- This topic has 0 replies, 1 voice, and was last updated 2 months ago by DeliciousNectarine8.
- Tuesday, October 4th, 2022 at 11:06 #386780DeliciousNectarine8Participant
Decentralized finance is inherently built in a way that is hard to navigate and is not the most user-friendly financial system to work with. It also doesn’t help that you need weeks of research about pools, impressment loss, arbitrage and much more to slightly start understanding what you’re doing. Overall you have to be pretty knowledgeable to know exactly you’re doing for you to navigate your way especially considering that any mistake is most probably permanent and can’t be fixed.
This might be one of the major reasons why a lot of people opt for CeFi instead because with CeFi literally anyone can start investing. The UX and entire user experience is much easier and user-friendly overall.
This is extremely bad news for DeFi and crypto as a whole because centralized finance is basically just baking but with cryptocurrencies involved. It really isnt that different than working with credit cards and savings accounts.
Decentralization is the essence of this market. You have full custody and control over you hard earned money and no authority can seize/block your funds.
This is not mentioning all the perks that come with decentralization as well most important of which is self governance.
You can shape up the platform you invest and have a voice as a share holder through voting, something that isn’t available with CeFi
AAVE holder are in the process of voting to create their own stablecoin kind of like what MakerDAO did with DAI.
Other major DAOs like BitDAO are in the process of voting to created a new L1 where the tokens will not have much more utilities to be implemented.
I would hate to see platforms like these start losing popularity because of a UX that isnt user welcoming.
I think that it is indeed a hard task to tackle but we’ve tackled way harder and more difficult problems in the DeFi and crypto world as a whole.
If we ever want to see DeFi go mainstream then the DeFi space as a whole should gather around and join forces to solve this user issue because while CeFi TVL is still lower than that of DeFi’s, this could change if new users hop right away to CeFi when they join.
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