[vmception]

CREAM's Ironbank does undercollateralied/uncollateralized loans. They approve lending to protocols but they can easily decide to take risk on individuals if they want.

Likely there will be competition, and bad actors causing no recourse. But non-performing loans are easy to see so much faster than the traditional system, could easily limit losses with lending caps.

I didnt really understand the part about loans only usuable for financial speculation, you can cash those loan proceeds out for USD to do whatever you want. But even if you couldnt, financial speculation is called “good debt” anyway, compared to consumptive spending, so I dint understand the criticism standard here.