DeFi Lending: The Fintech Revolution in 3 Years 🚀💰

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Oh, the world of financial technology (Fintech) is about to get a serious makeover, and it’s all thanks to the whimsical world of decentralized finance (DeFi). 🌌 Imagine a place where loans are as easy to get as a cup of coffee, and the fees are so small, they might as well be invisible. 🤑

DeFi lending protocols, those magical smart contracts that let you lend and borrow your crypto without asking for permission, are about to steal the show. 🎭 No more dealing with a bunch of middlemen who think they’re the gatekeepers of the financial universe. 🚪

According to Merline Egalite, the co-founder of Morpho (the second-largest decentralized lending protocol, in case you were wondering), fintech companies are starting to see the light. 🌞

He shared his thoughts with CryptoMoon during an exclusive interview at EthCC 2025:

“Fintechs have realized that integrating DeFi is a strategic move. If they don’t do it, they will lag behind others because fintechs are competing on the UX and the product they give to users.”

“Fintechs are realizing that DeFi can provide a higher rate,” Egalite explained, adding that DeFi adoption can help financial institutions “provide the best financial products,” in terms of lending and trading. 📊

And just like that, the majority of global fintech firms will be knocking on DeFi’s door within the next three years. 🕒

Morpho, the crypto industry’s second-largest lending protocol, is worth over $5.5 billion in total value locked (TVL) across 20 blockchains, a mere fraction of AAVE’s industry-leading $31 billion TVL, according to DefiLlama data. 📈

But here’s the kicker: DeFi loans can be a financial lifeline for those who don’t have access to traditional banking. 🌍

DeFi’s permissionless nature helps bypass traditional banking restrictions

More and more fintech firms are waking up to the beauty of DeFi’s permissionless nature, which eliminates the need for financial intermediaries and the centralized risks that come with them. 🛡️

“So are you hooked by large banks? In DeFi, you don’t fear that because there are no intermediaries. You just trust the code itself,” Egalite said, adding a touch of sarcasm. 🤷‍♂️

While fintech firms already see the benefits, regulated yield-bearing products might just be the cherry on top, inspiring even more financial institutions to dip their toes into DeFi lending. 🍒

DeFi lending hit a new all-time high of $66.7 billion in TVL on Friday, according to DefiLlama data. 🚀

AAVE protocol’s $31.7 billion TVL currently accounts for 47% of the total DeFi lending value, while Morpho’s $5.5 billion accounts for over 8.2%. 📊

This marks a significant recovery for crypto lending, which took a nosedive in 2022 when centralized finance (CeFi) lenders like Genesis, Celsius Network, BlockFi, and Voyager filed for bankruptcy within two years as crypto valuations plummeted. 📉

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2025-07-18 13:11