Topic: Why don’t the users here lend on other platforms (Read 119 times)

Also companies fail and data is shared, I think most lenders rather be their own boss and keep more profits as well.

Some do, but it usually comes at a higher risk of losing any money used to lend to others. I used to lend on btcjam, and while I made some okish choices, overall, I did lose out on some btc (around 2 btc, which at the time wouldve worth about $800 USD). Honestly, that site overall was doom to fail because of the high default rates on there, failed collection, and btc side on failing to identifying people who do sign up (a couple of people who defaulted stolen identities from others). You also had people trust farming, by taking out multiple loans in small amounts, paying them off in a short span, and build up to take out a large loan and pretty much run off. Furthermore, due to the fact that there was never any collateral posted, it becomes extremely high risk, especially if the price of BTC increases. I've seen more p2p crypto lending sites shut down, either due to them not profiting (eg from defaults), being a overall scam (eg ponzi scheme), or just not worth supporting anymore. If I were to ever lend crypto again, I would rather do it on this forum than on another site. Sure, some places do have it where collateral is required but there is no guarantee that the collateral is held in a true multisig wallet, or if the owners of said site is also attempting to take loans with collateral then keeping both the loan and collateral (due to them having access to both the site private key and the borrower private key to sign the transaction, assuming that its a 2-of-3 multisig wallet), etc. Doing it here, we know who to really trust when it comes to having collateral held in a trusted escrow, or hold the collateral directly, etc.

Most probably the escrows here offer way more trust than those websites.
Even some exchanges offer lending feature and have bigger chance to get lenders than those websites with not-that-big amount of money they work with on the daily basis, less known and .. honestly, much less trusted.

It's easy to build a website. It's much harder to prove it's a solid business that can be trusted.

Well the reason are pretty simple:
1. P2P lending is though seems to have been simplified by these "platforms", one can question their legitimacy of loan originators. Often you see some P2P lending sit shut down and then after a long time it is found out that it a was disguised ponzi with fake loan origination. Meaning the company faked the loans to make sure the site ran on the investment, so one fine day they could scam.

2. Here you somewhat know the user how is being lent, maybe not documentation but with older users who have had a reputation they are often known to others respected users. So you know you are lending to someone who needs the money and its not a ponzi.

3. The risk here is that the default rate is going to high because there is no method of debt collection. Which is why they always ask for collateral backed loans.

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"plenty" means quantity, not quality.

There seem to be plenty, centralized or decentralized
BlockFi, Genesis, CoinList, just to name a few