Zhu Su: CeDeFi is the biggest bearish factor for Ethereum, turning a large amount of open-source code into closed-source code running on a single server

Zhu Su, the co-founder of Three Arrows Capital, stated that the rise of CeDeFi is the biggest bearish factor for Ethereum because it means a large amount of business logic, which was originally expected to run as open-source smart contracts on distributed networks, has actually become closed-source code running on single servers.

Zhu Su believes that Ethereum needs to embrace use cases that benefit from global distributed computing and anti-censorship features, including some cypherpunk-style applications (such as privacy protection) and low-hanging fruits yet to be developed.

He pointed out that if Ethereum itself performs poorly, decentralized finance will struggle to rise again. This is because in a world where validator decentralization and demand for smart contracts are low, people can choose off-chain operations to save time and money.