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The Problems in DeFi in 2024
It’s been almost 6 years since the first liquidity was ever recorded locked on-chain on Jul 1, 2018.
DeFi is still a very new, yet rapidly evolving tech. The industry learned a lot of lessons during the 2020–2023 boom and bust cycles, and the future looks bright for DeFi.
Yet, there are still many screaming problems in this space that can hamstring DeFi’s short and mid-term growth.
Most of the DeFi products are just not accessible to everyone. With a plethora of yield farming pools, airdrop programs, and liquidity/staking opportunities, there is this paradox of choice and the paralysis it can induce for an average user. If we want to facilitate further DeFi adoption, something has to be done to demystify these complexities.
Problem 1: Disconnected & Fragmented Information
DeFi is growing fast, really fast. Every week sees the launch of 22 new DeFi protocols and L1/L2 blockchains on average. Based on Defillama, today we have 246 blockchain networks, over 3,346 DeFi protocols, and more than 10,546 yield-generating pools. But this is just the tip of the iceberg. The current DeFi trackers are only capturing about 1/5 of the total DeFi universe, suggesting there might be so many…
