I’ve had this argument way too many times…
Federated is a nicer word for custodial, it’s just custodied by multiple members (I think something like 15 in Liquids case). If these 15 members (or the majority of them) decide to move the funds from the onchain account controlling the btc that backs L-btc, there’s nothing L-btc holders can do. They’re completely at the mercy of the federation that custodies their btc.
This is not to say Liquid is bad or has been a waste of time. I have the utmost respect for the people who have and continue to build it!
I just think it’s important to be honest about the tradeoffs (Arkade has them too).
I personally think Arkade would be more interesting for this purpose but I’m more than happy to he proven wrong. Also, I know the protocol is early and will most likely experience a lot of growing pains in the future!
