Quote from: mat_williams on May 15, 2016, 11:47:13 PM

how exactly CAN domain names be used as collateral?

The domain is transferred to the person giving the loan, and is then sold should the loan be defaulted. If not, the domains are transferred back to the person recieving the loan once they have repaid fully.
The problem with taking domains as collateral is that most of the time they can't be sold quickly for a good price, causing the person giving the loan to be out of pocket for a while.

Quote from: The Pharmacist on May 15, 2016, 07:31:26 PM

I have yet to see someone actually take a domain as collateral. I'm sure it happens but.it's rare. And I don't think your domains are worth 120% of the loan amount, which is generally what it needs to be.

I believe it happened when EcuaMobi gave a loan to liteon (which was defaulted). Not entirely sure if he has managed to get the loan amount back through collateral yet, which is the problem with accepting domains.