Andre Cronje: DeFi Has Evolved into On-Chain Finance

Andre Cronje, founder of the DeFi platform Flying Tulip and creator of the Fantom Network, stated that most DeFi protocols are no longer truly decentralized, with only a few niche areas still deserving the DeFi label. He believes that DeFi has evolved into on-chain finance or open finance. Cronje pointed out that true DeFi should possess characteristics such as decentralization, immutability, and the absence of intermediaries, whereas most current protocols have intermediaries that have become companies, taking on the roles of traditional financial institutions. Nevertheless, some protocols are still innovating. Data from DefiLlama shows that the total value locked in DeFi has dropped from $167 billion in early October 2022 to $75 billion over the past 10 months, a decline of more than half. A working paper released by the European Central Bank in March analyzed Aave, MakerDAO, Ampleforth, and Uniswap, finding that the top 100 addresses holding governance tokens control over 80% of the token supply, raising questions about the decentralization of these DAOs and whether they should continue to be regarded as fully decentralized services not subject to the "Crypto Asset Market Regulation Act."

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