The politics can't really be addressed by software, true. However, much of development is actually process and project management with complicated non-intuitive workflows. I think there's potential for software to help. do something like - for a given municipality, what size building can I build under a specific set of planning assumptions, and what is the process for obtaining the necessary permits and approvals to build that building?
I agree, Nexo/Celsius/Blockfi should not be going around saying they are "riskless". However, blocking out the majority of the general public from high yield investments is not the right move. Wealthy =/= sophisticated. If people want to take risk and get paid high yields in return for creating liquidity in emerging financial ecosystems, let them do it! Don't apply a 1930s frame work to a 21st century technology. I'm much more in favor of what Coinbase is doing - push for a seperate regulatory regime specifically designed to handle digital assets.
For all those who try to compare this to subprime, there's two big differences here. First, decentralized lending is enforced by smart contract -> the banking apps dont take credit risk because they can auto liquidate defaulter's assets and collect a 10-20% liquidation fee for doing so. Second, decentralized lending apps max out at 60% LTV. People are either going to be safe and do 30-40% leverage which protects against 33-50% drops in the value of the collateral, or they are going get liquidated at 60%. There's no too big to fail here.