New platforms are allowing users to lend and borrow cryptocurrencies for profit — and threatening to make traditional financial intermediaries obsolete.

Decent article on lending bitcoin, altcoins, or stablecoins out. The conclusion at the bottom is the money shot:

“At the end of the day, DeFi is still a far more dangerous spot to park your money with risks not well-understood by the average investor. All DeFi protocols run the risk of software bugs and/or copycats that can, in the worst case, drain liquidity completely. In addition, there is obviously no FDIC insurance protecting the deposits.”