An overview of what is happening in the crypto markets, summarised daily by Crypto Finance AG Senior Trader Patrick Heusser in the market commentary.
I got very excited when I read the following news: Crypto finance firm Swipe launches Visa DeFi lending card
I thought to myself: this is a nice first step in the mass adoption of DeFi concepts bridging over into everyday financial interactions.
However, the news post published by Cointelegraph is not very insightful, which led me to the LendFi page.
In the end, this confused me even more. LendFi looks like a micro borrowing/lending platform. I see no direct connection to the DeFi project Compound ($COMP). Also, the borrowers on LendFi do it uncollateralised, which is very unusual for DeFi. In fact, there is no protocol that comes to mind which does that.
A quick look at the rates/pricing page clarifies things to some extent. The APR rates go from 169% up to 1,825%. Scroll down to the section “Disclosure of Fees Including the APR” on the “Small Dollar Loans”. That is just crazy. To me, this is a clear indication that only people who are already totally broke would go and borrow at such conditions.
My conclusion: this will not benefit the adoption of DeFi in our everyday lives, but rather ultimately generate some bad press, when people start drowning in debt and screaming for help.