Kiwi Farms

Sorry if I'm being a fucking n00b about this but how the hell it gives such insane results? thing is completely unregulated, how can you even know if you're not putting your money on a ponzi?

And what is crypto being borrowed for? day traders? speculative biz? methheads needing funds for a new lab?

How does the system controls the allocation of collateral in case of default? are the smart contracts involved audited? by who?

What prevents whoever starts a defi fund from just taking the money from the pool and run?