Unfortunately, now DeFi is not suitable for ordinary users and scenarios for the type of loan to expand a business, buy a car or something like that. Loans in DeFi do not go beyond the world of cryptocurrencies, and are mostly made with the speculative goal of "making money quickly". And the cryptocurrencies themselves have not really received any official status yet. Laws are just being written for them. Therefore, it is still very, very, very early to talk about an alternative to banks.
In my humble opinion, the hype in 2020 under the brand "DeFi" is not over yet. To date, the ideas of decentralized Finance continue to excite fragile minds, setting new growth records and inflating the bubble. But if you look at it, there is nothing fundamentally new in Defi, most of the projects under today's label "DeFi" have existed since 2017-2018. But for some reason, in only 2020, they raised such a fuss that this is such a necessary, necessary thing today, and that tomorrow, well, the day after tomorrow, they will change the world, of course for the better.
In my humble opinion, the hype in 2020 under the brand "DeFi" is not over yet. To date, the ideas of decentralized Finance continue to excite fragile minds, setting new growth records and inflating the bubble. But if you look at it, there is nothing fundamentally new in Defi, most of the projects under today's label "DeFi" have existed since 2017-2018. But for some reason, in only 2020, they raised such a fuss that this is such a necessary, necessary thing today, and that tomorrow, well, the day after tomorrow, they will change the world, of course for the better.
That's certainly true, mate. The "De-Fi" hype is still not over yet. As long as the pandemic continues to struggle the mainstream economy, the hype over crypto and the "De-Fi" industry in general will persist. Despite "De-Fi's" many attractive features, it's still incomparable to traditional banks. What kills "De-Fi" are high fees and terrible performance (unlike its centralized counterparts). No one will use "De-Fi" seriously unless these issues are solved. The fact that most dApps rely on centralized stablecoins such as Tether and USD Coin, greatly defeats crypto/Blockchain tech's purpose in the mainstream world. Better adoption of decentralized stablecoins (like DAI) is needed in order to "exploit" "De-Fi's" true potential. Otherwise, "De-Fi" will become another banking system (Banking 2.0) as the rich reap all of the benefits.
Nonetheless, it's expected that the "De-Fi" will become saturated due to the extreme hype surrounding it. This means that stablecoin interest rates will decline as most people will be lending instead of borrowing crypto assets from "De-Fi" platforms. Some time ago, the Compound Protocol reduced its 8% APR to 0.48% APR for DAI. Stablecoin returns will not be greater than a bank savings account if APR remains extremely low. While now rates are around 2% annually for DAI, there are other "De-Fi" platforms offering higher rates to other stablecoins such as USDC and USDT. At least, "De-Fi" works as intended. Whenever it'll be here to stay or not, it's yet to be seen. Just my opinion
