Except it's not at all. You can take synthetic TSLA shares and deposit those as collateral to mint stablecoins as a loan. Where else can you do that from your web browser at 10am on a Sunday and confirmed in 30 seconds?
I've always thought the retail lending side of DeFi was silly. The risk is too high. Screenshot this, mortgage backed securities will be the first major success of blockchain debt based products.
The problem with loans generally isn't that you can have one at 10Am on a Sunday morning.