‘DeFi Doesn’t Exist Anymore’ Just Onchain Finance: Andre Cronje
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Andre Cronje, founder of Flying Tulip and creator of Fantom Network, stated that most decentralized finance (DeFi) protocols are no longer truly decentralized. He claims that "true DeFi" requires decentralization, immutability, and lack of intermediaries—conditions he says are not met by the majority of current protocols. Cronje describes the current state as "onchain finance" or "open finance," where companies act as intermediaries and decision-makers.
Why it matters
Cronje’s view challenges the foundational principles of DeFi, suggesting a shift away from decentralization towards models with intermediaries similar to traditional finance. This perspective raises questions about the authenticity of many DeFi platforms and the future regulatory treatment of these entities, especially concerning decentralization standards.
Key context
Cronje has been raising concerns about DeFi’s decentralization for months, noting debates around the use of circuit breakers and emergency controls designed to protect users. The European Central Bank’s March 2024 working paper aligns with these concerns, showing significant concentration of governance tokens among a small group of holders in protocols like Aave and Uniswap, which questions their decentralization status.
Key numbers and entities
Andre Cronje, Flying Tulip, Fantom Network, Yearn.finance, Keep3r Network, Aave, MakerDAO, Ampleforth, Uniswap, European Central Bank, DeFi total value locked (TVL) dropped from $167 billion in October 2023 to $75 billion at the time of reporting (2024).
What remains unclear
The source does not flag specific open questions but implies ongoing debates about the boundary between DeFi and onchain finance, and how this affects governance and regulation. The extent to which true DeFi still exists is noted but not quantified.