. and that
They may be redeemable for blockchain tokens at a later point in time for eligible users.

But here's the kicker:
Certain persons (such as US residents, other US persons and persons located in the US) are not eligible to participate in NFTfi Rewards, and their points (if any) will not be redeemable.

Which means I'm ineligible so there's basically no reason for me to care about points. However, I suppose if a borrower is motivated by earning these unredeemable points, then that could be good for a lender like myself.

[KHY Lending]

However, I suppose if a borrower is motivated by earning these unredeemable points, then that could be good for a lender like myself.

I feel like you have just solved the puzzle here. The top borrowers are listed on their leaderboard page. Can't you integrate their addresses into your tool so that you or whoever else can see that the potential borrower is basically a super borrower (that may have an ulterior motive to repay)?

[sean3.eth]

oh my god you're right. I'm going to try and implement this tonight! Amazing

[domainer]

This will be good information to have but I'm of the opinion that your preliminary theory is still the right one with how you choose to lend. If there are people borrowing and paying off loans just to get the points, then there will be a reckoning at some point in the future because the fundamentals of why they're borrowing is not sound. In a doomsday scenario where all these dream borrowers suddenly fail to pay and the illusion of value surrounding monkey picture nfts collapses, the only way to come out ahead is if your collateral compared to everyone else's is sounds. When the music stops, domains fits that box of solid collateral in my opinion. Keep working on your SEO ideas for the .eth domain names combined with whatever you're planning on the above.

[sean3.eth]

ok, NFTfi's standard api only lets you pull the top 5 borrowers and lenders so I may have to figure out another way to get more top borrowers anyway.

[KHY Lending]

ok, NFTfi's standard api only lets you pull the top 5 borrowers and lenders so I may have to figure out another way to get more top borrowers anyway.

maybe you can get this directly from the chain?

[sean3.eth]

I saw the name dopeparty.eth on the eth.loan homepage this morning that was listed as looking for a .1 eth loan. It got me curious enough to click on it and check this guy out: https://dopeparty.eth.loan

It says he's made 200+ loans on NFTfi as a lender. (right now the tool only checks NFTfi data). Clicking the coinbase wallet icon also reveals he has $25,000 worth eth right now. Clicking the .photos link says that the name doesn't expire until 2025. So I goto NFTfi and it says he wants terms of 300% apr over 7 days. Sounds great?! lol. What's the catch! Naturally, I extended an offer! But seriously. whattt?

This guy didn't accept my offer and it was the terms he wanted. ugh!

[sean3.eth]

ok, NFTfi's standard api only lets you pull the top 5 borrowers and lenders so I may have to figure out another way to get more top borrowers anyway.

maybe you can get this directly from the chain?

I guess what I can do in the interim is manually tag addresses. Right now it pulls the top 5 borrowers from NFTfi and also checks it against like top 20 lenders from there too. I assume now that someone has already built out all kinds of tools to check all this stuff in a more efficient manner. I had not really planned to try and build a comprehensive platform, more just like an affiliate launch pad portal etc. Anyways, right now if the address matches one of the 20+ that are tagged, you'll see diamonds (💎💎) come up next to address at the top like this one: https://bankofarabia.eth.loan/

That should be a signal that the address belongs to someone doing significant borrowing or lending. As some of you have told me, I'll try not to get overly caught up in the tech of the tool and more focused on the monetization of .eth names etc as that is the differentiator here.