1.2 Decentralized camouflage

#1 The hidden danger of "running away at any time" in the LP pot

The core of DeFi is "decentralized liquidity", but most project parties still retain control of the LP (liquidity pool), that is, the authority to withdraw liquidity from the DEX. In this way, the project party can instantly withdraw the assets in the LP when it decides to "run away", causing the token price to plummet and the user's assets to be locked in the depleted trading pool. For example, when the market value of a imitation Olympus project reached $1 billion in 2022, the team suddenly withdrew all the LP, causing the token price to plummet by 99% and the user to lose more than $800 million. This "pseudo-decentralization" makes DeFi a centralized harvesting tool.

The "Triple Compound Risk" of LP Pots:

#2 Lack of asset self-custody capabilities

More than 95% of DeFi products (including all OlympusDAO model protocols) rely on front-end DApps as user operation entry points, but the underlying asset self-custody mechanism is not designed. If the DApps are inaccessible due to technical glitches, hacking attacks, or active shutdown by the project party, the user will completely lose the asset operation authority, and the tokens in the wallet will be reduced to "dead money on the chain". This "entry dependence" violates the core concept of Web3 that "if the user has the private key, he controls the asset" and exposes the fundamental flaws in the protocol design. ·Typical case: TITAN protocol crash in 2022, team withdrawal triggers 12-minute death spiral, 620 million dollar market value to zero ·Deeper crisis: 95% of protocols fail to decentralize the asset operation layer, users rely on the DApp front-end (potential backdoor risk), violating Web3's first law of "private key is sovereignty"