Layer 2 Trade-offs

Layer 2 solutions present a complex trade-off between user control and centralized oversight, as highlighted by the Sonium case. Vitalik emphasizes the flexibility of these systems, allowing for varying degrees of centralization. The conversation also touches on Coinbase's innovative use of Morpho for Bitcoin loans, dubbed the "DeFi mullet," and the intriguing developments surrounding Tether's move to El Salvador.