> With all due respect, if you are anti-DeFi, you are not a pro-crypto person at all. I see a lot of this "I'm a pro-crypto person, but decentralizing finance i

> With all due respect, if you are anti-DeFi, you are not a pro-crypto person at all. I see a lot of this "I'm a pro-crypto person, but decentralizing finance is not needed" comments, and it's completely incoherent. I'm sorry but you misread what I said, perhaps I was not clear enough: I nowhere said or at least did not intend to say that DeFi per-se is bad. I merely don't understand what's good about the DeFi projects which the person I replied to listed. So my intention was to ask what is good about those in particular. > Loans issued via Ethereum lending protocols like Maker or Compound are fully collaterized, and default leads to automatic liquidation of the collateral to compensate the lender. It's impossible for the borrower to cheat, because an immutable smart contract enforces the terms of the loan. So what is the point of borrowing money then if you have the money already, which "fully collaterized" implies? > No, any asset can be represented as an Ethereum token and traded on a DEX. Having assets worldwide use a common exchange that can never be shut down, hacked or made inaccessible, holds enormous potential for improving financial inclusivity and capital efficiency. That is a valid point! I don't understand why a token is needed though, it's impossible to enforce its physical correlation to the asset anyway, so it would be enough to send naked ETH/BTC and use a regular decentralized forum system for setting up trades. I.e. if someone says on a forum "You send me N ETH and you get a car" that has the same validity as moving 1 car token, because nothing can enforce that the digital movement of a car token causes the physical handover of the keys. So "I owe you 1 car" only needs to be documented somewhere, e.g. as a bare textual message in an OP_RETURN or as a hash referencing a forum post, it doesn't have to be a token. So to be completely honest, I feel like the only reason the developers cramp a token into this usecase is because that allows them to issue the token, which implies they can issue a lot of it to themselves "to fund development", and once it grows in value they're rich.