A panel at Consensus Hong Kong 2026 argued that most DeFi protocols must pass through a pragmatic, temporarily centralized “incubation phase” before they can safely decentralize.
Industry leaders said institutional adoption will require professional, rule-based infrastructure that sacrifices some early-stage decentralization so protocols can mature and withstand scrutiny from global financial markets.
Anand Gomes, head of Paradigm and Paradex, dismissed the idea of binary decentralization, instead framing the current state of most protocols as a necessary "incubation phase."
Gomes famously likened the role of a protocol founder to that of a parent. "You want your kids to be strong and independent once they grow up," he explained, "but that doesn't mean you leave them unattended in their infancy.
DeFi proponents are now openly discussing the necessity of using centralized control mechanisms during the initial months (which could extend indefinitely). If centralization is essential, then why promote DeFi in the first place?
Nowadays, investors are really hooked on DeFi projects, and from what I can see, Aerodrome.finance is one of their top picks. Platforms like this are a huge hit with long-term investors.
If your assets are earning at least 5% APR or more and the TVL is high, you wouldn't really doubt the project as an investor, especially with that kind of liquidity, right?
Although, of course, the risk is always there.
