[web3isgoing]

One failure of FTX and BlockFi is that users had no way to ensure that the centralized custodian was not running off with their on-chain deposits by directing them into unsound deposits. Vitalik is suggesting a cryptographic mechanism here that would provide better transparency as to on-chain activity of a CEX.

Day traders want to trade, no matter how much you try to tell them their trades are fictional or "have no use cases."