Banks earn far higher margins than DeFi lenders like Aave because crypto lending is dominated by leverage and yield loops, not real-economy credit. As onchain lending expands into RWAs and structured credit, margins could rise beyond crypto cycles.

Banks earn far higher margins than DeFi lenders like Aave because crypto lending is dominated by leverage and yield loops, not real-economy credit. As onchain lending expands into RWAs and structured credit, margins could rise beyond crypto cycles.
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