Defi is controlled by large networks of computers, not central authorities. Many investors use bitcoin like gold, as a store-of-value investment that protects against inflation, while Ethereum has been instrumentaland controversialin helping startups crowdfund their operations.
Paradefi will enhance and expand it's area of usability.
Though many fixate on the high interest rates for lenders on Compound, actually taking out a loan yourself isnt too bad either. All you need is some crypto to deposit as collateral. No credit checks, income statements, or delays.
Regarding default risk, you should keep in mind that people who are attracted to these sorts of loans may have a bad credit history and are usually deemed a high risk of default.