Aave is bank-sized, but $2.9T in corporate loans reveals the risk DeFi still can’t price
CryptoSlate
Traditional banks dominate corporate lending with $2.9 trillion in loans, highlighting DeFi's current inability to price business-specific repayment and credit risks.Summary
While Aave has grown to a scale comparable to mid-sized banks, its $10.9 billion active loan book remains dwarfed by the $2.89 trillion in U.S. commercial and industrial bank loans. The fundamental divide lies in risk assessment: DeFi protocols rely on overcollateralization and automated liquidations, which are unsuitable for corporate borrowers who need capital based on cash flows and business fundamentals. Currently, DeFi lacks the necessary infrastructure for legal enforceability, underwriting, and covenant monitoring required to compete in the broader corporate credit market, relegating on-chain credit to a small fraction of the total lending landscape.
(Source：CryptoSlate)