DeFi seeks to build an ecosystem where everyone can operate without the presence of a central authority.
It is possible that decentralized finance will develop even more
In challenging the status quo, DeFi must solve some of its own problems and build on the current foundations.
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The decentralized finance (DeFi) sector has seen massive growth in recent months, and the total value stuck in DeFi now remains around the benchmark of $ 10 billion, a real big milestone.
It’s also safe to say it’s possible DeFi will grow even further, as TVL has hit over $ 11 billion at one point this year. It is impossible to predict the dynamics of DeFi’s development, as no one could have predicted the meteoric rise that DeFi projects experienced last summer.
While it is difficult to define where the top of this sector could be, we can examine its weak points and suggest ways to improve things.
To do this, we would probably have to highlight the loopholes that clearly hamper a truly global adoption of DeFi.
Jump aboard the DeFi ship
When it comes to improvement, there has to be a clear development path that should stick to the values that brought DeFi to dance in the first place.
At its core, DeFi seeks to create an ecosystem where anyone can operate without the presence of a central authority, and where everyone works transparently and without authorization.
One of the main selling points here is that low-income people – who are isolated from the current financial system – could easily access financial services.
Unfortunately, this statement has not held up well for three reasons, so far.
Disappointing UX and overwhelming mechanics
The first is the strong knowledge barrier to entry and a complicated operating model.
Right now, most apps and exchanges seem to have been created by crypto people for crypto people, keeping newcomers in and welcoming only experienced users.
Ideally, novices shouldn’t feel overwhelmed when they step into this new space, as there is already a lot to unpack before you get ready to begin. While no one excludes the importance of search, entering difficulty does not correspond to the idea of attracting more regular users.
For a visible example, let’s take a look at the main page of Curve. It’s not a fancy place, giving off strong ’90s vibes. It doesn’t have to look shiny either, but as it stands it would be hard to imagine that many people would feel there. comfortable.
Uniswap and Balancer do a better job with it, with cleaner interfaces, but perhaps simplifying the process a bit too much.
The right balance is necessary to properly guide users. At this point, you need to put extra effort into using DeFi apps, and it can be difficult to convince users to switch to achieve mass adoption.