Debt in itself is not a bad thing. The problem is when debt creates new money. The oldest written records that exist are promissory notes. Money has always been lent, and a functioning loan market is good for the economy as long as the money lent is money accumulated through savings and not newly created.
firefish is not some centralized platform that offers interest on bitcoin and prints shitcoins against it. It's just a protocol that connects supply to demand and allows you to take out a loan in fiat that is secured by bitcoin. That's what multisig transactions directly on bitcoin are for. The idea is not to make money on my bitcoin, but to get a loan in fiat so I don't have to sell bitcoin, or to get interest on fiat by lending it against a liquid pledge of bitcoin.
You're not responding to my post at all.