DeFi is no longer decentralized — compliance is undermining decentralization

DeFi’s promise of decentralized finance is being undermined by increasing compliance measures, leading to potential censorship and loss of user control.

Opinion by: Artem Tolkachev, Web3 investor

When decentralized finance (DeFi) first emerged, the core idea was simple: financial freedom, transparency and the absence of centralized control. Smart contracts were meant to replace banks, liquidity was to be distributed globally, and users were supposed to have complete control over their funds. 

It sounded like a dream. People embraced that dream, adopting DeFi despite technical issues, poor UX and low liquidity. In the last two years, DeFi has evolved significantly, addressing most of its significant problems. 

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