#Meme齐涨
On-chain lending ignites a new era in finance: Under the wave of decentralization, $20 billion in outstanding loans witness market transformation!
On-chain lending: A new revolution in the financial sector
Recently, management consultant and Ethereum investor DCinvestor published a post on platform X, highly praising on-chain lending as a blockchain application. He described it as the most significant development in the financial sector since the establishment of central banks in the 17th/18th centuries and possibly the birth of derivatives in the 1970s/80s. However, this importance has yet to be recognized by most.
Decentralized banking services come to the forefront
Balaji Srinivasan, former Chief Technology Officer of Coinbase, also commented on this. He emphasized that on-chain lending effectively replaces the services of central banks with decentralized banking services. In this system, the setting of interest rates no longer relies on fiat currency or central banks, but is entirely determined by the market. Lenders set the price, i.e., the interest rate, and borrowers decide whether to borrow based on this rate. Under such a mechanism, the Federal Reserve or any centralized interest rate no longer exists, and the market becomes the sole decision-maker.
On-chain lending market size approaches historical highs
According to data from Token Terminal, the on-chain lending market is currently thriving, with its market size nearing historical highs. The outstanding loan amount has reached approximately $20 billion, a figure that undoubtedly further demonstrates the enormous potential and influence of on-chain lending in the financial sector.
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