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0 pointsskybrian4y ago0 comments

A more important limitation for defi loans is that nothing other than blockchain assets can be used as collateral. You can't use the loan to buy anything real without having enough money to buy it already.

A mortgage lets you buy and live in a house even if you don't have enough money to buy the house.

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emillime4y ago

That is a bit too simplified. You can add yield bearing tokens as collateral. That basically means that as long as the yeild is more than the cost of the loan the loan wil pay back it self.

skybrianOP4y ago

Hmm, that's sort of interesting but it seems like it presumes you own the income stream to begin with, and that it's already been turned into a cryptocurrency token. What are some examples?

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0 pointsskybrian4y ago0 comments

A mortgage lets you buy and live in a house even if you don't have enough money to buy the house.

0 comments

emillime4y ago

That is a bit too simplified. You can add yield bearing tokens as collateral. That basically means that as long as the yeild is more than the cost of the loan the loan wil pay back it self.

skybrianOP4y ago

Hmm, that's sort of interesting but it seems like it presumes you own the income stream to begin with, and that it's already been turned into a cryptocurrency token. What are some examples?

j / k navigate · click thread line to collapse