Quote from: slackovic on September 25, 2020, 07:09:52 PM

Quote from: semobo on September 25, 2020, 07:01:23 PM

Decentralized finance doesn't really have any benefits to the traditional lending system but it has more cons to add which definitely make the defi projects useless in the long run.For example giving complete control of your funds to someone will result into complete loss if the value of the coin dumped and also attacks from hackers can be the real challenge.

But in the traditional lending system you are too giving complete control of your money to someone else. Most of the time you don't even know who is in control of your money. As for hacking, traditional banks can be hacked too (not really hacked, but robbed). The only difference is that money in the bank is insured. I guess eventually DeFi users will be able to insure their money to be safe from dumping tokens and bad smart contract code. DeFi is still new and it needs more time to develop to become a competition to the traditional lending system.

Traditional lending system is kind of having lot of benefits like low interest rates and not really any need for collateral for some kind of loans but for decentralized we need to give something that equals to the value we are getting so it better to sell that and have the money we wanted in my opinion.