That’s what I mean, how do I hold someone else’s BTC as collateral? Without a paper contract I mean. I’m trying to find out if there is a way to avoid banks, exchanges, and lawyers while having a concrete mechanism that will transfer the BTC to me if they default.
Well, if you're not going to do it on a handshake where they send you the BTC and you send them the money then the smart contract is designed exactly for what you're talking about
I think SBF figured out how to do this... You could ask him. Actually, I guess you can't ask him. He's in prison LMAO Well, maybe you can. Most federal prisoners have access to a closed and monitored e-mail system. Prison staff can read the e-mail. I wonder if it would raise any red flags if you sent an e-mail to SBF asking him for help in getting a loan using crypto as collateral... or how you could make such a loan to someone else... Naaaaah. I mean, he's in prison, right? He can't do anything, right? So why would the authorities care if he communicates with you by e-mail and gives you crypto advice? I mean, that's not, like, illegal or anything, is it?
Yes, lot’s. Any DeFi platform will accept BTC as collateral, one just has to port it to that specific L1. Here’s an older thread that would get you in the ballpark. https://www.elitetrader.com/et/threads/defi-going-bankless.349553/ If you want to stay on the BTC network, these folks are doing something interesting https://x.com/sovrynbtc/status/1753055372049338752?s=46&t=RtbvMjSZB-E4IMCIlJrlWA
https://www.bitcoin.com/get-started/what-is-a-dapp/ https://www.bitcoin.com/get-started/how-to-lend-in-defi/