3.1 DeFi’s obstacles for mass adoption
DeFi has been considered as a new token economy that is open to everyone with an internet connection. In reality however, due to the technical limitations, DeFi has been hard-to-use from a user perspective. The following are challenges for DeFi to be massively adopted by users:
    Crypto Wallet & User experience: Due to the nature of DeFi, each user should own a crypto wallet in order to make on-chain transactions to participate in DeFi applications. A crypto wallet requires users to understand the importance of private keys (which most people do not understand what it is) and to be responsible for keeping their own private key, which is not what is expected for most users as they were familiar with current financial systems.
    To which DeFi platform users should invest: On one hand, it is hard for users to keep up with the speed of new launching DeFi platforms. On the other hand, bad projects have put lots of risks for ordinary users to select an appropriate DeFi platform to minimize the risks and maximize the profits.
    Different and hard-to-understand steps to invest in DeFi: Farming, Staking, and P2P Lending have become standard DeFi applications that generate high interest. It is however hard for ordinary users to understand and use most of those applications. For example, to invest in a farming application, a user needs to add liquidity to receive liquidity provider’s tokens (known as “LP tokens”) where a pair of token assets are required with high gas fees. Once LP token obtained, the user also needs to deposit LP tokens in the farming pool, which entails high transaction fees for each step that can reduce the profit generated by the application.
Based on our observations, Moonfarm is created to address the aforementioned problems and provide users with effortless DeFi experience.
Last modified 4mo ago
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