Proof-of-Reserves would fix this. Strike does some interesting thingd, but I wouldn't take a loan unless I could find my sats using bitcoin-cli.
Discussion
Without corresponding proof of liability, it doesn't say that much. Celsius also did proof of reserves
https://cdn.nostrcheck.me/2f5de0003db84ecd5449128350c66c7fb63e9d02b250d84af84f463e2f9bcef1/cc436900bf0e7d8bdf8f4120bb865a0220bc358659df7af6a91b295beecf99ab.webp https://cdn.nostrcheck.me/2f5de0003db84ecd5449128350c66c7fb63e9d02b250d84af84f463e2f9bcef1/5d89d7a4f5ef523a62788e49f4690f9d65a72a566b3fa5d1df72b62bc570f111.webp
Great pt
True, but I'm thinking something like Unchained where you hold 1 of 3 keys. At least you would know if your bitcoin was re-hypoteicated away. The fact that they don't have this before the rollout makes me nervous.
Even 1 of 3 seems very pointless if two parties can collude to take the coins. Seeing them on chain still doesn't say much, they can still be rugged at anytime, it's a false sense of security
Imo just stay humble stack sats in cold storage, don't ever worry about any of this, and just spend/sell coins when needed
Yeah, nothing beats that advice. Loans are more risky. There is no protection against 6102 attacks.
That's the biggest risk with these trad-fi products.
I can also get an uncollatoralized loan for under 7% so it really doesn't make sense for most things.
It's only good to temporarily let the bank know you have money in the bank to qualify for a mortgage. This didn't exist when I bought my house and I'm glad because I might have gotten myself into trouble.
It was painful to buy fiat maxi bucks though.
I've been tinkering with BitKey. Something like this, but with seeds companies could fully verify, would be perfect for this.
What if
The customer holds key 1
Company A holds key 2
Company B holds Key 3
If customer ≠ deadbeat, customer gets sats back.
If customer = deadbeat, customer loses sats.
Now the customer is the proof of liability.
Company A says, this dude is a deadbeat.
Company B acts as an arbitrator and makes a decision based on the evidence.
If keys are lost, Bitkey can do some Bitkey stuff. ( Full Disclosure: I haven't verified how this works yet)
Risk can be mitigated further by using Anchorwatch because of insurance.
go all the way, you coward