simple, sovereign, and secure
as of today you can have all 3 with Lava’s new bitcoin lending product
nostr:note1gup2446hk7c0x6z6558x3jy4qczwuh2ef3734vfucxztq2pjwd0qvlr43h
Discussion
This is cool, but just to check - this is only for over collateralized loans right?
yup, over-collaterazlied loans help the lender manage risk against the typical downside volatility in the asset.
of course, over time I’d guess the volatility likely dampens and LTVs might go up, but that’s over the “years” timeframe
And it also removes the need for a credit check of some kind and a way to recoup funds - I always thought that was the biggest reason for over collateralized loans
It always comes back to managing risk and it’s a spectrum of risk/pricing of the loan. Credit checks help the lender lower risk by knowing more about to whom they’re lending and pricing it more appropriately for that assessed risk.