Lending and borrowing have been around for 4,000 years ever since Mesopotamians invented the first 'payday' loans. Back then, farmers would borrow seeds & livestock and repay with plants & calves. Today, the concept of lending remains an essential cog in societal finances. However, the execution and structure could not be any more different, lending is now monopolised by a select few financial institutions. They control the keys on who to borrow to, and how much to charge. We live by their rules.
When Satoshi Nakamoto created Bitcoin, whether he was fully aware of it or not, his creation would give birth to a new decentralised era of finance. An era where lending and borrowing is open to everybody, a utopian free market. Today, the crypto lending market is primarily made up of over-collateralised loans, where borrowers lock up crypto as collateral to take a loan of lesser value; a necessary criterion due to the anonymous world of blockchain. This is capital inefficient, defeating the primary purpose of borrowing.
This dominant DeFi lending practice only utilizes 1 of the 5 Cs in credit evaluation - Collateral. For the DeFi market to break-out and mature, the natural evolution needs to employ the remaining 4 Cs of credit - Character, Capacity, Conditions & Capital.
Pocketwo incorporates credit scoring into crypto borrowing. By combining elements of traditional finance with crypto, we cut through borders so you have access to more liquidity, we cut down on traditional banking red tape so you can access funds fast, and you don't have to put up collateral for it.
Life is both exciting and unpredictable. Inadvertently, society will need a way to smoothen their finances during rough patches. Pocketwo is here to provide when that time comes, so you can continue to fill your lives with experiences and memories. We understand because we have been in these situations ourselves.