6 Real-World Instances Where DeFi Outperformed Traditional Banks

Decentralized Finance (DeFi) has been making waves in finance, offering a decentralized alternative to traditional banking systems through blockchain technology. But how does DeFi compare to these long-established institutions? Here, we explore 6 real-world instances where DeFi outperformed traditional banks, showcasing how DeFi is not just a theoretical concept, but a practical solution that is already disrupting the banking industry.

1. Peer-to-Peer Lending

One of DeFi's most significant advantages is its ability to facilitate peer-to-peer lending, eliminating the need for traditional banks. MakerDAO, for instance, allows users to borrow and lend digital assets without relying on an intermediary. Unlike traditional banks, which require extensive documentation and credit checks, MakerDAO streamlines the process, offering a more efficient and accessible lending platform. This demonstrates how DeFi can simplify lending, making it more inclusive.