‘DeFi doesn’t exist anymore,’ just onchain finance: Andre Cronje
Flying Tulip founder Andre Cronje contends that DeFi protocols have evolved into a new financial paradigm of “onchain finance,” but have sacrificed some of their inherent immutability and decentralization.
Andre Cronje, the founder of DeFi platform Flying Tulip and technical architect behind Fantom’s working network, believes that DeFi has evolved into a new financial paradigm called "onchain finance or open finance." In his opinion, most DeFi protocols are no longer truly decentralized, immutable, and intermediary-free. Cronje argues that traditional banking-like elements, such as decision-makers, curators, and risk committees, have replaced the decentralized nature of DeFi.
He claims that true DeFi still exists in small niches but acknowledges that it's rare. Cronje's views align with the European Central Bank's concerns about the decentralization of DAOs, as they found that the top 100 governance token holders controlled over 80% of the supply in various DeFi protocols. Despite his concerns, Cronje still sees innovation in some DeFi projects.
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