Market Discussions

My personal take is that you've over-engineered the solution. I'm not a fan of adding complexity for the sake of it - the idea of "tiers" lacks real utility.

That said; it's good to discuss and I can give it a better and more complete response when I have more time this week.

You clearly misinterpreted my meaning, I stated LC as a likeness only, in my explanation I showed how full transparency would work. As money is placed onto a contract, the average yield can be seen, while at the same time, the rating is also linked to yield acceptance into a chart.

Here's an example, say I wanted a loan for 500 million isk...I create a contract for 500 million isk and click "get quote." The server would see that I have no loans outstanding, but as a new player, my risk would be high....so they rate me as a C, charge me XY isk for the quote, and my contract is put on the market with a 1 month expiration. Thousands of people individually decide they want to offer some ISK as investing prospect and come across my contract, they look at the rating of C and check the charts to see that 10% is the going average at that rating....they all decide to put in 100k isk where some choose 9% (to try and undercut the competition in order to land the contract), while others choose 11% (in order to raise the average and hopefully not get pushed off the contract). During this allotment, people can see the current average on the contract, creating pressures in both directions as it goes. When the 500 million is reached, the expiration is immediately changed to 1 week...at which point people can still keep bidding, and I can at any point accept the contract at the rate listed and bidding stops.

The moment I accept, I receive the money along with the % loan in my wallet. Everyone who lost out on the bidding (by being too high in %) will be refunded. The % that I chose will alter the C rating chart to average my acceptance into it (so if I chose 9%, which is below the 10% currently, it may make it 9.99% average as an example).

The idea is that people will risk what they believe is true % value based on the rating given, so the chart will reflect that, and players will (in normal circumstance) respect those % give or take. If every person in the game pays back their loans properly, no matter what rating they have, then there would be intrinsically no risk....therefore people would just undercut each other to hold contracts, and the % would fall to the floor (which reflects the "no risk" sentiment). However, if say C rating people have a 10% chance of defaulting, then you can expect the % chart to average anywhere from 10% to 15% because the player-base would pressure towards that equilibrium of risk-versus-rewards.

Plus....the "notes" created (on the bid-side of the contract) could be an item itself, which can be listed on a debt market as a normal note market goes.