Is there a borrowing mechanism in BTC?

long said:
Is there a way to do it without going through an exchange? For instance, if a friend wanted to borrow money from me and give their BTH (or ETH) as collateral? I mean in some binding mechanism that didn’t require me to trust them to make good?
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Not that I know of.
 
long said:
Is there a way to do it without going through an exchange? For instance, if a friend wanted to borrow money from me and give their BTH (or ETH) as collateral? I mean in some binding mechanism that didn’t require me to trust them to make good?
More...

Who cares if they make good...you have collateral.
 
wxytrader said:
Who cares if they make good...you have collateral.
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That’s what I mean, how do I hold someone else’s BTC as collateral? Without a paper contract I mean. I’m trying to find out if there is a way to avoid banks, exchanges, and lawyers while having a concrete mechanism that will transfer the BTC to me if they default.
 
long said:
That’s what I mean, how do I hold someone else’s BTC as collateral? Without a paper contract I mean. I’m trying to find out if there is a way to avoid banks, exchanges, and lawyers while having a concrete mechanism that will transfer the BTC to me if they default.
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Well, if you're not going to do it on a handshake where they send you the BTC and you send them the money then the smart contract is designed exactly for what you're talking about
 
wxytrader said:
Well, if you're not going to do it on a handshake where they send you the BTC and you send them the money then the smart contract is designed exactly for what you're talking about
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I need to learn about that stuff
 
long said:
Let’s say that I want to borrow against my BTC, is there a way to do it on the blockchain without having to have a paper contract?

On the same note, have you heard of any lending platform that will accept BTC as collateral?
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I think SBF figured out how to do this... You could ask him.

Actually, I guess you can't ask him. He's in prison LMAO

Well, maybe you can. Most federal prisoners have access to a closed and monitored e-mail system. Prison staff can read the e-mail.

I wonder if it would raise any red flags if you sent an e-mail to SBF asking him for help in getting a loan using crypto as collateral... or how you could make such a loan to someone else...

Naaaaah. I mean, he's in prison, right? He can't do anything, right? So why would the authorities care if he communicates with you by e-mail and gives you crypto advice? I mean, that's not, like, illegal or anything, is it?
 
long said:
Thanks guys. Real world acceptance as an asset was one of the things I was wondering about. But it sounds like there isn’t a way for me to loan an individual BTC/fiat against their BTC by just using a blockchain entry. I wonder if one of the alt coins is designed to do this?
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Yes, lot’s. Any DeFi platform will accept BTC as collateral, one just has to port it to that specific L1.

Here’s an older thread that would get you in the ballpark.
https://www.elitetrader.com/et/threads/defi-going-bankless.349553/

If you want to stay on the BTC network, these folks are doing something interesting
https://x.com/sovrynbtc/status/1753055372049338752?s=46&t=RtbvMjSZB-E4IMCIlJrlWA
 
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