What would you do if you were the PM of a cryptocurrency exchange that wants to start offering lending services?

The lenders are the ones who want to lend cryptos, stablecoins or cash and earn passive income from their crypto investments.
The crypto lending platforms are the third-party platforms that connect borrowers and lenders and take care of these transactions. These can be autonomous, decentralised, or centralised platforms (a group of people or companies operating the platform).
The borrowers want funds for varied purposes and should use crypto or fiat assets as collateral to get funding.

The loan taker put some collateral before borrowing any crypto. Flash loans can also be used without collateral. On the other side of the loan, you may have a smart contract that mints stablecoins or a platform lending out funds from another user. Lenders add their crypto to a pool that manages the whole process and forwards them a cut of the interest.

(Source: https://academy.binance.com/en/articles/what-is-crypto-lending-and-how-does-it-work)

Binance’s mission: To provide the core infrastructure services for organizing the world ’s crypto.

Goal: Launching lending services

Strategy to achieve Goal:

I will focus on millennials in India because they are open to the technologies and India has a large trading market.

Three-phase implementation plan:

Pre-launch: Steps need to be taken before starting lending services

· What is the mechanism through which crypto lending services will be started?

· Which cryptocurrency will the lending features will support such as Bitcoin, Ethereum, Tether etc.?

· How much return user should get for different type of Crypto token?

· Will the lending services offer open and fixed-term lending such as 7-day, 30-day,60-day etc. and how much interest will be provided for each time period?

· On which platform, web or mobile app or both, lending services will be started?

Launch:

· How do we ensure the confidentiality of lender and borrower?

· Technological challenges: As different crypto followed different process such as bitcoin follows proof of work and Ethereum follows proof of stake?

· Regulations: is there anything with regulation that will stop lending services?

Post- launch:

· How much is the lending-services activity? Will it vary among different cryptocurrency as interest rate and return might vary?

· Any technical glitches? E.g., are lending services taking longer to settle/ execute?

· Any increase in number of customer service complaints?

The process of Starting lending services:

1. We will set an example for regulators and show that how it takes lending services seriously by maintaining confidentiality of borrower and lender.

2. Identify major blockers like Regulatory analysis: in India, after informal guidance from the Reserve Bank of India, led banks to withdraw services from Crypto exchanges. We will see all these.

3. Analysis of technological complexity: How much time and effort will be needed for lending services? As different crypto follows different process for exchange.

4. Business analysis of the person applying for lending services: is the person following legitimate rule of lending services so that we can create healthy dynamics between lender and borrower?

Summary:

We have been tasked to launch cryptocurrency lending services. After narrowing down the scope, we defined the goal to launch lending services for millennials in India. Then we describe three-phase implementation plan: pre-launch, launch and post-launch. In pre-launch, we specified the mechanism, cryptocurrencies used, interest on cryptocurrencies, time-period and platforms. In Launch period, we thought the confidentially of lender and borrower, technological challenges and Regulatory. In Post-launching, we measured the metrics lending-services user, how it various among cryptocurrency, technical glitches, number of customer service complaints. After we mentioned the process of starting lending services.