I don't think you understand. No ass cares about housing loans. The risk is different with houses compared to crypto. If you want to take out a large loan (1M+) you have to KYC with a big house like Galaxy Digital and they X-Ray you 100% before you get a single dime. Thus the rates are way lower and depend on your reputation. You definitely won't even pay half... You on the other hand will most likely go to a retail platform where your creditworthyness won't be checked. They play the game of averages, so you're paying these 10%+ rates because of the default risk of the entire client base. The lending market is 10b $ + right now with billions of dollars in institutional loans. And believe me: Nobody will liquidate size like this in seconds. Please don't make the mistake of comparing these rates with average Joe's credit card rates, corporate lending rates or housing rates. The structure is different, the math behind it is different and there are crypto specific problems that need to be adressed yet.
KYC is irrelevant to credit risk because they have collateral worth twice the value of the loan, and liquidate it to cover any missed payment or whenever the collateral value declines to 1.25x the value of the loan, or whatever. The liquidation thresholds of various loans will be distributed randomly across a wide range of prices so they won't all need to be liquidated at the same time.
You don't need to overcollateralize 1.25 when you borrow OTC. YOU need to overcollateralize, because you're a small fry and you need to go to the loan sharks. Screen shows 8% annualized for a 6m loan, whereas OTC repos are quoted around 3% p.a. Minimum trade size 1m. Look, I tried to outline some facts of this market, but you don't seem to be willing to wrap your head around it. If you think these rates are too high, then you should rather think about arbing them instead of gambling at IB. Good luck