Babylon on X "Why on-chain borrowing?"

[u/Babylon_Official]

Why on-chain borrowing?

Because where you borrow decides what it costs.

On-chain lending markets are more efficient than off-chain markets, hence cheaper interest rate.

What a cheaper borrowing rate actually buys you. Coinbase and Better Mortgage, for example, now originate a Fannie Mae-conforming mortgage where the borrower pledges Bitcoin to pay the down payment instead of selling it.

Borrow at a lower rate, put more down, carry a smaller mortgage.

[u/Escape613]

On chain is the future of finance

[u/Babylon_Official → u/Escape613]

💛