Other option is doing secured loans ourself (this was mentioned in the contract and would be fine). Basic terms would be:
We'd only do secured loans.
Loans would have to be secured by providing collateral to us - in the form of solid securities - with a value significantly in excess of the loan value.
We'd charge a pretty low rate - reflecting the very low level of risk to us. Something like a 1% setup fee then .1% per day.
Loans would be small ones (10-100 BTC). Micro loans (under 10 BTC) aren't worth the hassle and we don't have the capital to do medium (100s) or large (1000s) ones.
I'm fine with doing that - but do SELLING holders want me to? Feed-back welcome - don't worry about the details just whether you'd like it done in principle. Before any loans would be made a contract for borrowers would need to be approved by SELLING (and so would the securities we'd accept as collateral).
I don't see how could we enforce such a loan, in case the borrower defaults.
Think you're misunderstanding what I mean by secured loans.
You want to borrow 100 BTC?
You transfer to me 150 BTC worth of securities first.
If you default or their value drops below 110 BTC then I sell them and get our money back.
That's what happens with most of Coinlender's loans now - collateral is required.