The traditional banking model, to put it simply, is all about bundling functions like deposits, loans, transfers, and wealth management together, leaving users with no choice but to passively accept it. This approach has many issues, with extremely high operational costs and hefty profit margins from interest rate spreads. From start to finish, we have always been followers, with no real control.

Now, the situation has changed. The current DeFi ecosystem is ushering in a wave of "modularization" of financial services—simply put, breaking down the once monolithic functions into independent Lego-like blocks, allowing you to assemble what you need. Use the features you want, skip what you don’t, which not only improves efficiency but also significantly reduces costs.

Taking the USD1 stablecoin ecosystem as an example, the entire logic has been completely redesigned:

The deposit process is no longer a passive wait for interest. Now, you deposit assets directly to generate a credit limit; the assets themselves serve as your deposit proof, giving you full control. The bank reallocating your money? That’s no longer a thing.

Loans no longer require waiting for bank approval. The permissionless, algorithmically priced P2C model allows borrowers and lenders to automatically match through smart contracts, with no intermediaries causing delays. It’s fast and fully transparent.

The payment process has also completely broken through the walls of traditional finance. Stablecoins borrowed within this ecosystem can directly enter the entire crypto payment network, making operations simple and settlements quick. This is true financial autonomy.