10 sats \ 3 replies \ @OT 29 Jan \ parent \ on: Where can one get a line of credit using BTC as collateral? bitcoin
That doesn't make sense to me. Why would someone take the other side of that trade?
I borrow 100k, I owe 113k. I pay it back in 20 years and the lender earns less than 1% PA.
Because ZUSD is backed by BTC, your collateral, not by USD like the usual stablecoins. Nobody's actually lending the money, it's actually your own.
If you pay it back in 20 years, you get your collateral back in 20 years, or you could keep borrowing more ZUSD when the collateral BTC goes up in price.
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