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As a borrower, this is a perfect way to attempt to get free money, since there's no penalty for defaulting on the loan.
by atomicUpdate 9y ago
As a borrower, this is a perfect way to attempt to get free money, since there's no penalty for defaulting on the loan.
- mcjiggerlog 9y agoThat's what it seems like. I'm happy to be convinced otherwise, but the homepage doesn't really explain anything.
- sm4sp 9y agoThe white-paper has more detail than the homepage and I recommend reading it for a better understanding of the project From what I understand, third party entities responsible for vetting borrowers. These entities referred to as "Risk-Assessment Attestor"(RAA) are incentivized to do quality risk assessment as they get a piece of the loans they vet. Here's a section from the white paper, discussing the importance of RAAs and how they might deter habitual defaulters "Moreover, RAAs are capable of reporting borrower defaults to relevant credit bureaus on the behalf of lenders. Thus, borrowers are disincentivized from defaulting on loans insofar as their future creditworthiness, both within the Dharma network and in traditional loan markets, will be adversely affected." https://dharma.io/whitepaper https://dharma.io/whitepaper
- joosters 9y agoWhat happens when the borrower and the RAA turn out to be the same entity?
- KomradeKeeks 9y agoA series of defaults where the RAA shrugs after questions about their legitimacy surface, I bet.