I don't understand the logic of this. Who lends out the assets and why?
- there is no interest to be earned
- you can't get hold of the assets through liquidations either.
So why would anyone lend money?
I don't understand the logic of this. Who lends out the assets and why?
None would, besides the Rune protocol itself. The greater idea is to create traffic and cause fees greater than the risk taken on and for some of the loans to never get payed back ever obviously.
So far the numbers look good, I would assume "IF" their lending protocol survives the first Bear Market and "IF" it doesn't run into an deadly exploit, it will do just fine.
Overcapitalized loans should never cause any interest, that is very logical to me.