Lava Abandons Self-Custody Amidst Fund Raise, Sparking Controversy

Lava has abandoned its self-custody model amidst a fundraising effort, leading to significant controversy within the Bitcoin decentralized finance (DeFi) community. This shift from decentralized contracts to a more trusted fintech approach has raised concerns about unlicensed lending practices, reminiscent of previous centralized failures in the cryptocurrency space. The situation highlights underlying tensions in Bitcoin DeFi, as stakeholders grapple with the implications of Lava's strategic pivot.