> it seems like there'd be zero risk as long as the LTV is >= 1.0, but that sort of defeats the point of loans. ;)

Help me see what I am missing, what is the point of loans that is defeated by requiring an LTV >= 1.0?

To my knowledge all collateral backed lending is based on the principal that the collateral value must always be greater than the value of the loan in order to remain solvent. Since crypto is a volatile asset, you would expect lenders to require higher relative LTV than vs real-estate, which for the most part they do.