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65 sats \ 3 replies \ @Scroogey 7 Dec \ on: Another Christian loan is available. $10-$150 up to 1 year. Christianity
If the borrower defaults, the platform gives you their 2-of-3 key straight up and you collect 100% of the Bitcoin securing the loan?
If the borrower defaults and the platform goes defunct during the year, you get nothing?
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21 sats \ 2 replies \ @BlokchainB OP 7 Dec
Yeah during the flash crash I had some high LTV loans that got liquidated. The platform had bugs with sending me the collateral but it got fixed.
Now if the platform goes bust or Rugs than I am SOL. This is why I am only doing small amounts.
Also I learned my lesson about LTV now I set it at 50%
But my goal is to offer interest free loans! Credit should be free! F banks and all these institutions that collect interest. Every single loan I create the interest will go back to the borrower. The platform doesn’t allow you to put zero for the APR. And using bitcoin as collateral protects me from default. The way credit should be
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76 sats \ 1 reply \ @Scroogey 7 Dec
Wouldn't an APY equal to the inflation rate (3%) already be "free"? When APY < inflation, you pay more than you get back.
Did they give you their 2-of-3 key for the collateral, or you had to provide an address, and they signed a transaction they constructed? What amount? The full collateral? The collateral minus their 1.5% fee?
In case of liquidation the remaining value will be equal to what you're owed, but there's also the case where the borrower just vanishes, and the value of the Bitcoin rises dramatically. Would the lender get the full appreciation in that case, or the platform takes their cut?
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100 sats \ 0 replies \ @BlokchainB OP 7 Dec
Yeah but I am taking the loss in real terms. This is why I call it a Christian loan. Sacrifice comes in the form of debasement. My loss the borrowers gain.
I had to provide an address. I believe they sign the transaction. I forget the details but the borrower oats the loan origination fee.
If the borrower doesn’t pay it back I get the full collateral the platform doesn’t take any cut. Thus why borrowers must be prudent or they lose the bitcoin upside
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