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 community governance allows a defi protocol to move forward a flexible financial architecture without any disadvantage dependence on any centralized institutes. As a result, the scalabilities are expanded strongly.
DeFi lending allows traders or investors to deposit Crypto for fiat to fulfil other needs without selling off. For instance, a business that holds crypto assets and wont want to sell to execute a project could simply approach a DeFi lending platform to deposit Crypto for fiat to execute the project.