Decentralized Finance (DeFi) is reshaping how loans can be obtained, considering the cumbersome process of getting loan(s) from traditional banks coupled with having to be a slave in paying back these loans for years.
Here we see DeFi offering options way better by margins on how loans can be obtained against one's crypto asset(s) as collateral. I was listening to a fascinating podcast today on how Richard a crypto investor was able to buy a house by obtaining a loan with is crypto asset as collateral on Oasis App.
A link to the podcast on Spotify
Interestingly Richard approached the bank for a loan before turning to crypto, below is the bank's answer to him after weeks of putting paper work together for getting a loan.
affordability is not a problem but you are over exposed and for that reason as responsible bankers we are not able to give you a loan.
I am keen on the term over exposed explained to me but this could be me asking for a bunch of papers describing what that means. It is quite pathetic though as I listened further to Richard's story, a home loan from the bank is basically the bank buying the house and having you as tenant paying for the house for 20 years. This is something most of us have been blind to all our lives as we aim for getting a good job and run to the banks for enslavement believing we are buying a house.
A wise move will be taking a bank loan for a house and the house paying itself off by renting it out or other means of the house generating cash flow, only then it is sensible to take a bank loan otherwise one will be applying for a position as a bank slave.
Decentralize loan still have a long way to go to see higher number of users, we need to see more people getting involved in crypto with that long term perspective, a long term goal puts you in a position for a decentralize loan since you will be accumulating crypto assets without the intention of selling for quick profit.
Collateralized Lending is a new feature we've been developing in the background. When it's released, users will be able to stake their xPOLYCUB tokens into the collateralized loan contract and take out a loan from the Protocol Liquidity in exchange
I have had the opportunity of Hive ecosystem providing things I need to tap into in crypto, Leofinance's ability to give us DeFi without going far out in search of one is an advantage to the community here. Not only is polycub bringing DeFi home to us but having access to collateralized loan is taking DeFi to the next level.
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