Reason 1: Increased value of cryptocurrency by developing a use for cryptocurrency

If you're a developer in this space of cryptocurrencies, you probably have some cryptocurrencies and you probably enjoy watching them rise in value.

The first implementation of the Decentralized Autonomous Financial Network (DAFNe) Protocol will be a Decentralized Lending Network. This lending network will create very attractive financial products (loans) for borrowers. Imagine a service where a borrower can put their own terms on the loan - interest rate, repayment period.

In order to get into this borrowing system, a borrower has to make an initial deposit - they have to purchase bitcoins. Thus, decreasing the supply of bitcoin, potentially causing their value to rise.

When the loan is made, the borrower will probably convert their loaned bitcoin to fiat, increasing the supply of bitcoin, putting downward pressure on bitcoin value.

However, over the entire repayment period of the loan, their will be a constant demand for bitcoins, because the borrower has to repay the loan in bitcoin.

So, as a lender, say you had a total of 100 BTC just sitting there, and your hoping that someday the value will soar again to its heights of 2013. Instead of just waiting for it to happen, you could loan out 10 of these bitcoins, and yes - while you might potentially lose some value in the 10 BTC you loaned out, the other 90 in your coffers may offset that.

Reason 2: Move towards complete decentralization of our financial systems

Lending is an important function of money, and if we can decentralize lending, then we remove the influence of small parties in the system. With DAFNe and cryptocurrencies, we can avoid the creation of complicated financial instruments. We keep lending simple in order to strengthen the financial system. People simply borrow tiny amounts of money from thousands of people, which is all possible with the bitcoin network. We just need a second network to arrange these transactions.