You are viewing a single comment's thread from:

RE: Pushing decentralized Finance with peer-to-peer lending.

in #blockchainlast year (edited)

You could also have a structure like Prosper.com and Lendingclub.com, and the investor only invests a small amount in each loan. That way the minority that default don't stop you from making a profit over all. Banks figured that out long ago that most people pay their debts back. Therefore, you invest in multiple loans at a high enough rate, and that high enough rate makes up for the defaults.