The problem with DeFi is it can't handle credit risk. You see, banks can also eliminate credit risk. They could lend money, and then insist that the money be

The problem with DeFi is it can't handle credit risk. You see, banks can also eliminate credit risk. They could lend money, and then insist that the money be kept in a box under their supervision. That would eliminate credit risk, and the money would always be safe. Okay, but what would be the point of that? The entire point of lending is temporarily giving up control of resources so that other people can use them. Therefore credit risk is inherent to any lending activity that is useful. Lending without credit risk is pointless, it defeats the purpose. Most DeFi enthusiasts I have spoken with don't understand this.