Divine Research issues unbacked crypto loans using Sam Altman’s World ID

Key Points

1. Divine Research offers unbacked loans under $1,000 in USDC, primarily to overseas borrowers, using World ID for verification.

2. Interest rates range from 20% to 30%, with a first-loan default rate of around 40%, compensated by high interest rates.

3. Borrowers receive free World tokens, which can be used partially to offset loan costs.

4. Other startups like 3Jane also offer uncollateralized crypto loans, with plans to use AI agents to automate lending rules and lower rates.

5. Crypto lending is growing but remains a small market segment, with past collapses like Celsius and Genesis highlighting risks.