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RE: Token Staking can be used to Promote Positive Interactions.
There are already SALT and CEL that operate in the same sector "Banking on the Blockchain". I've done a quick search on Vena but I don't understand how they can differentiate themselves from other projects. Am I missing a bigger picture ?
The financial sector is too big for one player.
Each project has its own set of strategic partners and is therefore likely to expand in varying market sectors.
Beyond that, there are major differences.
Staking VENA is not enough to be a loan issuer; you'd have to show knowledge of the loan market to ensure you are qualified to proceed as a loan issuer. This should play a key role in moving into territories that require strong regulatory approvals.
Regulatory authorities are not Ok with anyone issuing loans. While the platform will let anyone access loans, issuers must show that they are qualified. This leaves the door open to anyone who is willing to learn about loans and the laws that twine with them, a requirement that regulatory authorities are expectedly going to set.
Got it ! The key difference is that issuers have to be sort of "accredited" which will make things easier in the regulatory side.
Thaanks !!
That is the difference on the lending side.
The protocol creates smart contracts that support general OTC trades and escrows as-well.