Are you sure you're not committing a flaw here by assuming that lenders need to borrow the maximum allowed amounts? Why not just borrow $500 or $1000? Also, I would say that (at least for now) the demand for loans against cryptos is likely to be higher than it would otherwise be, due to higher reluctance to sell crypto for various reasons. (Anticipation of rising prices, not wanting to sell at that moment for tax reasons, ensuring they have enough of a certain token to stake (w/proof of stake), etc.)

The $25 thing might be off and need to change I agree, but I'm not sure if any of this means that the business itself won't be successful. They're also among the first to the market, which usually counts for something. Are the tokens themselves necessary? I'm not so sure about that either, but I'm also not sure that it matters at the stage the industry is at now.