DeFi-powered Consumer Loans

Problem to Solve:

1. DeFi is too over-collateralized, where one has to put > 100% of their loan amount as the collateral, making it unviable for real use cases, leading to only speculative use cases.

2. On-chain reputation and credit scores might solve this in the future, but not in the near term.

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Possible Solution:

A potential solution would be to:

1. Accept Capital and Liquidity from DeFi, where primary and secondary marketplaces of loans can be created.

2. A FinTech does collateral and profile underwriting and KYC to ensure legal compliance and enforceability and acts as a Frontend.

Resources:

1. GoldFinch
2. Huma Finance
3. A list of DeFi projects that have won Solana global hackathons in the past

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