People massively underestimate demand for non margin loans.
The pawn market alone is ~$40B despite terrible infrastructure and high costs.
What most people in DeFi miss:
Borrowers care more about lower payments than max LTVs.
By offering lower LTVs, borrowers can negotiate lower interest rates while avoiding liquidation risk entirely.
As Rusty Shapiro (
@__fallen_icarus) explains, DeFi solved leveraged trading, not lending.
Read the blog ↓