San Francisco-based lender Divine Research has released nearly 30,000 unspecified crypto loans since December, using Openai CEO Sam Altman’s Iris-Scan Platform World ID to prove lenders.
The Divine offers loans under $ 1,000 to USDC (USDC) Stablecoin, mainly to foreign lenders who have nothing to do with traditional finance. It uses a World ID to ensure that users cannot open multiple accounts after the development.
“We lend to average people like high school teachers, fruit sellers … Usually anyone with access to the Internet can get access to our funds,” the holy founder Diego Estevez said in the Financial Times. “It’s microfinance in steroids.”
Interest rates range from 20%to 30%, with a reported first-loan default rate of almost 40%. “High interest rates will pay for these losses,” Estevez said, adding that the free tokens of the world issued to lenders may be “partially” -reclaimed.
Related: Payment, Collateral give defi edge as tradfi eyes crypto loan
Daily investors can earn by funding high risk of crypto loans
Estevez said Divine lenders are day -to -day individuals seeking a steady return. “Anyone can provide liquidity. We have been to the system that after incounting for default rates and (interest) offer rates, providers are always profitable.”
The divine is part of a growing group of high -risk lenders lending to the modified market momentum and political tails, along with support from former US president Donald Trump.
Another startup, 3Jane, recently raised $ 5.2 million from the paradigm and offered credit lines that were not defined in Ethereum. Unlike the holy, 3Jane requires “proven proofs” of ownership or income, but still no collateral.
3Jane plans to introduce AI agents that automatically comply with lending rules, aimed at lowering rates while implementing payment. Default loans on its platform are sold to US debt collectors.
Other players like Wildcat have served market makers and trading companies, offering undercollateralized loans with customizable terms. According to Wildcat adviser Evgeny Gaevoy, “In the event of a default, the lender directs themselves directly to look for a recession.”
Related: Fintech companies will move to defi lending for 3 years
Crypto lending gets traction
The lending remains a small cut of the crypto market but attracts growing attention as institutional players reiterate the space again. Last week, reports announced that JPMorgan Chase was Looking at Crypto -supported loansPlanning to lend directly against crypto assets such as Bitcoin (Btc) and ether (Eth).
However, the shadow of 2022 is huge, when major crypto lenders such as Celsius and Genesis collapsed. CEO of Celsius Alex Mashinsky has been punished for 12 years For fraud, and Genesis fixed a $ 2 billion lawsuit.
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