> It's a new era of finance

I have no experience with crypto, but this I don't understand.

> DeFi is unlocking the value of an asset, making it liquid...

Like a mortgage or a bond issuance (bonds are secured against assets of the corporation)?

> Credit is loaning you money and providing an interest rate. Usually something insane like 15%.

Average rate for a 30-year fixed mortgage in the US is about 4%[1]. Average Aaa corporate bond yield is 3.43%[2]. I guess that you are talking about interest rate on credit cards? I think that credit card debt is pretty small compared to the size of the mortgage or bond markets.

> One example is on Kaurura...

I'm not sure I follow you here, but it sounds like you get a loan at 19% APR against some collateral. Then you use the loan as capital for some other investment at a higher rate of return.

My question: how is this any different, for example, from a company issuing bonds at 4% coupon rate and using the proceeds to fund operations when the company's profit margin is, say, 50%?

Let's say it's a matter of scale; I, as a person, can't issue bonds to trade on a public market. But I can get a mortgage and invest in other stuff hopefully at a return higher than the rate on the loan.

As I said, I don't understand how this is a "new era of finance".

[1] https://www.valuepenguin.com/mortgages/average-mortgage-rate....

[2] https://fred.stlouisfed.org/series/AAA

user:	iboisvert
created:	November 27, 2018
karma:	22