Although Decentralized Finance aka DeFi is still a nascent industry, it has come a long way in the past year or so. The Total value locked (TVL) in DeFi assets has tripled in value since the beginning of 2021 alone — touching a peak of $45.97 billion recently. There are numerous reasons behind its recent success. DeFi has shown promise in addressing the inherent weaknesses of the legacy financial system, which became apparent in the financial crisis of 2008–09.
The biggest impact of the new decentralized model is seen in the inclusiveness it has brought for the people — be it a Hedge Fund Manager at a Top financial firm in the U.S or a farmer in a remote region of Africa. All you need is a smartphone with internet access. What makes these decentralized networks so enticing are their features of transparency, privacy, immutability.
DeFi platforms fall into the category of decentralized applications (dApps) built on top of smart contract-enriched blockchains. The programmability takes the effort out of implementing a new system from scratch — by implementing business logic into low-cost and interoperable financial services.
Despite all these attractive features, the fledgling industry is faced with certain challenges as it evolves through the early stages of its lifecycle. And we at Spherium want to address these challenges to bring you a wholesome DeFi experience by offering you a range of services under one roof.
- Need for a unified platform — The current DeFi landscape is fragmented, where users have to register on multiple platforms to access different services like trading, lending, etc. Sperhium intends to combine all these services within its platform to take the frustration out of accessing multiple platforms.
- Smooth cross-platform functionality — Although some of the current DeFi platforms offer cross-platform collaboration, the user experience is far from smooth. Spherium wants to introduce a seamless user experience in the current framework for cross-chain interoperability.
- Intuitive design & user-friendly UI interface — One of the primary challenges with the current DeFi platforms is their complex UI/UX interface — which caters more to the users with a high degree of technical proficiency. Although functionality is really important, it might be a little too complicated for everyday users. That’s why Spherium is building a product that brings functionality with an enhanced user experience — building a base for increased retail adoption in the long-term.
- Multi-wallet integration — Digital wallets are an integral part of any DeFi ecosystem. Spherium team is developing a multipurpose wallet that will also have integrations with payment gateways and crypto-to-fiat payment offboarding facilities. Additional cutting-edge features, such as post-quantum cryptography-powered security and multi-signature aggregation capabilities will be part of the wallet in the roadmap ahead.
- KYC/AML Regulation — This is a tricky area for DeFi protocols since their permissionless nature does not depend on KYC proceedings to function. However, we recognize this is an important feature to have to avoid the illegal use of financial services via our platform. Going forward this might also become a deal-breaker when it comes to regulatory oversight. To tackle the situation, Spherium plans to utilize AI algorithms to acquire insights into the nature of transactions conducted on our platform.
DeFi offers huge promise in its ability to reshape the future of consumer finance, however, the platforms in the space are still some way off from their contemporaries in the legacy financial system, in terms of operation, functionality & design. Spherium wants to bridge this gap by bringing a consolidated DeFi platform that offers extended functionalities and a seamless operation.
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NOTE: The article was originally published on Medium and the author is the Senior Content Writer for the Project.
