You need a good credit score, huge collateral and extensive paperwork to get a loan from a bank at high interest rates. With AAVE you can be done with a couple clicks.

If this doesn’t show the inefficiency of banks when put up against DeFi then I don’t know what will.

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Smart contracts will almost always beat the faulty, inefficient human factor.

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This is exactly why I firmly believe that, even though it will take many years, DeFi will eventually take over many of the financial institutions that we use on a daily basis especially if we keep up this pace.

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This reality shouldn’t be too far fetched. We’re already seeing a lot of advances in DeFi from projects like AAVE and newer ones like BitDAO investing hundreds of millions of dollars into the DeFi space for better development.

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I don’t think that banks will simply “disappear” but they sure will eventually lose a lot of power.

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