Aave and other DeFi lenders increasingly position themselves as viable alternatives to traditional banks. One useful comparison is net interest margin (NIM) — the share of borrower interest kept by the platform. Aave’s NIM has historically ranged from ~0.3% to 1.3%. Large U.S. banks typically operate with NIMs greater that 2%, and regional/community banks often exceed 3% (Fed St. Louis). From a depositor’s perspective, a low NIM is exactly what you want — more of the lending spread flows to suppliers instead of being captured as platform margin. That’s a fundamental structural advantage DeFi lending protocols like Aave have over traditional banks.