The end goal for DeFi is to be the back-end for finance, not the front-end.

Head of @zksync era, venture partner @latticefund, co-founder chainstory.xyz & writer karthikoncrypto.xyz, FID 681

dApps are a composition of centralized and decentralized layers.

Wallets are one of the weakest point in decentralized UX but innovations such as MPC and others could help.

The open web is dead, long live the open web. ⌐◨-◨

Building /warpcast and /farcaster

— gabrielayuso.com

Don't think there is anything inherently wrong with custodial wallets either. The problem we're seeing is that these CEXs are gambling with people's money but if you have custodial wallets that just hold the assets and don't touch them it should be fine (there are still risks of course).

For sure, def nothing wrong with custodial wallets.

My meta point was that if defi powered finance under the hood, CEXs can't opaquely gamble with or divert user funds the way that Celsius, FTX, and others did.