I'Ve been away for a while, I just read about

if we lend out assets with under collateralized loans to anon wallets with no credit history we would implode within a few days because people would have no reason to pay back the loans. .. so i suspect we wont be doing that

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19.06.2022

NXMY Автор вопроса

4 years locked. veMAXI (as a millionaire)
if we lend out assets with under collateralized lo...

Interesting. How is that different to lending out to people with credit history but without collateral? These people will also have no reason to pay back the loans? Even less reason I would say, if they put zero collateral as opposed to some collateral in the other example.

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19.06.2022

Ssl011

NXMY
Interesting. How is that different to lending out ...

I guess all users will be KYCed and sign contracts like bank loans and then you have to go after them for non-payment like traditional finance does today

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19.06.2022

4 years locked. veMAXI (as a millionaire)

NXMY
Interesting. How is that different to lending out ...

banks have been around for a long time , you dont find many banks that hand out money to people with no credit history or assets. there is a reason for this. its because banks like to get their money back.

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19.06.2022

Ssl011

4 years locked. veMAXI (as a millionaire)
banks have been around for a long time , you dont ...

Who doesn't want their money back? :) Celsius users?

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19.06.2022

NXMY Автор вопроса

No, but Sam said in one of the messages above that undercollateralized loans will be offered in Fraxlend. So these types of loans will be available only for people with credit history. Yes or no?

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19.06.2022

4 years locked. veMAXI (as a millionaire)

NXMY
No, but Sam said in one of the messages above that...

clearly the answer is yes. like any loan that is not backed with collateral the person , protocol or company will need to have proven track record of good credit.

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19.06.2022

NXMY Автор вопроса

4 years locked. veMAXI (as a millionaire)
clearly the answer is yes. like any loan that is ...

Gotta start building good credit then. How will that work in Fraxlend? Can I start with taking a overcollateralized loan, pay it back and will there be a system of credit score of some kind implemented? How will it work?

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19.06.2022

4 years locked. veMAXI (as a millionaire)

NXMY
Gotta start building good credit then. How will th...

no details are released

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19.06.2022

Zeean

NXMY
Gotta start building good credit then. How will th...

I don’t think FRAXLEND is for individuals tbf, more for DAO’s and other protocols.

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19.06.2022