P2P Lending / NFT Lending Forum

Quote from: sean3.eth on September 18, 2023, 08:49:28 PMThe names are only owned for the purpose of selling, not for long term investing or holding or community. It's not like a Bored Ape where you can go all around town and be like "look at me I'm in the Bored Ape Yacht Club."  If they own grail.eth, their only goal is to get rid of it and sell it.

This is a sobering thesis, that "the names are only owned for the purpose of selling" but the point is understood. If the owners only own it to sell it, and there's no special club to be part of like BAYC, then there is nothing to miss out on by selling. You can still own dasfsdfsa8020233.eth and be just as much a part of ENS as owning grail.eth.

BUT, and I'm just guessing here, is that your commentary is a critique of the average borrower's intent, not what you think the underlying value of the collateral is. If they only own to sell and are not interested in the utility of the underlying asset, then you will have "borrowers" who will undervalue good ones because they absolutely do not want to be stuck with them.

So everyone's seen how many .eth loans I've had go bad and I've heard all kinds of suggestions and criticisms about my approach, namely:

1. I loaned against bad names that nobody wants
2. The loan amounts were too small
3. I should only lend against grails or digits or something "liquid"

So on the one hand I totally agree that loans of like .05 eth are relatively pointless, at least on an individual level because what is someone seriously going to do with like $80?

A company that was lending against .coms believed the smallest loan size that made sense was $5,000 which I get when the borrower is a business borrower. 

But I don't think that increasing the loan size itself increases the seriousness of the borrower. What I'm seeing so far is that "borrowers" see themselves only as sellers, which is why there's 7,000 names listed on Teller right now. They think it's an alternative selling platform to ENS Vision.

If anything, people are showing that they're willing to walk away from names for as little as $80. The names are only owned for the purpose of selling, not for long term investing or holding or community. It's not like a Bored Ape where you can go all around town and be like "look at me I'm in the Bored Ape Yacht Club."  If they own grail.eth, their only goal is to get rid of it and sell it.

Update from 3DNS:

"We have our product ready to launch and will be pushing the beta live next Wednesday. We will announce our rebate program on Wednesday as well."

If I reach out to them, I'll let you know. Also, not sure if you saw my post on X about it but I shared a link to how the first ever domain name loan supposedly happened. It was for software.com in 2005 and led to the founding of Domain Capital. See: https://x.com/amiller325gd/status/1558798150579757057?s=20

Can you ask them if they are still doing these types of loans? FWIW, I found this from 2015.


Lendvo.com looks at the credit history of the borrower, not just the value of the domain(s) which allows them to lend on more than just the domain value but also requires a credit check that meets their underwriting requirements.

DomainCapital.com generally want longer term deals of 36 months up to 60 months, many times with no prepayment allowed.

Lendvo.com lends for a a maximum term of 18 months and will engage in very short term loans of just 90 days.

Lendvo.com lending limits are lower than DomainCapital.com.

Lendvo will loan a maximum of $100,000 per domain name but that will probably suit the vast majority of domainers.

Also all loans made by Lendvo are recourse loans.

Lendvo will loan up to 70% of the purchase transaction for a domain name, or portfolio I believe Domain Capital typically requires 40% down from the buy of a domain.

The minimum loan size was $5,000

Quote from: sean3.eth on September 15, 2023, 07:40:14 PMOk.... well this is weird, I know Lendvo! I worked with them a little bit through deBanked. Totally forgot they did domain name loans. I should probably reach out to them. I can't believe how small a world it is.

Oh. That's excellent! If I DM you my email, can you make an intro for me? If not, that's ok. Any chance you know anyone at Domain Capital as well?

Ok.... well this is weird, I know Lendvo! I worked with them a little bit through deBanked. Totally forgot they did domain name loans. I should probably reach out to them. I can't believe how small a world it is.

Quote from: KHY Lending on September 15, 2023, 03:56:48 PMSeveral lenders that were doing this are now seemingly out of business.

ain't that the truth. The irony is that so many of them don't even own their own domain name anymore and it goes to a page not found error! Most common name I see is a lender named Lendvo whose website stopped working.

https://domainnamewire.com/2016/01/27/new-company-provides-domain-name-financing/

Used the internet archives to see what they were all about. It's close to what I imagined would exist.

I second this. A month or two back I went down a rabbit hole of trying to learn more about this myself. Several lenders that were doing this are now seemingly out of business. A good thread from 4 years ago sums up the landscape well https://www.namepros.com/threads/getting-a-loan-on-your-domain-names-help.1138630/

The cliff notes is that people said no financial institution would do it, it would be very risky, etc. That was from 2019 and because of the technology the poster was talking about finding an escrow service to hold the domain, paying via paypal, finding an institution and the like. Such a setup sounded woefully inefficient for what he was seeking which was a $2-$4k loan over 3 months. Either it's a market that's primed for something like blockchain to exist or has been said on this forum before, it is a really bad idea from the start and that is why nobody is doing it. If you find something new, please share.

Can anyone tell me where somebody would get a domain name loan outside of crypto and blockchain? Company names would help. You can dm if necessary. Thanks in advance.