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I recently heard a quote that addressed the seemingly ponzi-like yields in DeFi: "the profits for providing liquidity are now distributed to users instead of companies".

It made me wonder, what companies in TradFi are the ones providing liquidity? Is that all they do?

Tyler Kim
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Sounds like they were referring to banks. The companies (banks) don't provide liquidity, they just earn the profits from the liquidity the users provide.

Meriadoc
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