Is the DeFi Lending Model Broken? A Look at its Challenges and Future

DeFi lending platforms have revolutionized financial accessibility by offering decentralized, permissionless access to loans and borrowing mechanisms. However, this system faces inherent challenges that may hinder its potential for widespread adoption. This article explores these challenges, focusing on overcollateralization, vulnerability to attacks, and the lack of real-world use cases, ultimately asking if the DeFi lending model is broken or just evolving.