DeFi has had a rough two years. During the halcyon days of DeFi Summer 2020, it promised to build an alternative to banks and the traditional financial system. Two years later, bad actors have stolen billions of dollars through a series of hacks, scams, and pyramid schemes and many are questioning how decentralized DeFi really is -- or ever was.

Returning to the word “decentralized,” many critics now view the descriptor as misleading. Is a DeFi protocol actually decentralized if it has, say, fewer than 50 liquidity providers, fewer than 50 controlling voters, or fewer than 50 Discord participants? What about if it has fewer than 50 GitHub commits or fewer than 50 administrators selecting governance topics and tabulating Snapshot.org votes?

By any of those standards, only a small handful of DeFi protocols would qualify.

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