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Use Cases

Credit is simply giving someone a dollar and expecting them to return it - be it a lifeline, an open line of credit, or an investment bridge. Union functions as a primitive so that anyone can lend, borrow, or build credit on-chain.
Union is more a primitive than a product.
There are many types of credit relationships that could be defined in Union:
  • 1 → 1: This is a lot of overhead for the use case of a single person lending a friend $20. (Passive Nature: When you borrow from a friend)
  • Many → 1: Groups working together: 3 people vouching $100 for a 4th, gives the 4th access to $300.
  • 1 → Many: a single Underwriter vouching for a param, a DAO providing it’s members a credit line
  • Many -> Many: All of the above contributing

What does Union do that wasn’t previously possible?

  1. 1.
    Creates efficiency. 1 Dai can be vouching for multiple accounts and contracts until it's actively borrowed.
  2. 2.
    Brings real world trust on-chain while retaining pseudonymity.
  3. 3.
    A whole market of new businesses in between 0%-150% LTV products.
  4. 4.
    Smart Contracts/DAOs get with credit lines.
  5. 5.
    Invest by extending credit.
  6. 6.
    There’s additional UX mechanisms and experiences you can create to incentivize vouching for different behaviors ie vouch for charity (microfinance), invest in a dao by vouching (instead of a convertible note), etc