• March 2018

  • <One Daijo> Global P2P Lending - QIN Token ICO

One Daijo Logo

Hello Stellar community! This is One Daijo’s second submission for this round of SBC. Our first submission was our P2P lending app on which our QIN tokens will be used. We plan to do our general solicitation QIN token pre-sale in Q2 2018, and our target fundraising amount is $5M.

QIN Icon

QIN Tokens

QIN tokens are foremost participation tokens for the One Daijo lending platform. Borrowers, lenders, and external risk assessors (ERAs) use the tokens to consume services offered on the lending platform. QIN tokens also play a critical role in facilitating One Daijo’s unique QIN reward and penalty system which has been designed to incentivize good behaviors from the participants and therefore support a healthy growth of our lending ecosystem. QIN tokens earned via successful repayment help borrowers build their credit history. The QIN tokens that are posted by the borrower to obtain the loan and QIN tokens posted by ERAs to stipulate the loan become collateral for the lender.

QIN does not exist to transfer funds between borrowers and lenders as we believe that it’s better to use more liquid base currency such as XLM for that purpose.

QIN Token Representations
Here’s a high level view of what the utility of the QIN tokens looks like from each player’s perspective:

Borrower

  • Ticket to play: To apply for a loan, the borrower must post QIN tokens. QIN tokens are not required for the first loan which will have a set principal amount. (For the Philippines, the first loan for all borrowers is planned to be around USD $40.)
  • Reward: Each time the borrower successfully repays the loan, the borrower is rewarded a number of QIN tokens as promised in the loan offer.
  • Borrowing power: Larger loan principals will likely require larger amount of QIN tokens. As the borrower accumulates QIN through successful repayment, the borrower’s borrowing power will increase.
  • Credit history: QIN tokens earned from successful loan repayment is recorded, helping the borrower build credit history.

Lender

  • Ticket to play: Lenders can pay the lending platform service fee in QIN.
  • Collateral: When borrowers default, lenders receive QIN posted by the borrower and ERA as collateral.

External Risk Assessor (ERA)

  • Ticket to play: When the ERA’s loan terms get selected by the borrower, the ERA posts QIN tokens, a portion of which will go to the borrower as reward and the rest that will return to the ERA if the borrower successfully repays. In case of default, the QIN posted by ERA will go to the lender. (When the borrower successfully repays, the ERA who wrote the loan terms for the borrower will get rewarded in Lumens.)

For a deeper dive into QIN token mechanism, please reference our blog post.
An interactive demo of our prototype can be accessed here.

5 days later

How was your presale or ico going? On Stellar? Where are you guys located.

    savebattgo Thank you for your questions! We are currently carrying out only private sales. General solicitation pre-sale is scheduled for late Q2. We will be doing the sale on Stellar, and we are incorporated in Singapore ? Please let us know should you have any further questions! You can also email us directly at info@onedaijo.com

        OneDaijo Thanks, we are a inclusive financing organization with teams worldwide including Singapore. We seek a technical partnership to scale in the markets we are in, Majority of our users are now in East Africa.

            Seems like a cool idea. I noticed the blog reference Eth.

            It seems the risk is high and rewards low for investors. Is there data on what the average return will be for investors? How many QIN are in circulation and will it be listed on SDEX and/or other exchanges?

            Why not lend the money directly instead of using an anchor?

            How do you pay back QIN?

              BlockMaster
              Thank you for your great questions, and we are glad that you think that this seems like a cool idea ?

              Re blog reference on ETH - first of all, thank you for checking out our blog! So, we did start out with Ethereum. However, after we learned about Stellar and after comparing Ethereum and Stellar based on our business and technical requirements, we determined that Stellar was the better chain for our product. We’ll be presenting our product and the framework that we used to choose the right chain for our product at the 2018 International Tech4Dev Conference ?

              From talking to experts in the field and consulting our advisors with experiences in P2P lending, we learned that initial default rates will be high but these rates can be significantly reduced in a short period. For example, one of our advisors worked for a publicly traded P2P lending company that was able to lower initial default rates of ~40% to 2% annual in 1-2 years by training the risk models using traditional and non-traditional data. To help minimize risk for our lenders, One Daijo will initially play the role of the lender. Once we’ve lowered the expected default rate, we’ll then onboard lenders.

              We’ve calculated expected value of ROI for lenders for each default rate on the One Daijo lending platform. Just to give a few numbers -- at 2% default rate, lender’s expected annualized ROI is 102.91%; at 5% default rate, lender’s expected annualized ROI is 40.68%.🖩

              Currently, we have not released any QIN. We hope to be listed on SDEX after an ICO and on other exchanges as well to provide additional liquidity.

              Our goal is to create a global P2P lending network. ? While our target borrowers are in developing countries, our target lenders are mostly in developed countries. The Stellar chain and anchors help us do the cross-border transfers and we love working with great Stellar anchors whose relationships with local partners we can leverage to deliver a better experience for our borrowers.

              Borrowers will not be paying back in QIN but will pay back in their fiat currency. They will, however, have options to redeem QIN.