Defi :Beginners guide to defi

  1. Liquidity The defi market is not as big as the traditional finance.Lack of enough liquidity.The total value locked in defi lies at $97 BN
  2. Fluctuating transaction cost on Ethereum implying that trading can get really expensive.Last year transaction cost in Ethereum ie(gas fee) reached $60 for a transaction worth $100.
  3. High volatility on defi protocols that can lead to huge losses as there still lies uncertainties .After all this is new tech.
  4. Scalability Defi transactions require long periods of time for confirmation making it difficult to scale.

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