The upside could be life-changing, if sized appropriately, the downside could be the equivalent to a bad day in the markets. Couple that with the fact that this hedge is both uncorrelated to nearly everything else, and at the same time it lacks the term risk of most hedges, bitcoin doesnt decay like options, or credit derivatives.
The second most common narrative is, digital assets as a form of currency or medium of exchange. Equally as important as the store of value narrative.
Even banks, which people often compare crypto to, have some level of risk (aside from hidden fees, lack of privacy, and limited control over your money).
If something were to prompt lenders to withdraw all their crypto from Compound at once, this would be a problem.