“What happens if you lend to someone and they don’t pay you back?” You don’t get your money back. Lending is a game of trust. If you trust the wrong person, you lose. You can paper it in contracts, take collateral, threaten to deduct points. But the primary game you are playing is one of “should I trust this person?”. All the rest are the mini-games you play after you’ve lost to try and get one extra life. Now, you might reasonably be thinking, isn’t trust counter to why we’re building DeFi? ...

“What happens if you lend to someone and they don’t pay you back?” You don’t get your money back. Lending is a game of trust. If you trust the wrong person, you lose. You can paper it in contracts, take collateral, threaten to deduct points. But the primary game you are playing is one of “should I trust this person?”. All the rest are the mini-games you play after you’ve lost to try and get one extra life. Now, you might reasonably be thinking, isn’t trust counter to why we’re building DeFi? ...