DeFi is fundamentally more dangerous than centralized lending. While enthusiasts claim smart contracts eliminate human error, the $292 million KelpDAO exploit proves that "composability risk" can collapse the entire system in an instant. Meanwhile, a centralized, Bitcoin-only model just earned an investment-grade rating from S&P Global with zero losses over eight years. It turns out trusting a company is safer than trusting code. Is DeFi's lack of counterparty risk actually worth the constant threat of total loss?
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