The DeFi Problem
Understanding the current limitations and challenges in DeFi protocols
Despite the growth of decentralized finance, protocols across the DeFi landscape remain limited in both their scope and design, resulting in a highly fragmented on-chain experience.
Key Challenge:
User portfolios are typically scattered across siloed platforms with inefficient interfaces, no uniformity, and minimal (if any) interoperability.
The Volatility Challenge
Volatility and DeFi have a longstanding relationship; prices, yields, and platform mechanics shift frequently, and agile asset management is mission critical for all participants.
| Challenge | Impact |
|---|---|
| Portfolio Fragmentation | Assets scattered across multiple platforms |
| Interface Inefficiency | Complex and time-consuming transaction management |
| Limited Interop | Minimal communication between different protocols |
| Manual Management | Time-intensive portfolio rebalancing and optimization |
User Need:
Users crave the ability to aggregate most of their on-chain activity within one coherent interface. Executing numerous individual transactions for each asset, across protocols, is simply not an option, especially in the most turbulent times.
Current Solutions Fall Short
The current generation of automated strategy protocols frequently promise simplicity and accessibility around on-chain options, index vaults, and dynamic limit ordering. Most users, however, do not find competitive levels of:
- Specificity in strategy customization
- Customization options for portfolio management
- Speed in execution and rebalancing
This forces many to resort to lumbering manual methods, creating inefficiencies in both time and capital deployment.