Liquidity is necessary for all the project. That is why it is necessary to develop the ecosystem of the project and support its community including providing profitable conditions for liquidity pools.
Many people need loans. DeFi makes financial services available for all the people. That is why there is a big demand in DeFi and new DeFi appears and offer new services.
DeFi platforms use cryptocurrency as collateral. It is very important to return the loan. That is why the collateral is used to guarantee payment for the loan.