When this becomes possible, I’m sure that DeFi will not only become the preferred choice, but it’d make centralized platforms obsolete.” ![]() “All of these problems can be solved by having a simple domain as an address that works cross-chain, and works frictionless with dApps. It's an arduous process,” Chaundhry says. Have you ever tried explaining DeFi to any non-crypto-native? Set up a wallet, explain secret keys, explain how to use their address, explain how to avoid getting their wallets drained. “But before they do, DeFi protocols will have to solve one of the most difficult problems in crypto if they wish to capture this audience and even retain some of their user base. “Eventually, regular retail users will start testing the water again,” says Shahmeer Chaudhry, CEO of Fluidity Money in Adelaide, Australia, a DeFi “Spend-2-Earn” protocol. 6, 2021, trade volume was over $30 billion. 5, one of the lowest volumes of the year. Using bitcoin trading volume as an indicator, some $21 billion in bitcoin was traded on Dec. ![]() Most investors are holding onto their bitcoin and alt-coins, of which DeFi is a huge part. It’s the reason why it’ll win out in the long run.” Deceived ex-users of FTX are now more likely to jump into DeFi for precisely this benefit. “DeFi is in no way responsible or complicit in the FTX collapse, but it is a potential antidote to the problem,” says Beth Haddock, a New York-based advisor to Balancer BAL, a DeFi liquidity protocol “In DeFi, smart contracts dictate the precise nature of each transaction you make, so there is no risk of misused user funds. MORE FROM FORBES The FTX Crisis Brought Investors To Decentralized Exchanges. This year’s downturn was already in play long before the world learned of FTX founder Sam Bankman Fried. It is an entirely new financial market, which looks a bit like a Star Wars cantina, where you can swap credits and borrow in currencies you couldn’t buy paper towels with, but can somehow earn 2% interest or more on. Ultimately, decentralized finance is peer-to-peer lending and transacting.
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