What types of people would use defi lending?

Hey, I’m really curious, what are the types of people (i.e. your average joe or your crypto bro who wants to buy the dip) whom would take out defi loans.

Really curious as I’ve heard and hypothesised a few interesting examples but would love to know about your opinions/experiences.

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3 thoughts on “What types of people would use defi lending?”

  1. It’s mostly people looking for leverage by depositing volatile assets, borrowing stablecoins, and buying more volatile assets. That’s why borrow rates are near an all time low

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  2. I took a Aave (V3 on Arbitrum) loan against my Eth for USDC and then used that to buy GLP on GMX.io I like that the price of GLP seems to be a lot less volatile since 50% of it is made of stable coins. The yield of the collateral ETh on Aave is more than the cost of the USDC loan so it’s basically a “free” loan. I went from daily transfers to reduce the loan balance to just compounding in GLP.

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