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Written by: Andrew LIU

Introduction: DeFi lending platforms are a historical inevitability.

In ancient Greece thousands of years ago, people (including Aristotle) believed that charging interest on loans was dirty and contrary to the will of the gods. But just a few hundred years later, this limitation was broken, and the existence of loan interest was accepted.

Lending relationships originally occurred between individuals, making them inherently decentralized. With the emergence of governments and banks, centralized lending was subsequently created. The advantages of centralized lending mainly lie in the ability of a third party, outside the lending parties, to handle default situations based on fair and just rules, but this is not the reason for its long-term existence. The long-term existence of centralized lending is precisely because people have 'inabilities' in the original decentralized lending relationships: