Scorum Pawn and Trade is an experiment to see if we can establish a barter-style trading system and a Pawnshop-like loan service for SCR.
Hi, this is Pete, and right now this is just a concept service that I would like to try out to help alleviate our problem of not currently being listed on an exchange.
I would love to have the technical ability to build a full exchange service for crypto but unfortunately, I do not have those skills. It is also beyond my means to hire a team of developers to bring such an application into existence. Instead, I decided to try and start a hybrid store that is part Pawnshop and part middleman for a barter trading market. There is no way to do this without a trust issue, for this to work the members who use this service will be required to trust me to complete the transactions. In other words, it will be similar to walking into a Pawnshop and leaving a valuable item for some quick cash, you trust the Pawn dealer to hold your valuable item for a period of time until you return and pay the loan off.
In case of barter trade, I would also be holding the product (SCR) until payment from the buyer has been made and confirmed.
I also hope to straight up buy and sell SCR at set prices. These prices would be set either weekly or daily according to how fast market prices were changing, but the prices you would see listed in the latest blog would be good until the next blog.
The only part of this new service that can be started immediately would be the barter service. The idea is that any two members can agree to a trade SCR utilizing any other trackable digital asset. Thus, any stablecoin, cryptocurrency, or NFT could be used in barter for a certain amount of SCR. Here is the basic flow of how this would work, more details will be in the next blog.
A trade proposal is made in the comment section of the latest barter blog.
-> Tommy wants to trade 0.01 ETH for 950 SCR
-> Jim replies that he would be willing to sell 900 SCR for that price
-> Tommy agrees to the trade
-> Jim sends 900 SCR to @spatstore and relies on the comment thread with his receiving ETH address.
-> Tommy replies with the sending ETH address and a transaction ID with a link to the transaction report.
-> Jim replies verifying receipt of the ETH
-> the. @spatstore sends 899 SCR to Tommy's Scorum account
-> 1 SCR is charged for the transaction service
If Jim never receives the transaction and Tommy has not shown the details of the transaction being sent and received at the address given by Jim, then the full 900 SCR is returned to Jim.
Will this work, or is there too much risk?
Please comment and let me know what you think of this effort and if it seems worthwhile. Also if you have any tips or hints to add I would love to hear them.
What do you think of the Pawn idea? I'm thinking that a 150% SCR value is staked for a one-month loan, 175% for a three-month loan, and 200% for a six-month loan. No interest would be charged, but if the loan was not paid off on the date specified then the SCR would be forfeited no matter what the current going rate for SCR is at the time.
My thought is that a person may need the money right away but they do not want to lose their SCR. If they take out a six-month loan and during that time SCR rockets in price, then they can pay the loan and get their SCR back. But if the price drops, or they give up on Scorum, or they can't raise the funds to pay the loan then they could just treat it like selling the SCR at half price.