DeFi on Ethereum, a Used Car in Gas Later

DeFi, decentralized finance, has grown by leaps and bounds over the past year. The future of Ethereum is DeFi, but what is the state and future of DeFi itself? How will the central banks react? Here is my take.
Decentralized finance is changing the world of lending, borrowing, swapping assets, investing, insurance, and more. This is all happening in a trustless fashion via smart contracts, primarily on the Ethereum blockchain. When I realized this, perhaps a bit late, in January of 2021; I became borderline obsessed. For the first time ever, regular people can act as their own banks, lending out money, swapping assets directly with counterparties, providing or purchasing insurance coverage and other derivatives.