With the liquidity baking implemented and in use now, it may be important to use this time to understand how to implement future functionality to the Tezos Blockchain. I have been reading through the threads regarding LB it seems there is some consensus that there is an issue with how tzBTC is managed and minted. The ownership of tzBTC especially on the minting side is managed by a third party which can be an issue if they decide to stop cooperating or responding to individuals who want to make use of LB to it’s fullest potential.
I think for any future feature implementation, it may be better to not rely on any third party. Just as an example, if tzBTC minting was implemented on the Tezos blockchain itself, this could be a non issue. I know this example may not be the best since there are laws in certain countries that require KYC for buying BTC, but if that is the case then maybe some form of decentralized identification could be implemented into the blockchain on the layer 1 solution and be required to buy or mint tzBTC.
Ensuring everything stays first party will prevent anyone from stalling functionality and will keep the power decentralized and democratized. It will also mean updates can be done much quicker and without having to wait from a third party if they need to cooperate when making changes.