One Daijo aims to create the future of inclusive finance. Find out how they plan to do that today in our review.
What Is One Daijo?
One Daijo, found online at OneDaijo.com, is a peer-to-peer lending platform that aims to create a better, more inclusive financial future for the world.
Like other peer-to-peer lending platforms, One Daijo aims to solve a big problem in today’s lending industry: billions of people worldwide cannot access loans due to lack of credit or identity. One Daijo’s goal is to help underserved individuals establish credit identities that can be used to access various financial services. Those financial services can be offered by One Daijo or by other financial institutions.
The first financial service offered by One Daijo is a peer-to-peer lending platform built on Ethereum. That platform welcomes borrowers who can’t normally obtain affordable credit. These borrowers can build credit through the One Daijo platform, which means they can access affordable loans more quickly, cheaply, and transparently.
How Does One Daijo Work?
One Daijo connects borrowers and lenders using blockchain technology. These participants can interact with each other without the need for a trusted intermediary.
Users maintain a user profile, and their user profile builds credit over time. Smart contracts on the Ethereum blockchain are used to define the terms of the loan, including repayment behavior.
All users interact with the Daijo platform through the Daijo mobile app. You can use the app to browse a selection of loan offers. You can view the terms of the loan, the interest rate, and the lender or borrower rating, for example. You can securely lend money through the platform to earn interest, or borrow money through the platform to access fast capital.
Users have a universal credit identity they can view through the Daijo app. That identity can be transferred across all platforms in the One Daijo ecosystem.
The entire ecosystem requires the use of QIN tokens, which play a key role in how users build and access credit through the One Daijo ecosystem.
How Do QIN Tokens Work?
The Daijo lending platform revolves around the use of QIN tokens. these tokens are used as collateral for loans. They’re also used as participation tokens in the ecosystem:
QIN tokens can be used for multiple parts of the One Daijo ecosystem. It’s a multi-purpose token. Borrowers can use it to request loans and track and grow their borrowing power. External risk assessors can use it to compete for the right to evaluate loans and grow their reputation.
QIN posted by borrowers and ERAs acts as collateral for the loan contracts. Borrowers can also post additional QIN tokens to increase the chance of obtaining lower interest rates. QIN as collateral promotes accountability and mitigates losses sustained by lenders in case of loan default.
The One Daijo ecosystem replaces the idea of a conventional credit history. Instead of a credit history, you have a history of QIN transactions, as recorded on the blockchain. The movement of QIN tokens into and out of a borrower’s wallet is publicly recorded on the blockchain. With QIN tokens, borrowers build their immutable, borderless credit history. That credit history can be applied across the One Daijo ecosystem of apps.
Borrowers are rewarded with QIN tokens every time they repay a loan. This increases their borrowing power. the greater number of QIN tokens a borrower holds, the larger the loan principal the borrower can request.
The name “QIN” token, by the way, is a reference to the Qin dynasty of Chia (221 to 206 BCE). As the Daijo website explains, this dynasty established the first Chinese empire, including China’s first unified currency – the ban liang coin. “The unification of currency facilitated trades across the empire and supported economic growth. One Daijo’s QIN tokens will similarly connect people around the world, providing credit to those who need it and contributing to local and global economic development.”
“QIN” is pronounced like the English word “chin”.
Future One Daijo Products And Services
One Daijo has listed a number of future products and services that may be available through its ecosystem. Right now, they have the P2P lending platform we mentioned above. However, the website mentions three products and platforms that could be launched in the future:
Standalone Ethereum Wallet App:
Daijo will release a wallet app with full Ethereum wallet functionality. You’ll be able to use it for local secure storage, to handle ETH and ERC20 tokens, interact with smart contracts, conduct ENS name transactions, and more. You’ll also be able to use the wallet to complete transactions (by username) to other users in the Daijo network.
Common Credit Protocol:
Common credit protocol is a common convention for the formatting and sharing of credit data so that borrowers can quickly export credit data to access other services and credit providers can use the shared data to inform their credit scoring methods.
The QIN Card:
Daijo will release a debit card that provides direct access to your Daijo wallet. That means you can spend your QIN wallet balances at brick and mortar retailers or online.
Who’s Behind Daijo?
Daijo is led by Cynthia Yoon (Co-Founder and COO) and Richard Yoon (Co-Founder and CEO). Richard has 5+ years of consumer software product management and financial services experience, and he previously served as product manager at a tech startup, a quant trader at Goldman Sachs, and an investment banker at Bank of America Merrill Lynch. Cynthia, meanwhile, has 7+ years of social science research and management consulting.
The company is officially formed as One Daijo Ltd., a not-for-profit entity incorporated in Singapore in 2017.
One Daijo Conclusion
One Daijo is an ecosystem of financial services that aim to collectively create the future of inclusive finance. Today’s financial services are well-developed, but they exclude billions of people worldwide. People around the world struggle to build credit or access lending services. One Daijo’s ecosystem allows users to build credit through the use of QIN tokens – regardless of their current credit history.
The first product available through the ecosystem is an Ethereum-based peer-to-peer lending platform. In the future, the team plans to launch a wallet, a debit card, and more. You’ll be able to maintain the same Daijo credit profile across the entire One Daijo ecosystem.
To learn more about One Daijo, visit online today at OneDaijo.com.