Interests lower

Interest rates in a lending pool are typically much lower than the 100% APY often seen in other borrowing scenarios. This is because interest rates in a peer-to-pool system are adjusted block by block, ensuring there is always sufficient liquidity available for borrowers.

Peer-to-pool lending is also more attractive to institutional investors. They can contribute significant amounts of capital to the pool without the complexities of managing multiple loans, as is common in peer-to-peer lending. Even a 20-30% APY for Bitcoin remains highly competitive in this context.