DeFi Problem Statement
Decentralized Finance (DeFi) has revolutionized the financial landscape, offering users alternatives to traditional banking and investment systems. However, despite its rapid growth, several critical issues remain:
Limited Integration with Bitcoin: Bitcoin, the most widely adopted and trusted cryptocurrency, is underutilized in DeFi due to technical limitations, leaving its holders with fewer opportunities to leverage their assets.
High Costs and Inefficiencies: Many existing DeFi platforms are plagued by high transaction fees and slow processing times, particularly on networks like Ethereum during periods of congestion.
Complex User Experience: DeFi platforms often have steep learning curves, requiring significant technical expertise, which discourages mass adoption.
Security Risks: Hacks, exploits, and poorly audited smart contracts have resulted in significant losses, undermining trust in the DeFi ecosystem.
Sustainability Challenges: Many DeFi models rely on unsustainable tokenomics, leading to inflationary pressures and diminishing long-term value for participants.
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