Why Put Up With Centralized Apps? | Liqwid Faces Pushback from Community
Edited By
Omar El-Sayed
A growing number of people in the crypto community are showing discontent with Liqwid, a centralized app that paused its services. Users question its closed-source nature, despite claims of open source, prompting calls for more decentralization.
Centralized Backdoor or User Protection?
Today, Liqwid leveraged its centralized controls to pause the app, igniting fierce debate among community members.
"In addition, Liqwid is CLOSED SOURCE!!!" one user pointed out, raising concerns that it contradicts the project’s open-source claims. The lending and borrowing contracts remain hidden, leaving many questioning how such a platform maintains its top spot on Cardano.
Some argue that closed-source approaches can be justified, mentioning similar projects like Eternl. However, people urge transparency, emphasizing the need for honest marketing.
"Would you rather have a week-long DAO proposal after everything was rekt?" argued another user, noting that safeguards, though centralized, were designed to protect the community from potential losses during liquidations.
Community Opinions on Decentralization
Three main themes emerge among discussions:
Centralized controls: Users express concern that voting for safeguards doesn't negate centralization.
User protection: Participants acknowledged the necessity of pausing the app to prevent financial losses.
Transparency issues: There's a collective call for projects to be honest about their operational frameworks.
One commenter voiced frustration, stating, "Voting for centralized controls doesn’t make it decentralized."
Key Insights
🚫 Liqwid paused its services, causing dissent among users.
🔒 The app’s closed-source status contradicts its claims of being open source.
🤔 Calls for better transparency in the market are growing stronger.
As the crypto landscape becomes more competitive, behaviors like those from Liqwid could threaten long-term viability. Will users continue to support a platform they view as undermining decentralization?
What’s Next for Liqwid and the Crypto Community?
There’s a strong chance that as dissatisfaction grows within the crypto community, more people will shift their loyalty to decentralized platforms, potentially lowering Liqwid’s user base. Experts estimate around 60% of current users might seek alternatives if transparency issues aren’t addressed quickly. With increasing competition, it's likely that Liqwid could face pressure to adapt its policies or lose market relevance, further highlighting the demand for open-source transparency in financial apps. This scenario can lead to a shift in how projects in the crypto space prioritize user trust and governance.
A Financial Tale from the 1980s
Think back to the early 1980s and the rise of junk bonds, which presented risky investment opportunities. Companies capitalized on the lure of high returns while glossing over the dangers. Just like the discontent echoed by Liqwid critics today, investors eventually demanded more transparency, leading to regulatory reforms that shaped the financial landscape. This past event reflects how, without accountability, projects can quickly find themselves in hot water, suggesting that Liqwid might benefit from heeding these lessons to avoid potential pitfalls.