Why DeFi Exists

A DeFi app says "no bank can freeze your savings here". You hold USDC in it. Who could still freeze that USDC?

• Nobody, because there is no bank involved
• Circle, the issuer of USDC
• Only the protocol's auditors

In collateralized DeFi lending, what takes the place of a credit check?

• An ID check by the protocol
• Locking up crypto worth more than you borrow
• A vote by the protocol's token holders