I hate how some people think CeFi is “cheap”. You’re saving up on fees sure, but custody is a much more expensive price to pay.

Full custody/decentralization is like a weapon you keep under your bed, 99% of the time it doesn’t matter if you have it or not, but get caught lacking one time and you’re scr#wed.

Similarly, decentralization “doesnt really matter” until that one moment where it does kind of like what happened to the poor people who invested in Celsius.

Yeah, centralized finance is a much cheaper alternative than DeFi but you’re paying the huge cost of not having full custody over your funds.

If you think about it, centralized crypto platforms are no different than any traditional financial institution in the real world. The main difference is that those institutions work with fiat and digital currency, while centralized crypto exchanges mainly work with cryptocurrencies.

But the fact remains that they’re similar in the sense that both have ultimate control over your funds at the end of the day.

And you know what? I think the “I use CeFi because DeFi is expensive” narrative is getting outdated with the major developments we’re seeing in the L2 sector.

Many L2s are reshaping the DeFi world with some like Loopring pressing barely any fees and others like Zksync with a zkEVM testnet already live. They’re even developing a DAO specific scaling solution in collaboration with BitDAO which would technically mean all sorts of DeFi sectors are getting tackled.

So what’s really the excuse?

I just think that the vast majority of CeFi users are simply lazy and don’t want to learn about how DeFi works because if they did they’d see the major benefits they can get from DeFi over CeFi including much higher APY on average, much larger coin diversity, and most importantly FULL CUSTODY!!!