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Question Crypto collateral loan?

For me, it creates unnecessary centralization, which contradicts the core principle of crypto for me decentralization.
while generally true in case of borrowing fiat against crypto collateral a trusted (centralized if you will) arbiter is a feature not a bug as the fiat interface is always "centralized"

the ideal solution (simplified) should look like this:
borrower locks collateral to 2of3 multisig (2 parties and 1 arbiter both parties trust - otherwise no deal closed)
lender sends fiat
repayment date and interest are given
1) repaid in time including interest -> arbiter and borrower unlock collateral back to borrower
2) default -> arbiter and lender hand over the collateral to lender

easy as that, no tradfi bulls**t and unwanted complexity like installments, margin calls, topping up collateral, etc.

I must be missing something because it seems there is no such service on the market
 
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while generally true in case of borrowing fiat against crypto collateral a trusted (centralized if you will) arbiter is a feature not a bug as the fiat interface is always "centralized"

the ideal solution (simplified) should look like this:
borrower locks collateral to 2of3 multisig (2 parties and 1 arbiter both parties trust - otherwise no deal closed)
lender sends fiat
repayment date and interest are given
1) repaid in time including interest -> arbiter and borrower unlock collateral back to borrower
2) default -> arbiter and lender hand over the collateral to lender

easy as that, no tradfi bulls**t and unwanted complexity like installments, margin calls, topping up collateral, etc.

I must be missing something because it seems there is no such service on the market
I think debifi is exactly this, except 3/4 multisig.
these are the same people who were running hodl. hodl is 2/3 multisig, exactly as you describe.
for some reason (it might be in the second video i posted) they decided to have 3/4 in a more serious product.
or what difference you see from your ideal in D?

cheers,
 
I think debifi is exactly this, except 3/4 multisig.
these are the same people who were running hodl. hodl is 2/3 multisig, exactly as you describe.
for some reason (it might be in the second video i posted) they decided to have 3/4 in a more serious product.
or what difference you see from your ideal in D?

cheers,
debifi has margin calls involved which is a killer bug for me (yes, I'm complicated)
 
sure, initial LTV and/or interest cover undercollateralization - it simply makes the loan more expensive or more demanding when it comes to LTV - no magic
margin calls become less an issue when volatility decreases - it is all the time.
so LTV can go up too.
It is a free market afterall - anybody can go and lend without margin call and high LTV. .... and have a blast...
they just provide the tech

cheers,
 
margin calls become less an issue when volatility decreases - it is all the time.
so LTV can go up too.
It is a free market afterall - anybody can go and lend without margin call and high LTV. .... and have a blast...
they just provide the tech

cheers,
I don't agree on that...
it has so many unwanted practical consequences and dramatically increases complexity - and all for literally no good reason
it doesn't mean it cannot be an optional feature of course if both parties prefer...
 
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I don't agree on that...
it has so many unwanted practical consequences and dramatically increases complexity - and all for literally no good reason
it doesn't mean it cannot be an optional feature of course if both parties prefer...
Have to agree on that. But it is a lenders market still...

Before we seel lenders allowing undercollatetalization, i guess we will see interest decreasing to 1 digit.

The institutional lender is playing by different rules and has a different mindset ..
 
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