Introduction
DeFi has seen exponential growth since the 2021 bull run. Yet we have some major challenges restricting its usability due to complex interfaces. This article will shed some light on the challenges DeFI faces and improvements/solutions that are being worked on. Is there any progress? Let’s find out together…
NFA Notice: Nothing in this Article is financial advice but rather for educational purposes.
The current DeFi interfaces and user experience: UNMASKING DEFI UI/UX.
The state and quality of a service website can start as not so good. It can also build up over time if the services are being used and it generates more value. The website will get better in line with the value generated by the service providers, concerning time and demand.
In 2020 there was just about $815m locked in total value for DeFi. A year before that there was just over $300m locked. Despite being complex to use, DeFi has grown massively. And I expect the user interfaces and experience to be poorer as we go back in time. So in a nutshell the quality of the services will also grow and become more quality-based as it grows and keeps generating value. DeFi websites were not perfect 4-5 years ago and can’t be perfect now, but there have been changes. The best part is that there have been innovations and agreements with centralized exchanges that will make DeFi easy to use for the average retail investor.
Major challenges with DeFi platforms(some are past issues that now have solutions).
- Complicated for an average person to understand and use.
- Smart contracts do have bugs which can result in loss of funds
- Not so decentralized
- Newbies find it difficult to move money from their banks to buy crypto
These issues if not solved will hamper the growth of the DeFi ecosystem. But you would be surprised to see the total value locked in DeFi in 2024. Despite just ending the bear cycle and at the pre-bullrun season, the DeFi ecosystem has a whooping $57.785B locked. Source: DefiLama. This is why UNMASKING DEFI UI/UX is a must, so we can see that there are changes being made.
Major upgrades to DeFi platforms to UNMASKING DEFI UI/UX..
- Creation and sponsoring of educational materials to guide new DeFi users.
- DeFi insurance projects for cases of funds lost to bugs in smart contracts
- Some DeFi platforms now offer the buy crypto from banks option
- Trading derivatives on DeFi.
conclusion.
These innovations are not easily achieved due to many regulations on crypto by governments across the globe. But that has continued the growth. In a matter of time, maybe a couple of years DeFi will be perfect.
If you have stuck with me this far then I commend you. Kindly check out Crypto University to learn from our variety of courses on DeFi
