DeFi for the Masses: Keeping It Simple and Accessible
The growth in DeFi has been unprecedented. With over $190 billion Total Value Locked (TVL) as of the time of writing, the DeFi sector has certainly come a long way.
Today, there are countless DeFi projects empowering a variety of decentralized services that enable new ways to trade and generate returns. However, the big question lies in knowing how to tread waters in this risky, complicated and extremely fast-paced DeFi industry.
DeFi is New Paradigm for Finance
First things first, Decentralized Finance, or DeFi as commonly called, are blockchain powered financial applications built on smart contracts. Staying aligned with the nature of blockchain’s democratic, trustless, permissionless and decentralized capabilities, these DeFi apps and protocols provide an easier gateway for users to access financial services. Borrowing, lending and trading crypto without the need of a centralized financial party on a 24/7 global scale, has led to the immense popularity in DeFi adoption.
With DeFi, every participant can collectively become his or her own bank instead of relying on centralized banks and institutions. Users maintain control of their funds and can make transfers in the shortest time possible when compared to slow traditional finance. DeFi’s potential for providing comprehensive yet innovative finance solutions, as opposed to the traditional finance sector is one major reason it has remained attractive to myriads of investors.
Challenge for Everyday Users
While these solutions are revolutionary, the major bottleneck for users is selecting the best choices among the overwhelming DeFi apps available.
There are thousands of liquidity pools and DeFi platforms with each offering different rates of returns and yields. Considering most users, especially beginners, struggle to navigate DeFi platforms on how they work. The challenge of finding the right platform to invest in makes the task even more burdensome.
Questions of safety become more paramount. How do you ensure the liquidity pools are safe and secure? How can you avoid being rug pulled? When it comes to investments, security ranks number one amongst factors to be considered by any potential user. DeFi is quite risky, but many still choose to jump in with lucrative returns to be earned.
Overcoming Challenges
A laudable solution to the existing challenges for users would be developing platforms that simplifies DeFi user experience. Hiding the complexity behind DeFi’s inner intricacies and providing ease of access brings friendlier user experiences to both new and advanced DeFi adopters.
Typical users are more inclined with easy to understand platforms and superior user experience. Solutions that can allow for faster decision making while balancing returns are no doubt the attractive option.
3Key goes one step further in solving these burdens by providing a full suite of DeFi portfolio management products. Apart from effectively managing and maximizing clients’ DeFi portfolio, 3Key employs the use of a state-of-the-art AI technology, LYRA to ensure users obtain the best yield in DeFi with the lowest risks possible.
LYRA (Leverage Yield Risk Analytics) is a proprietary AI system that helps 3Key to smartly manage risks associated with leveraged farming in DeFi. What LYRA does is scan across all existing DeFi protocols and on-chain data before selecting those with the best yields.
As a result, users can be assured of investing with the most suitable protocol when managed by 3Key. It saves users the big challenge of researching and spending extra time when this task is automated with 3Key’s proprietary algorithms.
3Key also helps to ensure that the complexities of DeFi are simplified for the regular user. Thus users are offered an easy gateway to participate in the DeFi space through 3Key’s streamlined approach.
With effective solutions like those provided by 3Key to address these huge challenges, we are certainly going to witness continuous adoption in the DeFi sector. Automated DeFi strategies and yield generating apps makes it simpler for everyday users to mitigate risk while improving accessibility. Approach, Solutions and Performance — 3Key has it all.
