Summarising Decentralised Finance
Now we have seen some of the opportunities and potential of Decentralised Finance (Defi). Some of those opportunities are the applications of traditional banking services like borrowing and lending; with all the advantages of smart contracts operating on the blockchain. We have also seen some Defi projects like Terra which proves that Defi is not totally risk free. However we can now use the knowledge we have gained from these now seemingly fraudulent projects and be more cynical with future Defi projects. We have also seen how Scallop is planning to integrate Defi into its ecosystem.

Here are some question about Defi:

All loans are over-collateralised, so the is no incentive to default the loan.
The equivalent tokens of your collateral that can be freely moved, traded and used on other dApps
Real estate assets tend to be relatively secure investments. Usually significant sums are required to invest. Real estate assets are easily comparable and they are famously illiquid investment. All these factors of real estate lend themselves to tokenisation.
You can swap them on protocols that are WBTC partners like Coinlist, Poloniex and Deversifi.
Terra is a blockchain protocol supported by algorithmic stablecoins (TerraUSD or UST). This is pegged against another stablecoin LUNA. Terra used these coins to promise a rate of return of 20% annually for your investment; which a very high rate of return in a stable ecosystem.
The Ethereum network allows smart contracts and dApps to operate on its blockchain which creates its own ecosystem in other words Decentralised Finance (Defi). In comparison the Bitcoin network does not support these services.