Uncollateralized Lending: DeFi’s Next Big Evolution | Sid Powell, Teddy Woodward
Bell Curve
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Under Collateralized Lending in CFI?
Mike: I feel like a lot of the conversation around under collateralized lending goes back to what we talked about in the earlier part of this podcast where it's like, people have a misunderstanding of what it actually means. He says on chain credit is kind of overhyped and that you can take advantage of assets that aren't really theoretically yours but they could do disaster. "I'm not familiar with what you mean by personal guarantee," he said when asked if CFI lenders should use smart contracts instead of personally guaranteeing loans for their clients. 'That requires a legal system which has authority to go, you know, take your stuff, right? And that doesn't exist on chain,' Mike
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