New Token-Based Business Models Gain Steam

Hi defiers! This is what’s going on in decentralized finance:

  • New business model for dapps introduced as ERC-2212

  • Proposal to standardize Pooled DAI business model

  • Capital One data breach highlights value of DeFi


New DeFi-Based Business Model Has Legs

The get-stuff-“free” business model (which I described here), is gaining steam. Paul Berg from Sablier recently formalized his idea into ERC-2212: Earning Interest Stakes. He proposes users stake tokens in exchange for a product or a service, while businesses/creators earn interest on the pooled stakes through lending protocols such as Compound Finance. This would be a new new way to monetise decentralised apps.

“While most web3 business models rely on paying a percentage fee on transfers, or commiting to a monthly subscription, we aim to flip the model on its head,” he wrote. “Users are their own banks now, so, instead of charging them, we make them stake tokens that can be claimed back, in full, at any point in time. We view this as a win-win-win scenario for users, dapp creators and lending protocols.”

Standard for Pooled Tokens Model

There’s a similar business model that’s getting standardized. Betoken co-founder Zefram Lou last week introduced Pooled cDAI, an ERC20 token template allowing people to pool DAI together, lock the DAI into Compound Finance, and send the interests to a beneficiary. Users putting DAI into the pool receives Pooled cDAI (pcDAI), an ERC20 token which is 1-for-1 redeemable for DAI at any time. The no-loss lottery started by Pooled Together spearheaded the general idea.

This is Why DeFi

A data breach at Capital One affected approximately 100 million individuals in the United States and approximately 6 million in Canada. About 140,000 Social Security numbers and 80,000 bank account numbers, were stolen, as well as some customers’ credit scores, payment histories and credit limits. The hacker accessed data the bank had stored on Amazon’s cloud service, the Wall Street Journal reported. Decentralized finance platforms don’t store sensitive user data like social security numbers, and this is why that matters.