Guarantor value
At the heart of Goosie is the concept of Guarantor Value - a means of lending without margin call flawlessly 24x7
Extract from paper:
Imagine you run out of gas. Walking to the gas station you realise you have left your wallet in the car. Rather than go back you ask the station attendant if he would hold your phone to cover the cost of the gas until you return with your wallet. He agrees and fills a can. You get back to your car, drive the station, pay for the gas and pick up your phone.
What has just happened?
You received a loan of gas by providing a guarantee, in this case your phone. Importantly the phone is of no value to the station attendant because it is locked. The reason your phone works as a guarantee is that the attendant knows it is valuable to you and you want it back.
Extract from paper:
Imagine you run out of gas. Walking to the gas station you realise you have left your wallet in the car. Rather than go back you ask the station attendant if he would hold your phone to cover the cost of the gas until you return with your wallet. He agrees and fills a can. You get back to your car, drive the station, pay for the gas and pick up your phone.
What has just happened?
You received a loan of gas by providing a guarantee, in this case your phone. Importantly the phone is of no value to the station attendant because it is locked. The reason your phone works as a guarantee is that the attendant knows it is valuable to you and you want it back.