Currently, CeDeFi’s main downside is the high learning curve associated with its protocols because of their complexity. The concept is still young, and more intuitive and user-friendly interfaces are bound to emerge over time.
CeDeFi also relies heavily on Ethereum, given that most CeDeFi protocols are still built on the Ethereum blockchain. If Ethereum fails, CeDeFi will likely fail as well. However, this risk is mitigated by the fact that other blockchains are beginning to adopt CeDeFi protocols.