/biz/ - Business & Finance

>>19903673
lol regardless of what they collaterize, even if it was a piece of shit, it still has value, yeah it could be a fast depreciating asset, but the fundamental point is how much leeway does the team give related to the assets owned vs the loans supplied.

e.g. they have $1.8 million in ETH locked up to loan out to drug addicts etc, this is short term loans so yield big interest, DMM give 6.5% of say 13% interest back to the ppl providing the ETH, they pocked the rest.

now they protect themselves by getting a collateral asset to match about 400% the value loaned out to these pajeets.

e.g. $8-9 million worth of cars as collateral.

only $1.8 million loaned out, = about 400% buffer.

therefore, if the car is hard to sell, e.g. a 5k USD car.

even if they sold it for $1250 (80% cheaper), they still walk away with a profit.

thats very small risk.

my point is this could very easily just be $1.8 BILLION and collateral could be $8-9 BILLIOn worth of collateral to protect themselves.

they have next to no risk... and thats why they will be able to scale non stop, this is chump change even the CEO with the Link interview said. they only chose cars cos retards understand cars more.

>>19899391

For the retards that don't understand basic maths.

Any asset is viable to be collaterized aslong as the spread is big, in there car scenario it's close to 400% coverage over loan amounts.

So unless a 5k Car can't sell for under $1.25k then they make a profit + the interest on those short term loans.

This is a beast.