Phase 1: Scale with Cashflow
Status: Planned Timeline: 2025-2026 Prerequisites: Phase 0 complete (product stable, initial data collected, user feedback incorporated)
What We're Building
Phase 1 scales beyond personal networks by adding cashflow verification to the social trust foundation from Phase 0.
Key additions:
Larger loans: $5,000 - $50,000+
Cashflow-based underwriting (not just social trust)
Liquidity pools for passive lending
Interest rates: 0-8% APR
Potential multi-platform expansion (PMF-dependent)
Goal: Prove the hybrid trust + cashflow model works at scale.
Why This Matters
Phase 0 proves social trust works, but can't serve larger needs or scale beyond personal networks. Phase 1 solves this:
Bigger loans: $5K-$50K+ for equipment, inventory, working capital—currently only served by predatory MCAs (20-50% APR)[54][55][56] or rejected entirely.
Passive capital: Lenders deposit into pools and earn yield without reviewing individual loans. Capital scales beyond personal networks.
Fair pricing: 8-12% APR with transparent interest, no hidden fees, and on-chain credit history.
How It Works
1. Cashflow Verification
Three income sources via OAuth: bank accounts (Plaid), merchant revenue (Square/Shopify), and on-chain wallet activity. Privacy-preserving—income ranges, not full transaction history.
2. Hybrid Risk Scoring
$100-$5K
50%
20%
30%
$5K-$25K
30%
40%
30%
$25K-$50K+
15%
50%
35%
Initial model weights—will be refined based on Phase 0 learnings and Phase 1 performance data.
Small loans among friends weight social trust higher. Large loans weight cashflow higher. Repayment history always matters.
3. Liquidity Pools
Lenders deposit into shared pools, borrowers draw based on risk scores, repayments flow back. Enables passive yield, 24/7 capital access, and market-sized liquidity. Pool mechanics designed based on Phase 0 learnings.
4. Platform Expansion
Starts on Farcaster, may expand to other platforms (Bluesky, Reddit, Twitter/X) based on PMF. Web enhancements: fiat onramps, social login, cross-platform sharing.
What We're Learning
Phase 1 helps us dial in:
How cashflow data predicts repayment for larger loans in our model
The optimal structure for liquidity pools to attract passive capital
How to balance social trust + cashflow for lending to strangers
Next: Phase 2
Adds wallet auto-deduction and merchant revenue auto-deduction—loans that repay themselves automatically.
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