[DropInIn]

You're insufferable.

The definition for the word encumbrance is literally the opening line and is the exact issue at hand that you refuse to address.

To quote it:

"Encumbrance means any charge, claim, community property interest, pledge, condition, equitable interest, lien (statutory or other), option, security interest, mortgage, easement, encroachment, right of way, right of first refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership."

How does AAVE or any other smart contracts ensure there are no outside encumbrances?

It has to use human third parties and pay those fees, on top of the SC fees.

Really, you're just proving to me that folks promoting this garbage are childish, ignorant and baseleslly arrogant.

And BTW, You are the one running in circles. I've been asking you the same question without getting an answer for several comments now...

[latchkey]

> It has to use human third parties and pay those fees, on top of the SC fees.

No, it doesn't. This can be codified into contracts and automated. Voting in the DAO ensures no single point of failure.

[DropInIn]

Any asset Off Chain must be validated Off Chain thereby adding external costs, which from my napkin math suggest the total costs would exceed traditional alternatives.

And that's without even addressing actually checking for encumberance of the asset, which then makes the whole thing no different than traditional contracts except for much higher costs, an inability to readily modify without significant expense (if at all), and more.

Without checking for encumberance Off chain the entire value proposition of an SC is a joke, as what the code says doesn't matter when a preexisting encumberance applies. (Ed: This applies to on chain assets as well)

And if you're going to say it's not for off chain assets then all your saying is that one essentially can only use existing crypto to secure a crypto loan, which undermine the point of the loan ever being obtained.

[latchkey]

> all your saying is that one essentially can only use existing crypto to secure a crypto loan, which undermine the point of the loan ever being obtained

Pretty sure my loans are perfectly not undermined.

[DropInIn]

Again, avoiding the issue with a allusory deflection.

[latchkey]

What's the issue again? Everything works fine for me.

[DropInIn]

I've been exceedingly clear.

All you're doing now is acting childish afaict, which just reinforces the view you've given of your position being based in immaturity, ignorance and idiocy.

Reread the thread and address the issue explicitly stated or just stop and accept your position is a failed one.