https://etherscan.io/tx/0xee7586c54051a918832970f16db34c256bf27b85691fe1463ab79af88ac8d2e2
Coffee Break Thought:
In the whitepaper and in previous messages we have alluded to the ways in which Initial Liquidity Loans could be used to fund off-chain use cases.
The algebra allows this - a person who wants more money than they have can come to Xchange, give us their money and make a larger market for their token than they could afford themselves.
But the technology takes it further.
Xchange will be external-lending-pool-ready at launch. What does this mean and why does this REALLY enable a much wider market than is currently able to take advantage of DeFi?
A private lender would be able to build a very lightweight, permissionless, interoperating layer with the Lending Pool contract.
This private lender could then offer a loan facility, secured and enforced both on chain but also backed by off-chain contracts and due diligence.
Initial Liquidity Loans collect an origination fee up front, allowing the private lender to secure immediate return on their capital.
But in addition, they could use off-chain legal process to ensure timely and full payment of premiums and payback of the loan without need for liquidation.
This ability to use the reliability and guarantees of on-chain smart contracts and off-chain legal process will help the DeFi escape the zero-sum ponzi and invite new capital on-chain.
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And do not forget: a portion of the origination fee and loan premiums will flow back into the X7 Finance ecosystem, growing the size of the DeFi native lending pool, the X7D minting capacity (through locked liquidity within the X7100 series tokens), and the overall liquidity in X7R and X7DAO tokens.
Trust the code. Long Live DeFi baby!
