DeFi Fumbled Its Post-FTX Advantage in 2023, but There’s Still Hope for 2024

Essentially, this boils down to the issue of DeFi’s poor capital and liquidity efficiency. Without getting too deep into the technical aspects, centralized order book models are infinitely more efficient than DeFi’s approach, but lack transparency. With such models, it’s very easy for the house to be betting against its users, and even misappropriating user funds.