Charlie Lee, founder of Litecoin (LTC), does not believe in decentralized finance DEFI
by John Smith 
Following the recent problems encountered by bZx and its Fulcrum and Synthetix dApps focused on decentralized finance and margin lending, the founder of Litecoin LTC highlights the centralized aspect of these applications which claim to be decentralized.
Protocol breaches in Fulcrum and Synthetix cost bZx about $1 million.
Charlie Lee is straight forward saying that it’s the worst of both worlds.
This is why I don't believe in DeFi. It's the worst of both worlds. Most DeFi can be shut down by a centralized party, so it's just decentralization theatre. And yet no one can undo a hack or exploit unless we add more centralization.
So how is this better than what we have now? https://t.co/F1HMSeqb6q
— Charlie Lee [LTC⚡] (@SatoshiLite) February 16, 2020
Decentralized finance is only in its infancy stage and the first cryptocurrencies like Bitcoin or Ethereum also suffered from problems at the beginning.
The Ethereum blockchain arose from a problem of theft of tokens on the blockchain which then gave birth to Ethereum and Ethereum Classic for example.
DEFI, as this decentralized finance is also called, is booming and naturally attracts hackers and other cybercriminal crooks, most of this market is functioning normally and flaws in the bZx Ethereum protocol are essentially the reason for these losses.
Charlie Lee criticizes the non-decentralized aspect of these dApps which can be stopped at any time but it is DApps, not a network like Ethereum or IOTA for example which completely blocked transactions on its blockchain following a recent hack…
The founder of Litecoin does not like decentralized finance perhaps because it works mainly with Ethereum ETH, DAI, Makerdao and therefore overshadows his LTC cryptocurrency which is not particularly useful in the blockchain ecosystem.
He at least opened the debate and attracted many comments on this subject.
