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𝐈 𝐝𝐞𝐩𝐨𝐬𝐢𝐭𝐞𝐝 $𝟏𝟓𝟎 𝐨𝐧𝐞 𝐭𝐢𝐦𝐞 𝐣𝐮𝐬𝐭 𝐭𝐨 𝐛𝐨𝐫𝐫𝐨𝐰 $𝟏𝟎𝟎 I know it sounds stupid but you are probably about to do the same 𝐡𝐞𝐫𝐞'𝐬 𝐰𝐡𝐚𝐭 𝐡𝐚𝐩𝐩𝐞𝐧𝐞𝐝. I needed $100 in USDT urgently, but I was holding $150 worth of ETH I didn't want to sell because it could pump went to aave, deposited $150 in eth as collateral and got a 100 usdt loan well that sounds normal until you don't have $150 to deposit as collateral my point is this, onchain credit doesn't make sense if you don't have more than you're currently borrowing and the reason is simple: these lenders don't see past your onchain history and assets so the only way they protect themselves is by locking more than they give you it's a different story when you're borrowing offchain because: - they see your FICO score computed based on your credit history - now, with Cash app and SoFi, even your education, employment history, cash flow and platform-specific behaviors now count what if onchain lenders could see what offchain lenders see? then it means: - more data and richer credit assessment - better loan servicing - loans can be tokenized - less collateral it's exactly what @RialoHQ is building a way for DeFi to price risk properly without locking up more capital than necessary the global unsecured credit market is worth around $4.7 trillion, onchain lending is around $56B, almost all overcollateralized there's still a lot of gap to cover, if you ask me thanks for reading 🙂↔️ #RialoAfricaCreatorChallenge

















