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DeFi’s goal is to ensure greater financial inclusion… This main mission – lower barriers for everyone. So that anyone with the Internet can participate. DeFi’s user interface should be easy to access and understand. Regular users should be able to access it from their phone through a simple application and be aware of the various options available to them. But so far, only those with the time and resources to understand and access basic technologies and new financial instruments can take advantage of this technology. This is a serious problem.
Web 3.0 technology is just around the corner. However, in its current form, it will not deliver on its promises and see massive adoption in the marketplace unless these new technology ecosystems are simplified through improved user experience. Difficulty is the enemy that keeps newbies away from trying DeFi and restraining its spread as a mass market phenomenon.
The future of finance is decentralized, but only if UX is a priority
The best technologies work, and most users don’t even know how, why, or what they are. You don’t need to know how your Wi-Fi works or how Gmail sends emails. Buttons have been removed on the iPhone. It was a breakthrough that resulted in a fully functioning computer operating system with one screen that marked the beginning of a new paradigm in UX design. Cryptocurrencies Should Follow a Similar Acceptance Curve.
But it looks like a lot of user interfaces are created by developers rather than product managers and UX designers. As a result, the complexity of the DeFi ecosystem requires complex understanding to access these products and limits mass adoption.
It’s unrealistic to expect newbies to easily grasp the new world of digital asset trading when you ask them to jot down a few random keywords to keep their money safe. It is unrealistic to expect newbies to confidently and securely store and transfer their assets without hesitation across chains and wallets, or adequately insure themselves against the high risks of this new digital world of finance.
DeFi’s user interface should be intuitive and simplebut this is currently not the case. For example, users need to be better informed about which digital wallets correspond to which blockchains. Users should be better warned if they try to send assets to the wrong chain. Surprisingly, most platforms don’t offer this. Or better yet, they don’t need to understand it at all.
Important tools need to be simplified. Take portfolio rebalancing, the process of reallocating asset weights to help manage risk and prevent over-exposure. If the user cannot do this easily, he may incur unnecessary losses. However, this process usually requires manual tracking and adjustment of the allocation of the respective assets to mitigate losses from other assets, usually through separate asset transactions. We need more automated tools that allow users to distribute weights at the touch of a button and reduce unnecessary steps.
Developers should also remember that they cannot assume that newbies have the education, experience, and understanding of the risks associated with DeFi. Users should also be aware of hidden fees or potential losses from slippage prior to the execution of buy, sell and swap orders.
DeFi Must Be More Inclusive To Witness Greater Acceptance
The average user in a developing country should understandhow long he should block his funds for the most optimal profit. He needs to see clearly how much he has to deposit in order to receive a certain amount of staking rewards.
He must be able to clearly see how much he should pay in order to get a certain amount financial rewards. He must see what income he will receive if he puts a token on the bet, and also be able to predict the profitability. It takes to accept an informed decision as to what opportunities to increase welfare are best for him and those around him. He needs to feel empowered to make decisions about which platforms provide the most value in terms of prices, exchange, and yield.
A new financial future: how do we get to it?
There is so much at stake as traditional financial institutions are increasingly switching to cryptocurrency and DeFi… We see the giants of the fintech industry planning a platform for DeFi services on the Bitcoin blockchain. For example, Aave launches a DeFi platform designed for institutional investors, with strict KYC procedures on both the lending and borrowing side for investors with strict regulatory requirements.
We also have top non-banking companies using DeFi. Paperchain, for example, is using DeFi to speed up the streaming of payments to musicians, using accounts as collateral for DeFi loans.
And MAPS.ME, the world’s most widely used offline travel map, has integrated DeFi into the back-end of its app so users can click a button to generate income. Closer collaboration between both sides of the bridge will accelerate the DeFi movement.
Developers must make DeFi safer and more accessible
Part of improving the usability and accessibility of DeFi isn’t just about making it simpler. It’s also about making it safer. Users have suffered over $ 12 billion in losses due to crimes in DeFi apps, with most of these losses incurred only in 2021.
Bugs in code and design flaws allow criminals to launder the proceeds of crime by sacrificing those less experienced in protecting themselves in this new financial arena that advocates eliminating third-party intermediaries by putting DeFi technology on regulatory hit lists.
Many traditional financial leaders call DeFi the “Wild West” of cryptocurrencies, and it is up to developers to change that. UX includes implementing safer infrastructure, more regular audits, and additional reward systems to keep users safe, and regulators are not imposing hard-and-fast rules to limit the capabilities of this new financial system.
#DeFi #simplify #design