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For those who have no idea what the title says, I offer my apology here. Finance by itself is a deep topic with many trade-offs, similar to the world of engineering. According to a greate economists Thomas Sowell

There are no solutions, only trade-offs

In the DeFi (Decentralized Finance) sense, as much as we all love the high interest rates, the trade-offs aren’t always clear in this nascent industry. The underlying concept is really simple and sound. It goes something like this:

  • For borrowers of USD: They deposit their cryptocurrencies as collateral to borrow USD, and pay interests
  • For lenders of USD: They deposit their USD to lend to borrowers, and charge…

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