to summarize the forum chitchat in the link ..

2 different types of lending -- type a, you lend to them, with no collateral (Celsius, nexo.... also ps, traditional bank savings account) -- type b, they lend to you, but with collateral (typical collateralized Bitcoin for USD ready cash loan.)

guess which kind is safer?

uncollateralized lending is for chumps.

And PS in case you missed it the first time, a regular demand deposit bank account is just an uncollateralized loan.

Playing around in the crypto schmecosystem sure makes some things more obvious doesn't it?