You got your goals and priorities right then.
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Heya @Lisa1 Its not limited to local businesses, its just where we believe the most impact could be. Smaller businesses tend to have greater flexibility to try out new things like this as they’re looking to grow. In the case of large scale businesses I’m not sure how they will benefit equal or greater than what they’re already doing to be considered large scale. Access to traditional credit is usually relatively easier with scale/size.
That said, MintDeals could certainly be something for them to try though. It would be interesting to discover how best the platform could be/become of value to large businesses. While I can imagine some scenarios, reality can vary. The same risk measures mentioned in earlier posts would apply here too.
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I am thinking really good things and I think that as you are limiting the BTC allocation to 20%, you are reducing the platform risk that is coming with the volatility of BTC. Because I am thinking that even when there is price swings for BTC a big part of the collateral will still be stable and this is going to reduce forcing liquidations, I want to to know how do you planning to educate all of your users on the impact of BTC volatility on their credit limit and collateral value, thank you
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Welcome to hackatho season 7 and Thank you for sharing the MintDeals project.
Your concept of bridging the gap between traditional businesses and DeFi is innovative and has the potential to significantly impact local economies.
I am particularly interested in the potential impact of MintDeals on small and medium-sized enterprises.
I look forward to following your progress and exploring potential synergies.
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@ines_valerie Yep correct, the vision is that despite BTC price swings (if to the downside), it should/would not put the stablecoin capital and its borrows at risk. The goal is setting things up in such a way to keep MintDeals solvent and safe from liquidation. We’ll attempt to explain the impact and implications it as easy as possible via our docs. We may also include a diagram and potential scenarios to explain the flow of this mechanic.
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I have read what you have reply and the where you talk of diagram got my concern, are you going to do user testing just to make sure that your diagram explanation is clear and effective, thank you
When its created and shared, only then we’ll know the efficacy of it, then through feedback from viewers, we’ll know whether it requires further improvements to convey the concept and mechanics effectively. Its an evolving process.
Project update to all: We’ve been progressing gradually with the smart contracts R&D for MintDeals. Our focus so far has been on the Credit Facility (internally called the JLS Pipeline) and it’s core functionality, which involves integrating the key functions of JustLend and Sun-io. MintDeals can be viewed as having 2 core components, the Club membership + Deal system and the Credit Facility system.
This facility/pipeline enables basic sub account asset management, supplying, borrowing, repaying, swapping and yield claiming. The pipeline is completed(for now) and next we’ll begin focusing on the Credit Manager. This will serve as an mvp credit limit + scoring engine, evaluating a business’s creditworthiness based on metrics like deal NFT
redemptions to support gradually extending credit limits over time. Following this, we will then build and integrate with club memberships + deals, ensuring seamless interaction between the two core components for optimal functionality.
Appreciate the insightful questions thus far!
Thanks for the support! 
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I totally understand your point of view. Well, I wish you all the best.
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Considering the regulatory wave hovering around, how will you address regulatory concerns related to DeFi and blockchain technology in different jurisdictions where your project will be use?
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I would try to have a redesign and send it to you personally
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Reading through your project goal you made mention of defi-powered credit facility, what are the measures put in place to manage risk associated with offering credit through defi
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@Andreaxino - from our WIP litepaper (link in OP above):
@Chukseucharia we’re looking to support Dominica DID holders initially, as a requirement to create clubs. This means that users who complete L3 KYC via HTX will be able to access the credit facility through the clubs. Additionally, Tron’s core tokens are considered as legal tender in the Commonwealth of Dominica, which includes JustLend’s JST gov token. Our goal is not to cover/address every region’s regulatory parameters, that’s outside the scope of a hackathon setting - and we’re just trying to build something that could be useful/valuable first.
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I am all in for what you are explaining because I understand it, I am very happy about your progress with the credit facility and I am talking about the JLS pipeline, I am also understanding that you divide things into two important parts which is the club membership + deal system and credit facility and it is strong foundation for your platform things, please tell me how will your credit manager manage new deals and business and are you building the system with the hope that you will expand, thank you
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Please I have an important question that needs clarification.
- In what manner will MintDeals protect itself and local businesses from potential problems with its credit system.
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Great questions!
@ines_valerie The credit manager won’t be managing deals directly but rather using the redemption of deals as a metric to determine a simple onchain credit score. In DeFi, traditionally its standard to have token collateral-first approach when accessing loans. This presents a barrier and gap for many that aren’t into blockchain technology. So we came up with this novel approach with the hope that it could bridge the gap for some and be a valuable service to help build that collateral and onchain reputation.
When customers join a club and mints deals as NFTs, they can then go to that business to redeem it. This creates a sort of “proof of business activity”. The act of redemption is recorded onchain which can then be used as a metric to set/update a business’s credit score within the Credit Manager… The Credit Manager maintains and gradually builds up its BTC reserve through a portion of paid club memberships which would be used as the collateral to back small loans to these businesses. This credit score along with number of users and the value of collateral held in the credit manager would determine how much credit one has available to access. Once there’s ongoing usage we can expand it further.
@Okorie The credit score would be a simple way to build some onchain credibility and encourage legitimate users while the reserves increase value capacity to facilitate more credit provisioning. To help protect itself and businesses we’re keeping the max borrow thresholds lower than that of JustLend’s parameters to avoid liquidation events on the contract level account holding collaterals on JL.
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Thanks for the reply I don’t know how I skipped this while reading through.
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I have reading everything that you replied and it is very interesting, I am wondering if you plan to go cross platform and if this happen will you allow businesses to use their mintdeals score on different platforms, thank you
Reading thru your particular response here, I can sense an obvious test run prior to your entry in Hackathon Season 7, and this got me wondering;
What challenges do you anticipate in getting businesses to understand and trust your novel on-chain credit scoring method?
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@ines_valerie For now, there’s no immediate plans to go cross chain. However that does not prevent the simple score from being used by others if they choose to. It would just be a matter of them reading the onchain data from the contracts once they’re available.
@manfred_jr We do anticipate some challenges in educating businesses firstly about the use of blockchain and its benefits for this and then the reliability of the credit scoring. To address the second part, we’ll provide a transparent, straightforward explanation of our credit metrics and how it aims to ensure fair evaluations. For now, it’s going to be based on the deal redemption process as It’s a simple enough point to start with.
As for the first part, we’ll need maybe 2 or 3 early adopters to learn with and develop successful case studies to build trust and demonstrate the system’s effectiveness in enhancing credit management and risk reduction.
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Your reply is really insightful, I had fun reading, and I must confess that your strategy to use early adopters to create case studies is a strong move toward building credibility and trust in the platform.
As regarding the challenges you anticipate, I’d suggest selecting the right early adopters; choosing businesses with different profiles (e.g size, industry, and customer base) will give you diverse data and success stories to showcase and this diversity will make your case studies more relatable to a wider audience and demonstrate the flexibility of your platform.
I’ve a question bordering on this discussion;
What criteria will you use to select the early adopters? How do you plan to ensure they have a successful experience that can be turned into a compelling case study?