Banks take advantage of people’s low knowledge in finance. That’s how they get away with such low APYs

This is also why people in general think DeFi is complicated, cause they never had to learn how finance works.

DeFi is veryyyy similar to banking and financial institutions just slap on much higher APY numbers and you’re good. Ask any bank of finance employee and they’ll agree to a very close degree.

Banks take full advantage of that. But even if they didn’t and if they perform at their top and optimal performance, DeFi would still outperform them.

How will banks with clunky hierarchal systems and so many expenses compete with the 15% and 20% APYs of platforms like Yearn, Yield App and Pickle? Or near zero interest leading from AAVE or MilkywayEx.

This is why banks are suddenly so pressed about DeFi. It’s slowly but surely taking away all its potential customers that were supposed to be sheep.