Divine Research, a fintech company from San Francisco, offers uncollateralized crypto loans using biometric technology from World ID for global borrowers.
Overview of Divine Research Initiative
Since December 2024, Divine Research has issued around **30,000 loans**, mainly targeting overseas markets underserved by traditional finance. The initiative uses World ID's biometric identity verification to reduce fraud and create liquidity for everyday investors.
Financial Terms and Target Audience
Loans are offered in **USDC** with interest rates ranging from **20% to 30%** targeting users such as educators, vendors, and gig workers. Despite a **40% default rate** on first-time loans, the project aims to improve financial access in underserved regions.
Prospects and Challenges in Crypto Lending
Divine Research uses token-based incentives, applying **Worldcoin** to manage defaults and partial collateralization. Founder Diego Estevez believes profitability for liquidity providers can be maintained by accurately assessing risks; however, the stability of high interest and default rates remains uncertain. He stated, 'Anyone can provide liquidity. We've engineered the system such that after accounting for default rates and the **interest** rates on offer, providers will always make a profit.'
Therefore, the Divine Research initiative represents an innovative approach to cryptocurrency lending, broadening financial access, although its sustainability and long-term prospects remain to be validated.
