So this is something that has genuinely bothered the hell out of me.

People at My local meetup and even on nostr unfortunately have been excited about these Bitcoin backed loans. And maybe my view is completely distorted here, but aren't we just recreating Fiat 2.0 and giving more opportunities for regulatory capture to happen to Bitcoin?

I thought the whole purpose of Bitcoin was to build something better. Not just recreate shitty fiat mechanisms. People applaud it as calling it adoption, but it just seems like steps backwards to me.