one dude explained that they wanted to make a loan platform that would avoid usual bank management costs since it's automated, so he claimed the higher yields came from that. It seemed a coherent explanation to me (he could be lying too, but at least his talk had some foundations and not moonshots of potential decentralized nirvanian future)
How does the automated loans-on-blockchain platform discover someone’s real income and existing debts in a way that can’t be forged? If it doesn’t do that, it’s not really automating anything that banks currently do when deciding to extend you a loan. And if it uses existing sources like credit scores and the salary data sold by employers, then it’s merely the same as the systems banks and other consumer lenders already use.
