Summary
The article discusses the issue of DeFi’s poor capital and liquidity efficiency compared to centralized order book models. While centralized models are more efficient, they lack transparency and can lead to misuse of user funds.
Key Points
1) DeFi’s poor capital and liquidity efficiency.
2) Centralized order book models are more efficient than DeFi’s approach, but lack transparency.
3) Centralized models may allow the house to bet against its users and misappropriate user funds.