Coin Security Institute: Defi has three advantages of “transparency and price efficiency” compared to traditional financial products.

In the “Defi” theme report released on June 6th, the Institute of Credit Research mentioned that decentralized and unmanaged agreements offer some promising advantages compared to traditional financial products, such as: 1. Transparency and price efficiency, Because the price depends on market demand; 2. the convenience and speed of borrowing capital; 2. reviewing resistance and invariance. However, it has two disadvantages: technical risk (smart contract risk instead of counterparty risk) and low liquidity (limited to borrowing at current interest rates, but will not have a significant impact on balanced interest rates).