[BrissyCoder]

> To be fair, you do have to start with over-collateralized loans before you can get under/no collateral loans with plenty of projects trying to do the latter.

Yeah but also the collateral always has to be cryptocurrency right?

[probe]

Yes for the most part it is. One reason being that it's just a lot easier to code and cleaner when everything is on-chain and tracked the same way.

But that's starting to change (https://centrifuge.io/) - still a long way to go ofc. I also know people who have done non-crypto collateral or just completely unsecured lending, but it does involve trust that is off-chain (legal contract, know the person, etc). I think that's a fine stepping stone (and may end up being necessary) as people figure out how to do everything on-chain and in decentralized ways (ex. using on-chain reputation)