Sorry for the long delay. The latest news is that I have uploaded the android version of easybid. It is still in beta and the data is not accurate as I do not have the time to update. You can download a copy at

You will need to install it on your mobile device. 

You can go to

and there will be tutorials. 

Also the auction is still being coded but a test version is ready at

When it is ready, I will be hosting it on another server/domain –





Problems that EVB is designed to address LIBOR Scandal. Most of us have heard of the above if not then go to

The latest development is NYSE EuroNext to take over administration of Libor ( however this still lacks transparency as the entire dealings are done (or perceived to be done) between banks and it does not overcome the problem which is that this are fiction. My recommendation is to have real auction system to determine the rates (actual deals) that is displayed over the net like that found in US PATENT 7,376,612. A demo coded in 2000 is found at and a simplify version where users can auction off their deposits at . Some functions may not work as I am trying to revamp the system to keep up with new software.

Problem with the Banking system.

The current banking system is one of an intermediary which collects funds and lend them out to clients (borrowers) under its own guidelines and control which may be self-conflicting at times. In short, the profitability is one of a percentage of margin between deposit rates and lending rates which usually favors the intermediary. So the question is how hard is it to be the intermediary. For a starter, one needs to have a banking licence and some equity to back. However, the bulk of the funds are from depositors which are on-lend to borrowers. A bank is allowed to lend out 17X of what they actually forked in as equity. In some cases it can even go up to 25X. The alternative is for depositors to lend directly to borrowers removing the functions of the intermediary, particularly in the short-term markets, ie less than 1 year like credit cards facilities or LC etc. What about the risks of borrowers and collateral etc ? Isn’t the banks’ specialties are to assess those risk and price them and to handle all the difficulties with a bad loan? Technically yes but borrower risks are now quite measurable given a rating scale and anyone who has a record would be able to show produce this. As for bad-loans ? it happens even if one has the best tool in place given external factors that are unpredictable like economy downturns etc. The best suggestion is not to place all your eggs in one basket and to avoid high return high risk products. Also, Banks actually parcel out the bad-loans to external agencies (debt collectors) by selling those loan assets to them at a discount (normally at 50 cents to a dollar).

I am thinking of an alternative model, one that replaced the intermediary and placed all depositors/lenders at equal footing with the borrowers. The system works like an auction, those that want money will bid higher to get the pooled funds, and will repay to the next borrower and so on until the funds are exhausted. In my system, the cost of funds is determined by the participants through an auction at different intervals ensuring the pooled funds which are returned until everyone had a chance to access the pooled funds at different intervals. Since we do not have an intermediary to begin with, the party that organized such a pooled will be given the lowest bid to borrow in the first period as “fee” for getting this organized. A result scenario to do this is as follows:

Profit and Loss calculation (over 90 days example below with 4 auctions and results as follows:).


Auction 1 (lowest rate is 1% so winner receives 99 from each). CK received 297 and paid 300 (100 to June, Tony, Baby) = (297-300)/300 = 1% Borrowing costs

Auction 2. (highest rate is 3 % so winner receives 97+97+100, the 100 is from CK who has to repay in full) Mr June received 294 and paid 99(CK)+100(Tony)+100(Baby)= (294-299)/299 = 1.7% Borrowing costs

Auction 3. (highest rate is 10% so winner receives 90 + 100 +100,  the 100s are from CK and June) Mr Tony received 290 and paid 99(CK)+97(June)+100(Baby) = (290-296)/296 = 2% Borrowing costs

Auction 4. (Actually no auction as only one person bidding so Mr Baby received 300 (from CK, June and Tony) and paid 99(CK)+97(June)+90(Tony) = (300-286)/286 = 4.9%Deposit rate



      PL % Diff $
CK June              Tony       Baby
CK 0






June  99






Tony  99






Baby  99






Tot Received  297




Tot Deposited 300




Discount % 1




Auction # 1





Obviously we could also design the system such that CK has to bid as well in the first auction like everyone else but as I mention CK is replacing the intermediary (bank – which has no money of its own to lend) so there should be some incentive to gather the other parties together. Alternatively a mid-rate or average rate can be considered. As one can see the rates are decided by an auction process, it varies and obviously would be higher than bank CD rates. It also depends on the parties which may have different reasoning to set a bid, say one is interested in getting the pooled funds or not. Since nobody knows who will be the next borrower (until auction is finished) the cost of money is determined not on borrower’s risk but each party’s self-interest in the pooled funds.

A clear advantage is averaging out the cost for example for Tony, he was desperate for funds (in auction #3) and willing to pay 10 % and indeed paid 10 % but on average he only pays 2% because he is receiving 100 and 100 from CK and June who had previously borrowed 99 and 97 respectively from him. In short the system allows averaging the cost of lending and the interest from borrowing. The risk of default is also lessen eg if one party does not owe up then the others will only loss that portion ie 100 bucks at that auction and not the balance from each individual. For more information about the above US Patent 8,001,035 please email to datuk2 (at) hotmail (dot) com

I provide an video for those who may still need to understand this using a different example.