Earning interest on Enigma


#1

In a previous post I wrote that my Enigma wallet does not earn interest. Then it struck me that maybe it could.
If a Master Node requires 10000 Eng (speculating) And I and 100 dear close friends each have 100 Eng, couldn’t we pool our Eng to get a node. It sounds simple but of course it’s not really a wallet then and people couldn’t withdraw their Eng without risking the Node. But it seems like it could be set up in a way that works.
It would be like an Eng Bank. You would deposit your Eng along with 2000 others. The bank would run a node or nodes to provide interest on the accounts. The EngBank would have liquidity requirements like minimum deposits must be at least 5 times node stake. Bank could purchase insurance or bond against liquidity shortfall. I wonder if FDIC applies. :slight_smile:
Channel
P.S. I’m not interested in building this so feel free. Also please share your thoughts.


#2

Sorry.
It appears I’m having a conversation with myself. But it just crossed my mind that the Bank could store other currencies too. It could even open nodes for those currencies if funds were sufficient.

Now for a BIG question.
If it’s a bank analog, users would have account numbers, account names, passwords and other account verification things. They would deposit their funds in the bank. That means emptying their wallets and sending the coins to the banks account. This whole idea seems like it would be anathema to crypto-lovers because of the centralization element and because of the fact that they have an account with personally identifyable information. But Enigma makes both of these issues go away. Your account information can be hidden in a secret contract, and Enigma is designed to be decentralized. It works in my head. What do you think?


#3

This is delegated staking - similar to how you can stake in a Tezos Baker or a Livepeer Transcoder. This is helpful to lower the barrier to stake. This usually requires an individual to setup the worker node (both infrastructure and the min threshold if there’s one). We are considering ways in which we can apply similar staking models.

Regarding the bank analogy, this issue can be addressed by creating a proxy contract that enables one to remain in custody of her staked assets even though there’s a facilitating party