What is interesting to you in DeFi?

Wednesday, November 6th 2024

I am going to ground this in the core User Experience and User concerns, and then some of the things that seem interesting to me.

But first we should talk about the problems with TradFi:

Core User Problems in Traditional Finance (TradFi):

• Lack of Self Custody
  • Counter Party Risk
  • Exposure to Seizure
• High fees and intermediary costs
• Limited access to financial services
• Long settlement times
• Geographic restrictions
• Lack of transparency
• Limited operating hours
• Account minimums and barriers to entry

Benefits of DeFi over TradFi

• Self Custody -> True Ownership
• Faster Settlement Finality
• No dependency on institution solvency

User Concerns with DeFi:

1. Complexity of needing to select and work across multiple Chains when interacting with a dApp
2. The increased Complexity if there are multiple Steps, across multiple dApps
3. Security and hacking fears
4. Difficulty in managing their PnL
5. Making yield without risk exposure

Complexity of ne