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Couldn’t you make the same argument about fiat currency? Both in regular finance and in defi there exist funds that do high stakes gambles with other people’s money.

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Right but in “regular finance” you generally have a regulator who will slap you around if you advertise a product which promises 10% per year guaranteed. There are unregulated (or less regulated) things like hedge funds, but at that point you’re clearly in a fairly small market that most people cannot or do not participate in.

So what is niche, risky behaviour in traditional finance, seems to be the norm in the Wild West that is crypto.

To be clear none of this is defi, its all just traditional borrowing and lending. Aave pays 3% on USDT right now and lenders there are doing fine in defi

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