Loan shark: a non custodial, bitcoin only borrow and loan tool

More here on my github: github.com/supertestnet/loan-...
Try it out on testnet: supertestnet.github.io/loan-s...
Or mainnet, if you're reckless and want to lose your real money: supertestnet.github.io/loan-s...
Loan shark offers fully collateralized bitcoin only loans without custodians, escrows, or margin calls
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[@ConorChepenik]

Very based & promising software. Nice to see some actual DeFi😂🤙

[@OrangeHat21]

Very interesting work!

[@quovadis5575]

👍

[@jsg9575]

The problem for the use case in your comic as a borrower is that if you send your Bitcion from a self hosted wallet it's considered a taxable event.

[@highlevelbitcoin]

I believe the IRS clarified that it's not a taxable event if you send it to yourself: "Q38. Will I have to recognize income, gain, or loss if I own multiple digital wallets, accounts, or addresses capable of holding virtual currency and transfer my virtual currency from one to another? A38. No. If you transfer virtual currency from a wallet, address, or account belonging to you, to another wallet, address, or account that also belongs to you, then the transfer is a non-taxable event, even if you receive an information return from an exchange or platform as a result of the transfer." Source: www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions

[@sagars209]

why would i post 2000 as collateral to get a loan of 1000?

[@jsg9575]

if you need to spend a large amount of bitcoin without triggering a taxable event

[@gleleylo]

The only reason it is needed is to avoid capital gains tax. I suppose it will be "fixed" by IRS sooner or later. On the other side, the same principle could be used to lend/borrow between ordinals and bitcoins - this, I think, would be much more useful globally.

[@perc-ai]

yep in places like the PH we need protocols like this as govt can be corrupt and sometimes wages are delayed about a month....

[@gleleylo]

@@perc-ai I think you didn't get the idea - to take a loan you previously need to provide a collateral that is actually bigger than the loan. All this protocol gives you is an option to swap "old" UTXOs (for which IRS would like to tax you) to "new" UTXOs for which you will not be taxed, and swap them back later. I think it should be named "UTXO loan/borrowing tool" to be more clear.

[@JK-dx7ex]

Sats = Sats 👈🏻 this is the_way

[@AlexanderNuttall]

The age of sats is the key. Ye Old UTXO verses a new UTXO. Complicated but for financial engineers this means that there is NO REASON FOR USD.