Thread by @bjnpck

DeFi Loan > TradFi Loan 💪

Using #DeFi to buy real world assets is in many ways superior to TradFi.

Lets explore it via @marcusdotam case of buying a 🚗
• What did the bank say?
• How did he vet projects?
• Whom did he choose?
• How much money he paid?

Join me, a 🧵

1/10

Marcos lives in beautiful Guatemala 🇬🇹

To be able to enjoy it fully, and explore LATAM he needs a ride

As any good law abiding citizen he first went to his local fiat dealer

After about an hour of checks the clerk was thrilled to offer him the competitive rate of 24%

😬

2/10

Marcos, being no fool, told him to F off and went straight to exploring what good ol' DeFi has to offer.

MakerDAO, Aave, Compound, Liquity, Alchemix and many others were inspected and half of CT consulted.

3/10

https://twitter.com/marcusdotam/status/1648039045375619106

He was going to choose a winner based on the following criteria:

1. Ease of use
2. Battle-test and reliable
3. Sufficiently decentralized
4. Lowest possible interest rate

Long story short, the winner was @LiquityProtocol 🌊

4/10

So off he went and did the following:

1. Loan opened on @DeFiSaver at 250% CR [0.5% fee]
2. Swapped to $USDC on @Uniswap [0.3% fee]
3. Off-ramped to $USD [2% fee]
4. Paid the owner of the car

A total of 2.8% vs. 24% on tardfi. 😎

5/10

The downsides of DeFi:
• Overcollaterized loan, need to have lotsa $ETH
• The process is cumbersome for noobs
• Gas fees can be high

But if you are a degen at heart and long $ETH those are not really issues.

Now look at this beauty 😍

6/10

I love to see DeFi being used to purchase real world assets.

Many users took out loans to purchase houses, land, cars, motorcycles or to jus pay for expenses.

A great example is this interview with [redacted] who bought a house with land:

7/10

And there are many other examples.

@ErikVoorhees bought a house with Liquity while @ashleighschap, @localghost and @Mavenfrontend got themselves a new ride.

8/10

I personally use #LUSD to top up my @holyheld debit card and pay for beer, expenses and what not.

I find this rather handy 😃

9/10

https://twitter.com/bjnpck/status/1642211353665634304

Have you ever used Liquity is a similar way?

I'd love to hear what you thought of the process, and if anything can be improved.

Just DM me, maybe we can even do a user-story spaces 🤔

And check the full article/video: marcus.mirror.xyz/KSm3WUhWLNBL32…

10/10

Please RT if you liked this 🧵

Pinging some crypto amigos
@rektdiomedes @DeFi_Dad @phtevenstrong @DeFi_Cheetah @DefiIgnas @0xngmi @WinterSoldierxz @bizyugo @bitfalls @DU09BTC @ncerovac @uhr3al @kevin_soell @ape_rture @crypto_linn @crypto___baby @0xAlig

https://twitter.com/bjnpck/status/1654097759006507010