Ethereum

https://x.com/_yakovsky/status/1891915559819935850

Onchain mortgages seem like the final boss for DeFi.

Cross jurisdictional. Tied to permissioned, off chain, sometimes off line, state based systems. No onchain recourse to claim the collateral asset in the event of default. 

Sounds hard.

But there’s also a wealth of opportunity. Here in Australia for example I cannot access a permanently fixed interest rate on a mortgage, the default is a variable rate and essentially all fixed rate loans revert to variable after a maximum of 5 years. 
This is because we don’t have a well established mortgage backed securities (MBS) market that off loads the risk of long term fixed rate mortgages for banks. With a global onchain mortgage market and a tokenised MBS market behind it there would be more competition, more consumer choice and greater access to home ownership globally as a result. 

Sounds worth doing. 🏡

Horticulturalist. Environmental hand wringer. Open source enthusiast.

Can you get a long term fixed rate loan anywhere? That seems like an impossible risk assessment for the lender.

95% of mortgages in the USA are long term fixed rate mortgages, 70% are fixed for 30 years.

Most of Western Europe has access to long term fixed rate mortgages, though they’re less dominant and more commonly 10-15 years.

Pragmatism (Security) at OP Labs.
Prev: ConsenSys & Coinbase.

Attribs: Friendly, curious, introverted, mid-witted.
Chans: /eth-security /maurelian /stoicism




95% of mortgages in the USA are long term fixed rate mortgages, 70% are fixed for 30 years.

Most of Western Europe has access to long term fixed rate mortgages, though they’re less dominant and more commonly 10-15 years.

https://www.tandfonline.com/doi/full/10.1080/15214842.2020.1757357