A loan you never have to repay?!?! – Gerry Migwi

A loan you never have to repay?!?! – Gerry Migwi

For the past year, my team and I at Kyama.co have been working tirelessly to bring a new breed of decentralized finance technology to life. We came together in the common belief that it is time to reinvent the wheel when it comes to handling multi-user finances.

Kyama is a decentralized platform built on the Ethereum blockchain where members can access low-risk unsecured loans while earning interest on savings. It is targeted on being an investment platform with a low barrier to entry and a relatively high return on investment as compared to traditional banking interest rates.

To keep things simple, let me break down our pitch a little further.

When it comes to lending, three main problems are currently being faced in the traditional finance industry.

1. Personal loans tend to have high interest rates.
2. The risk of defaulting is high and extremely costly.
3. Highly valuable collateral is required for substantial loan amounts to be granted to borrowers.

As such, Kyama is developed to resemble a Pooled Investment and Shares organization where members can invest and gain ownership of a percentage of the total investment or income. Members are then able to autonomously act as creditors to other users of the platform who borrow a percentage of the total investment pending repayment of the principal amount with interest. The platform, being decentralized, has allowed it to be structured in a manner that borrowers have an indefinite loan repayment period while posing minimal risk to the creditor’s investment.

What this means is that it is now possible for borrowers to take out loans and never have to pay them back!

But how will you earn interest if users never pay back their loans?

Simple. Unlike in traditional banking, once you take out a loan on Kyama, the corresponding share capital is recorded and continuously monitored. Once more people join the platform and repay their loans, the share capital that was recorded gains value therefore being worth so much more than the initial principal amount borrowed. At this point, were the user to repay the loan in full, they would receive the full share capital value in the form of Ether.

Think of it as though your bank gave you the full value of investing your hard-earned money at the end of the year!

Can you really trust us?

Built on the Ethereum blockchain, all Kyama data is public, transparent, and immutable. No single entity, including the Kyama team, has admin access to user funds, therefore a fully trustless system.

The Kyama project is fully open-source and vows never to collect personal user data.

Published at Sun, 19 Jan 2020 18:50:43 +0000

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