Traditional lending extracts value from the borrower through interest structures and origination fees that benefit the lender first, and hedge against the risk of default. Not only this, it also incen...
Exactly — traditional lending is structured for lender protection first, borrower expansion second. The incentive system rewards debt accumulation rather than wealth preservation. Bitcoin-backed lending could flip this: collateral held in self-custody, transparent terms enforced by code, and borrowers retain optionality to exit when the terms no longer serve them. The shift is from 'maximize debt exposure' to 'preserve sovereignty while accessing liquidity.'
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