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How Can Crypto Projects Bring DeFi Closer to Investors?

By FX Empire | FX Empire | 29 Oct 2021

DeFi is a concept that came into the financial scene back in 2018 with the launch of MakerDao. MarkerDAO brought lending opportunities for both business platforms and investors at large. defi farming gold word and tablet for cryptocurrency business c

Since then, there have been many projects, and the DeFi space is currently worth over $103 billion.

Yet, although DeFi is a popular name in crypto, adoption of the Decentralized Finance ideology is not as vast as many would think. But why? Many projects have not been providing solutions for small and less educated investors. Hence, DeFi has been unable to penetrate the small investors in developing countries.

So, what can DeFi developers do to ensure they takeDeFi closer to investors? Keep reading to see more.

Introducing Simplicity to DeFi

One of the best ways to ensure you bringDeFi to investors is fostering simplicity inDeFi. Today, there are hundreds of DeFi networks, each with its unique capabilities.

But, there is a lot of complexity inDeFi. An investor must use very complex interfaces to enjoy one DeFi service. The complexity of UI makes things hard for investors. Hence, investors chose to stay away. What if DeFi projects would bring simplicity?

To attract more investors, developers must introduce top simplicity in DeFi. Among the ways to bring simplicity include;

  • Introducing well-created user interfaces with the best user experience
  • Offering multiple earning opportunities


More Marketing and Education

Of course, marketing is a vital part of the DeFi ecosystem. Projects often do marketing to ensure they reach the wider DeFi audience. But, most projects focus just on increasing the number of web page visitors. But, to bring DeFi closer to investors, marketing should be educative.

When advertising DeFi projects, developers should focus on educating investors. Explain what DeFi is, how it works, the pros and cons. Educative content will bring in better results for the DeFi projects.

Fair Gas Charges and Scalability

Another barrier of entry in the DeFi space is the gas charges. In the past years, DeFi has been facing the problem of increasing gas charges. Due to the high fee, small investors will choose to stay away from DeFi investments.

Furthermore, the scalability of services has been lacking in DeFi. Transactions could delay for hours because of a lack of resources.

To bring DeFi closer, developers must reduce the gas charges and improve scalability. The developers must choose systems that provide services at lower charges. Of course, there are multiple smart chains today introduced to solve Ethereum’s problems. Moreover, there are layer two solutions to blockchain gases.

Security Guarantee

Developers should also offer safety of funds. Most investors chose to stay away from DeFi due to security issues. In 2021 alone, DeFi projects have been losing hundreds of millions of dollars. More security issues instill fear in investors. Thus they stay away from DeFi.

DeFi projects came with a solution to assure investors of top security, smart contract auditing, and KYC scanning. In fact, for that reason, DeFi has been a safe space to tread in recently.

But, DeFi projects should work more on providing safety for their investors. That should include regular security audits and setting policies that will help ensure zero chance for fraud.

Adhering to Regulation

There’s a lot of problems surrounding the regulation of crypto and DeFi. The SEC of the US, the FCA, and other regulatory authorities have been very harsh on the crypto space.

Although DeFi is often treated differently, it also faces a harsh regulatory environment. There are lots of regulatory requirements that platforms must follow.

To attract more investors to the DeFi space, developers must work very hard to streamline the regulatory issues. One of the best ways is by following the guidelines and parameters set in a country. By doing that, investors will have more trust in this DeFi space. As such, DeFi will be closer to investors.

Democratizing Investments

Most financial institutions often focus on benefiting the top and wealthy people. High return financial markets have many entry barriers, including minimum investments. As such, the platforms hinder smaller investors from participating. What if DeFi democratized these investment options?

When developing DeFi projects, the developers should eliminate entry barriers. Issues like lacking simplicity, high gases, and others can hinder people from investing. Moreover, the policies used could also be a problem for many.

However, democratizing finance involves making financial opportunities available to everyone. Developers should make things very simple for everyone.

Although the topic of democracy in investments is still new to many, platforms such as Coinchange are working towards incorporating it into businesses. Coinchange  introduces many earning opportunities for everyone. Due to its simplicity and elimination of entry barriers, Coinchange can attract investors. Investors can earn high APYs going to 12.64% and above, dictated by protocol activity..

Final Word

This guide has been looking into DeFi and how to bring more investors. Of course, the best way to take DeFi to the masses is by solving the problems facing this space. Among the problems include high fees and scalability. If projects offer lower-cost services at better speeds, then more people will be interested in joining.

Another hurdle involves simplifying the services. This means providing very friendly interfaces, such as Coinchange’s platform, designed for anyone to use. Coinchange features easy on and off ramps for USD, for example, that lower the barrier of entry for the average user who may not be familiar with crypto wallets and exchanges. Providing simplicity, education, security, and following regulations will send DeFi to the masses.

DeFi is still in its very early years. In the future, DeFi will reach more users if the developers work on reducing entry barriers.

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