[lottin]

If I lend you 1 ETH, I have no means to make you pay me back. Smart contracts can't do that either. A smart contract cannot seize 1 ETH from your wallet and send it back to my wallet. Blockchains are designed specifically to prevent that.

[carlosdp]

That's not true, you can definitely do this with a smart contract blockchain like Ethereum, and there are plenty of loan protocols already that do this in production with $ billions in assets transacted.

No one can steal your ETH from your wallet, but they can liquidate your staked collateral held by the smart contract.

[lottin]

If the collateral is "held by a smart contract" it means your buying power hasn't changed and you haven't financed anything.