Bitcoin backed loans directly on-chain with zero counterparty risk

I know that this is probably old news by now, but I couldn't find a thread about it, so here goes.

Luke Childs has come up with a protocol for "Bitcoin backed loans directly on-chain with zero counterparty risk" using atomic swaps, Discreet Log Contracts (DLCs) and a set of proposed changes to Bitcoin consensus rules categorized as covenants.

Due to covenants not yet being implemented this isn't currently possible to do on Bitcoin (BTC), but apparently COMIT Network has implemented something similar on Liquid. However, as we all know, Liquid is centralized.

I'm aware that it's probably quite simple to implement collateral backed loans on the SmartBCH sidechain due to MoeingEVM. That said, assuming we want to keep as much functionality as possible directly on the main chain, could this be done on Bitcoin Cash itself or are there also some missing components here?