@zenthereum
The main idea behind lending is to increase production. Lending helps businesses expand, open new markets, research, develop and innovate. Lending helps individuals buy a home and make a family, buy a car and appliances and have a more productive life as a result. What is DeFi lending? We lend our tokens between us with high yields, and hope that the traditional financial system will see this as an opportunity.
3 comments
What role do you think the traditional financial system will play on DEFI? Since Defi takes power from them.
Perhaps they will try to create automated services running on blockchain. Banks were already interested in these kind of smart contracts on the Ethereum chain. After the DAO incident they figured out they can create controllable blockchains. I am certain they have a response, they just probably don't care right now. I'm not against Defi, I just think that overhyping the lending part of it will damage it in the end.
> hope that the traditional financial system will see this as an opportunity. Probably not, the traditional financial system depends on lending out newly created money, which distorts the capital structure, but saving before lending is painful.