[bansuian]

This is similar to a securities line of credit(SLOC). Brokerages already have this. Am not getting how this is so different from todays system. M1 finance and E*Trade, IB all have SLOC. If you own a house you can get an equity line of credit. Either way you a borrowing against an asset that has some value. It just so happens in this case it’s Bitcoin. Is that the only difference?

[shane_b]

Yeah the idea is the same except for bitcoin as the asset. Additionally no minimum asset amount. SLOC allow borrowing up to 35-50% of asset vs 80% or more. The interest rates are comparable tho.

[renewiltord]

It is precisely the same but provided in a decentralized fashion. This allows anyone to participate with any amount (theoretically).