Are people only trading the crypto they borrow or withdrawing and doing other things with it (possibly in the real world?)
If people are mainly just trading what they borrow, what happens if they lose all of it/a lot of it and can pay back the amount?
Defi is not only about lending and borrowing there are lot others included in it and its simply the dapps created which eliminates the middle men between both parties, currently defi lending and defi exchanges are so much popular than other like insurance 3 layer applications and derivatives.