Divine Research Launches Unbacked Crypto Loans Using World ID
- Divine Research has issued approximately 30,000 unbacked short-term crypto loans since December.
- Loans are offered in USDC, primarily to underserved overseas borrowers, with amounts under $1,000.
- Interest rates range from 20% to 30%, with a first-loan default rate reported at around 40%.
- The platform utilizes Sam Altman’s World ID for borrower verification to prevent multiple account openings after defaults.
- Divine’s model allows everyday individuals to provide liquidity and earn returns despite high risks associated with lending.
Divine Research is part of a growing trend of high-risk crypto lenders leveraging renewed market interest and political support. With JPMorgan exploring Bitcoin-backed loans, the crypto lending landscape is evolving despite past collapses of major players like Celsius and Genesis.
Overall, Divine’s issuance of around 30,000 loans highlights the increasing demand for alternative financing options in the crypto space amidst traditional financial system limitations.
