There is currently a lot written about DeFi (Decentralized Finance) in contexts that describe fully centralized entities.
Complete decentralization is very difficult, not to say almost impossible, which is why I propose the concept of MvD: Minimum viable Decentralization.
For example, if a DeFi protocol on Ethereum offers centralized services or distributes centralized products, it is not DeFi in my point of view. Even if the protocol itself is decentralized but depends on centralized services (e.g. oracles, off-chain collateral or market makers), this is not sufficient to be considered decentralized. Also if the controlling DAO tokens are not sufficiently distributed, it is centralized.
Drawing the line is not an easy task, but I think the protocol must not depend on individuals or a central entity to function. Nor may it be controlled by the same. If that’s the case (dependence or control by a central body or person) it is Traditional Finance (TraFi) on a public Blockchain and needs to be regulated accordingly.