{"id":455675,"date":"2022-05-31T21:50:00","date_gmt":"2022-05-31T18:50:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/defi-isnt-dead-it-just-needs-to-fix-these-3-critical-problems\/"},"modified":"2022-05-31T21:50:00","modified_gmt":"2022-05-31T18:50:00","slug":"defi-isnt-dead-it-just-needs-to-fix-these-3-critical-problems","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/defi-isnt-dead-it-just-needs-to-fix-these-3-critical-problems\/","title":{"rendered":"# DeFi isn\u2019t dead, it just needs to fix these 3 critical problems"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2b361113ff9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2b361113ff9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-isnt-dead-it-just-needs-to-fix-these-3-critical-problems\/#%E2%80%9D_DeFi_isnt_dead_it_just_needs_to_fix_these_3_critical_problems_%E2%80%9C\" >&#8221; DeFi isn\u2019t dead, it just needs to fix these 3 critical problems &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-isnt-dead-it-just-needs-to-fix-these-3-critical-problems\/#Improved_usability\" >Improved usability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-isnt-dead-it-just-needs-to-fix-these-3-critical-problems\/#Security_needs_to_become_priority_1\" >Security needs to become priority #1\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-isnt-dead-it-just-needs-to-fix-these-3-critical-problems\/#Self-regulate_or_be_regulated\" >Self-regulate, or be regulated<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_DeFi_isnt_dead_it_just_needs_to_fix_these_3_critical_problems_%E2%80%9C\"><\/span>&#8221; DeFi isn\u2019t dead, it just needs to fix these 3 critical problems &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>The persistent challenges\u00a0decentralized finance\u00a0face have been well documented by a handful of analysts and the recent collapse of the Terra ecosystem re-enforced the fact that something is critically wrong with DeFi.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I think DeFi today is completely broken for 99% of the population.<\/p>\n<p>The promise of a more transparent financial system has been overtaken by greed.<\/p>\n<p>UST\/LUNA is just the latest in a string of bad developments:<\/p>\n<p>\u2014 Peter Yang (@petergyang) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/petergyang\/status\/1524395033570422784?ref_src=twsrc%5Etfw\">May 11, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nLet&#8217;s take a look at what experts say DeFi needs to do in order to have another revival.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Improved_usability\"><\/span>Improved usability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To date, the promise of open and uncensored access to a global decentralized financial system has been largely hampered by the complicated interface, confusing multi-step staking processes and lack of clarity surrounding the yields on various tokens.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">What do you think DeFi needs to reach mass adoption?<\/p>\n<p>a) Better ease of use<br \/>b) Greater education about DeFi<br \/>c) Less exploits and rugpulls<br \/>d) Greater liquidity and on-ramps<br \/>e) Clear government regulation <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/dX4Qpd2Dsh\">pic.twitter.com\/dX4Qpd2Dsh<\/a><\/p>\n<p>\u2014 Rugdoc.io (@RugDocIO) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/RugDocIO\/status\/1480185183882166276?ref_src=twsrc%5Etfw\">January 9, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The user experience for most platforms is sub-par to what would be expected when dealing with multi-million dollar platforms and the layouts can be complicated, along with poor documentation that leaves users frustrated.<\/p>\n<p>Adding to the confusion, an ever-growing list of blockchain networks with their own DeFi ecosystems can seem daunting to newcomers who may have never used a software wallet before. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/611e3537-ff56-451d-8cad-93bca6e478b9.png\"><\/figure>\n<p>Ultimately, a better system of educating the public about DeFi in a trusted setting is something that is needed to help the mass adoption process, otherwise you face the same problem of the current financial system where only a small portion of the population reaps the benefits. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Security_needs_to_become_priority_1\"><\/span>Security needs to become priority #1\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The DeFi sector is often referred to as the wild west due to the ability for anyone to launch a project with flashy promises only to pull the string on naive investors and leave them with a worthless token. <\/p>\n<p>Well-meaning projects also fall victim to smart contract vulnerabilities that see their liquidity drained. A recent example of this was the February, 2022\u00a0hack of the Wormhole token bridge which resulted in the loss of 120,000 wr<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed Ether (wETH) tokens.<\/p>\n<p>In order for more people to feel safe exploring the expanding DeFi ecosystem and to keep governments off the back of the industry, a greater level of security and protection from malicious actors and protocol exploits will be required. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Buterin: How to create algo stablecoins that don\u2019t turn into Ponzis or collapse<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Self-regulate_or_be_regulated\"><\/span>Self-regulate, or be regulated<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A third factor that is at the top of the list for many DeFi analysts is the need for greater regulatory clarity. <\/p>\n<p>While the mere mention of such a thing generates a slew of objections from many crypto investors who value its unregulated nature, the majority of the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> public who are not yet involved with cryptocurrencies and DeFi are likely to remain wary until the government gives the asset class a stamp of approval.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/6f788833-ac40-407d-bcf3-d89100f471fc.png\"><\/figure>\n<p>Thanks to the recent Terra ecosystem collapse, regulation could be one of the first challenges that DeFi has to resolve.\u00a0<\/p>\n<p>What those regulations eventually look like is unknown, but they will help to establish a starting point which could help the DeFi sector evolve and mature. <\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/defi-isn-t-dead-it-just-needs-to-fix-these-3-critical-problems\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; DeFi isn\u2019t dead, it just needs to fix these 3 critical problems &#8220; The persistent challenges\u00a0decentralized finance\u00a0face have been well documented by a handful of analysts and the recent collapse of the Terra ecosystem re-enforced the fact that something is critically wrong with DeFi. I think DeFi today is completely broken for 99% of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":455676,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvMGFjMWJjMzAtYzFlYi00NDhhLTk0MDYtODQxY2YyZmU3MjY1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74863,74877,74868,74882,75434,74355,73785,70934],"class_list":["post-455675","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-cryptocurrencies","tag-decentralized-exchange","tag-defi","tag-hacks","tag-smart-contracts","tag-adoption","tag-markets","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/455675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=455675"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/455675\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/455676"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=455675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=455675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=455675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}