I SUPPORT BITCOIN-DeFi too, LETS LOOK AT THE BIGGER PICTURE OF HAVING IT
The ability to borrow against Bitcoin without selling it is a powerful tool. It allows individuals and businesses to unlock the liquidity of their assets for various purposes, such as:
Making a down payment on a house
Funding a business
Paying off high-interest debt
Investing in other assets (without selling their Bitcoin)
Your point about Bitcoin-DeFi is spot-on. It represents the natural evolution of Bitcoin as a financial asset. It allows users to have the best of both worlds: the long-term value appreciation of their Bitcoin and the immediate utility of a loan to meet their short-term financial needs. It's a critical step in turning Bitcoin from a "frozen" store of value into a productive and dynamic asset within the global financial system
DeFi is good, but I don't see that much of an advantage in this case over CeFi. Perhaps a little bit in terms of more added competition. If you are going to borrow against Bitcoin to make a down payment on a house, you are anyway KYC'd in this transaction and may need to prove proof of money. My initial guess is that a DeFi lender is more risk based on the number of hacks that have happened, but we've had a few major centralized lenders go bust too. While it is a nice use case, people should remember that the risk is medium to high in both cases.