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Okay, these loans that are backed with real world assets are just traditional finance right? We were discussing loans that are granted automatically to anyone
by lottin 3y ago
Okay, these loans that are backed with real world assets are just traditional finance right? We were discussing loans that are granted automatically to anyone without requiring an approval, remember:
> How I can take out a collateralized loan, anywhere in the world, without having to ask for approval?
- whimsicalism 3y agoIs it traditional finance if it is a backing loan for dollar-pegged assets that can be held by anyone in the developed world (ie. rather than rely on your rapidly decreasing Naira - buy some Dai from a local dealer and you have a stable store of value backed by a global basket of assets)? And if the entities granting the loans are anonymous decentralized collectives? I agree that the overcollateralized loans backed by crypto are less useful unless you want to be investing crypto, which is what I mentioned at the beginning of my comment. I am not the commentator who said the thing about anywhere in the world without approval.
- lottin 3y agoA loan agreement that is enforced by courts of justice is traditional finance certainly. Loans in decentralised finance use smart contracts, instead of relying on the legal system.
- latchkey 3y ago> Loans in decentralised finance use smart contracts, instead of relying on the legal system. Code over law.
- latchkey 3y agoAnd what I was pointing out is that there is a use-case for crypto. DeFi.