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Key Challenges & Solution
In the recent year of cryptocurrency adoption, decentralized finance (DeFi) projects have gained popularity. Applying blockchain-based distributed ledgers, these solutions streamline financial systems and transactions. In its early stage of adoption, the DeFi infrastructure is far from being stable, relying on a consensus to verify data collected and aggerated from various distributed databases.
Contrary to popular opinion, DeFi infrastructure does not offer total anonymity. The blockchain being a public ledger means that everything is traceable by governments, law enforcement, and other parties of interest – including and not limited to bad actors. The unregulated nature of the technology makes it prone to infrastructural failure, hacks, and in most cases, fraud. This increases the need to educate everyone, from novice investors to seasoned traders.
Battling fraud seems like exhaustive work in crypto. A lot have tried and failed. The ability to adapt and anticipate becomes vital to create tools that are, not only packed with useful features, but also easy to use and don't intimidate users from exploring its potentials. This is key to promote healthy habits of DOYR within the crypto community.
We believe that transparency should be the core of any DeFi project. With that in mind, our approach to risk and its mitigation is by building DeFi ecosystem based on data. From our experience in the industry, we understand that the capability to trace and analyze public ledgers can be difficult and overwhelming - even for seasoned traders and Investors.
Being able to offer data visualization becomes the most obvious solution as a tool for mass dissemination on any DeFi projects specifically and blockchain technology in general. With any established financial system, reaching mass adoption is the key to making it sustainable in the long term. Accessible through dApps, a pleasant UI/UX experience that is simple and beginner-friendly is a must.
Going back to mass adoption, a DeFi project must have utilities that are tangible and offer real-life economic value, adding value to anyone who is invested in the development of the project – albeit not exactly in the traditional sense of “investor” as in crypto, the dynamic will depend on the type of project invested.