hmmm.. this is using DLCs to setup a non-custodial smart contract between a borrower and lender so the loan is just programmatic and shouldn’t care much about who the parties are. Not sure if individual reputations will add more signal, but maybe there are cases? 

 Ah ok, I need to understand the details better

https://m.primal.net/KBgh.png  

 You deposit bitcoin, you get stablecoin (e.g. USDC/USDT) that you can off ramp to bank dollars. You pay the right amount of stable coin back at the end of the loan term (all encoded programmatically) and you get your bitcoin back.