Recently, I took a walk through a bank and looked at those loan interest rate terms, and I couldn't help but shake my head.

In the traditional economy, how difficult is it to get a loan? Filling out forms, checking credit reports, mortgaging property—only then will the bank offer you an interest rate of 4%-6%. If it's a credit loan? They’ll just add 10% on top. Hard work, and still being exploited.

But look at the story on the Web3 side, and it's completely different.

Suppose you hold BNB and want to lend out stablecoins. No forms to fill out, no proof of identity, no credit blemishes—just lock BNB into a smart contract, and in seconds, you can borrow USD1 at an annualized rate of 0.41%. In other words, borrowing $10,000 for a year costs only $41 in interest. This number, in traditional finance, can't even cover a single transfer fee.

This is called a dimensionality reduction attack.

Why is it so cheap? Because the underlying logic is completely different. Traditional banks need to absorb deposits and then pay deposit interest, making money from the interest spread. But stablecoin protocols based on collateralization don't need the role of "depositors" at all, so there's no burden of deposit interest, and borrowing costs are automatically pushed to the floor. Code replaces manual labor, and efficiency skyrockets.

Now, with BNB fluctuating around $880, I hear that many real-world business owners are collateralizing their BNB to borrow stablecoins, converting them into cash to pay wages and purchase supplies. Why? Because the capital cost here is almost zero, and it's ridiculously cheaper than traditional financing.

This is not just a lending tool; it's an evolution of capital efficiency. Those still only watching the price fluctuations of coins probably haven't understood what Web3 is truly changing. The real value lies in this revolution in funding costs.