Well, we spend around $50 attracting a new customer anyway so instead of making an ad agency richer, we thought it would make more sense to let you invite your friends and deposit $50 in their account, make them $50 richer and make you look good in the process!
The biggest advantage of YadYap is the almost instant liquidity that comes from offering short term 2-4 week payday loans. Unlike Prosper and Lending Club, no secondary market is needed to achieve liquidity for lenders.
As a trader I can review loan payment history and credit score changes since the date the loan was issued, as well as the original loan listing. I can buy Notes that have a shorter time period to maturity. I may be able to find Notes priced below their fair value. And it is the seller that pays the 1% trading fee.
Lending Club opened up to lenders again at just the right time now that lending at Prosper is temporarily closed. According to the Lending Club blog, Utah, where I live, has already been added.