Yesterday a story circulated of a developer who took out a DeFi mortgage. But in reality, it was just another cryptocurrency loan, albeit a novel one at a high fixed interest rate. There are already plenty of mortgages stored on a blockchain at scale, but a centralized entity usually does the loan origination.
We start to explore what it would take to automate much of that process in a DeFi way. And the conclusion is that banks probably don’t have much to worry about in the near future.
That’s in part because if DeFi started to target your average domestic mortgage, the potential risks to homeowners would attract regulators rather quickly.
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