Is there a coin that exists that does this, or at least any papers discussing how it could be carried out in a manner that minimizes or totally makes loss/fraud ?
If you are looking for this type of coin, you'll find most of them as scams.
I've seen that crypto-currencies do not seem to have a proper means of paying back coins. Is there possibly ways to solve that fundamental issue, ie someone take a loan and runs off ?
With this idea, you can see on how people of the forum are running this type of business on
Lending but there's only specific coin that they are allowing to lend and to accept as collateral.