Cronje Ditches DeFi: 'Onchain Finance' Is the New Reality

Andre Cronje, the developer behind Yearn Finance, is advocating for a shift in terminology to describe decentralized finance (DeFi) protocols. In his opinion, these systems have evolved into something fundamentally different from their original form: 'onchain finance.'

Cronje points out that modern DeFi protocols now resemble traditional finance more than the immutable, teamless, and permissionless systems of 2020. They often have paid development teams, upgradeable smart contracts, operational infrastructure, and governance structures.

A prime example is Cronje's current project, Flying Tulip, which combines collateral management, lending, trading, perpetual contracts, insurance, and a stablecoin called ftUSD into a single platform. The project secured $200 million in funding at a $1 billion valuation last September and is reportedly on track to raise an additional $800 million through public token sales.

Cronje argues that acknowledging the realities of these systems, rather than hiding behind the DeFi label, is essential for rebuilding user confidence. He believes users should be aware of features such as withdrawal queues and timelocked multisig controls, which can be seen as centralization risks by some.