Challenges Faced By DeFi Users
Decentralized Finance (DeFi) though relatively a fresh concept yet its use of it is growing rapidly.
Only a minority doubts DeFi’s potential because they believe that there are important factors pertaining to finance that need thorough explanation.
It is true that engaging with DeFi platforms and utilizing DeFi protocols is not only time-consuming but also quite challenging and non-user friendly.
One of the major challenges in DeFi is the method that pertains to earning yields through staking and farming.
The issue is that yields are neither pre-determined nor pre-fixed and instead they continue to change frequently.
This means that users cannot allow them in taking away their attention from their computer screens, otherwise, they will miss the opportunity.
Some DeFi Projects Are Extra Difficult
Users often report facing extreme difficulties in using some high-yielding DeFi projects because such projects require users to focus on a variety of pools simultaneously.
On the other hand, manual compounding is also known to be a quite difficult process the DeFi users have to undergo.
Usually, DeFi users have been seen using several other blockchains for the purposes of growth where liquidity is lacking.
However, this practice is extremely costly considering that the transactional fee in such projects is exorbitant while lack of security is another issue.
Lack of Automation Is the Mother of All Problems
Although the DeFi sector has been growing faster than any other sector, yet it hasn’t been able to address most of the issues.
For instance, lack of security is the major concern in DeFi which is evident from the fact that in 2022 hackers mostly targeted DeFi projects. Resultantly, they exploited over 44 projects and stolen over $1 Billion so far.
The reason is that automation is apparently lacking in this fastest-growing sector. It lacks the tools which reduce users’ efforts and interaction and can do tedious tasks efficiently and automatically.
Autostarts – An Evolution
There is also a huge lack of awareness within the crypto community regarding DeFi which was duly noted by an independent crypto researcher, Morning Consult.
According to the researcher, only 77% of the crypto community has heard of DeFi and only 2% of the community are DeFi users. This low percentage is perhaps because the masses feel DeFi is difficult to access.
UNO has however taken the initiative of addressing these problems, including the non-user friendliness of DeFi projects. It has come up with a plan where DeFi users can make their deposits into the protocol and relax.
UNO has launched Autostarts for making DeFi projects user-friendly and accessible to all. Autostarts would enable the DeFi users in compounding their crypto holdings to organically increase their annual yields’ average.
Secondly, Autostarts would automatically transfer assets into protocols, blockchains, and pools where annual percentage yields are higher.
However, would automation is the answer to these problems is yet to be seen but UNO believes it is the ultimate solution.