Leveraged Shopping: Get free stuff by paying with risk

Mike Elias
Jun 30, 2019 · 2 min read

Introducing LevShop. Well, not quite — but this can easily be built from existing ecosystem legos.

When you LevShop, you make a purchase using a loan against the future profits of a CDP:

1. User deposits ETH as collateral

2. User chooses leverage and receives USD credit for x% of collateral’s value

3. User makes purchases and manages the outstanding CDP

If your CDP hits the price target, your position is sold, the profits cover your purchase, and 100% of your collateral is returned. Thus, your purchase is effectively free. (And if your position is liquidated, your collateral is sold, and you effectively pay much more for your purchase.) By adding collateral, you can increase the likelihood that your purchases will be free (and increase the amount you pay if you’re wrong).

Who can help build this:

  • Web3 wallet providers (Portis.io, Metamask)
  • Decentralized margin platforms (dydx, Fulcrum, Opyn)
  • Tokencard (or anyone who can provide users with a virtual debit card number pre-loaded with your position profits)

User Dashboard

LevShoppers could have a dashboard showing past purchases and what price targets are needed to achieve full coverage.

Merchant slider

Merchants can give users the ability to “pay using risk” in various combinations. A user can choose how much ETH to deposit as collateral, how high to leverage it, and make the purchase with future profits (or liquidated collateral).

Note: All numbers are made up.

Conclusion

  • Could LevShop be combined with PoolTogether to purchase things for communities or create opt-in tax schemes?
  • Could prediction algorithms recommend what positions to enter, and the best “cash-up-front to risk” ratio?

I’ll donate 1 ETH

I’ve got my hands full with Global Liquidity and Idea Markets, so if you think this is cool and should exist, please create a Gitcoin bounty and I’ll donate 1 ETH to get things rolling.

Mike Elias

Written by

Business Development at globalliquidity.io / Founder at ideamarkets.org

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