Talking About DeFi

Years ago, DeFi almost disrupted Fintech.

There were very promising conditions, and some projects became extremely successful, as they brought high-value innovation to public blockchains. On the other hand, they also prompted the creation of conditions, when established blockchains charge fees that were too high, thus excluding a large part of potential users.

Finding solutions to DeFi problems.

Namely: security, scalability, accessibility of information, centralization, and liquidity. Another major problem was the complexity of DeFi for crypto users.

Multiple new layer one and layer two blockchain solutions now promise scalability and low fees. The downside effect of this is the fragmentation of DeFi application ecosystems and the creation of trapped, captive liquidity in their respective domains. Fragmented liquidity, in turn, means worsened trade execution prices for users and forces the whole ecosystem to overpay liquidity providers.