I’ve been thinking about why under collateralized P2P lending via decentralized LPs (in DeFi) hasn’t taken off. 

Reputational risks and lack of a credit system are likely culprits, but Lending Club solved for this when they found FICO scores to be less effective than identifying “invisible primes.”

Anyone working in this problem space?

Focusing on Identity and Reputation, Focusing on Identity and Reputation, Co-founder @Gitcoin, Co-founder @ColoradoProduct. Alum of @Twitter. Just here to buidl

Head of Crypto at https://www.lazertechnologies.com/  // Founder @skycastle // based at @basedevo // Conductor at @choochoo // Always working on cool shit

yeah that seems like a step in the right direction 

Need something in between fully/overcollateralized and very underateralized

Perhaps first step is introducing “co-signers”… some collection of collateral providers ¯\_(ツ)_/¯

Lack of a credit system seems to be the main issue and there’s not a good enforcement mechanism that dings your reputation if you were to default

No but this is gold. I will check it out.