How can you borrow money in DeFi without locking up capital? Right now, it's simply impossible. Most money markets rely on collateral and liquidations as mechanisms of trust between lenders and borrowers. Unfortunately, that comes at the cost of efficiency and flexibility. But soon, things will change. @3janexyz has the ambition to offer unsecured loans. Let’s try to break it down as simply as possible. To paraphrase @PaulFrambot: "Trust is the only true requirement for lending." And that’s exactly where 3Jane is trying to bring something new. The protocol will determine algorithmically who can borrow, how much, and at what price. In other words, who it can trust and to what extent. To do that, 3Jane feeds its algorithm with two main sets of data about the borrower: • Creditworthiness, both offchain and onchain, using scores from credit analytics companies like @creditkarma and @cred_protocol. • Assets, meaning what and how much they own in their wallet, on CEXs, and in their bank account. But that’s not enough. Don’t forget we’re talking about real money. Even if the algorithm manages to filter profiles and assign trust properly, how can you be sure borrowers will actually pay back? To address that, 3Jane relies on real-world legal systems. When a borrower opens a credit line, they sign a contract that allows for legal recourse in the real world in case of default. I think you get how the whole thing works. Collateral is replaced by a combination of on- and off-chain data analysis, asset verification, and real-world legal enforcement. -------------------- Borrowers can get a credit line based on a wider range of assets without locking up anything. Plus, even though I didn’t go into detail, the process doesn’t require heavy KYC. You just need to connect your CreditKarma and bank account (securely). It takes like two minutes. Lenders, on their side, can earn higher yields due to the increased risk compared to traditional liquidation-based systems. But here’s the real question: do you trust it enough to supply USDC?