Am I missing something about crypto lending? Your deposit can't be FDIC insured and if borrowers are defaulting that means your deposit disappears. You can't bailout a crypto bank by printing crypto.
The appreciation of Bitcoin has been so staggering that it also makes getting interest back on your deposits seem rather outdated.
Bitcoin banks have been tried and failed, I should know the US department of Justice sent me victim notification emails about it for years.
Take it from someone who has operated in this space long enough to beware of interest rates on crypto, the money has to come from somewhere to cover the vig
Fractional reserve banking is the thing that is to be avoided and ultimately fails.
The appreciation of Bitcoin has been so staggering that it also makes getting interest back on your deposits seem rather outdated.