DeFi today is generally “frustrating and complex” to new users
These were some of the comments made by Gauthier Vila, the CEO of OnDefy, on his panel “What Blocks People from Entering DeFi?” on the Day 2 of Avalanche Summit.
While Vila believes that DeFi will eventually eat centralized services away, there are current problems that make beginners unwilling to take up the route to DeFi.
Generally, crypto users by the end of 2021 was reported to be around 300 million, while DeFi users are only at four million.
Issues beginners face
While there are benefits to DeFi, namely openness, transparency, decentralization and having full ownership of your funds, Vila highlights the following problems:
- High fees (for certain blockchains)
- Requires a gas token to be purchased and used
- No easy fiat on-ramps to DeFi directly
- Requires knowledge in setting up things like wallets and seed phrases, buying a token from a centralized exchange for gas and withdrawing it out, setting up an RPC for Metamask, learning how to bridge to other chains etc.
While Web2 services do not have the decentralization properties of Web3 tech, they still have a relatively great user experience for most and are easy to pick up and use.
In essence, the frustration for new users is that not many can understand the technical aspects behind blockchain, are afraid of overly risky and complicated tasks to do, and are generally overwhelmed by the learning curve at the start. The best solution for this would be one that has the Web2 ease of usage and service, while everything else is done on-chain.
Gauthier then introduces his new project currently in beta that tackles such an issue, OnDefy.
What is OnDefy?
Basically, OnDefy is a one-stop platform for DeFi. It provides the CEX experience while having transactions on-chain. OnDefy has the following features:
1.) Wallet abstraction with easy email log-ins
Users can simply “log in” with an email to the OnDefy platform without a password or need to save a private key. They simply access a link via their email once they input it onto the OnDefy platform. 2FA is also available for extra security. This is done in partnership with the Magic team.
2.) Accessing and buying tokens from any chain
By integrating with the Coingecko API and DEX aggregators like 1inch and Matcha, OnDefy allows users to make a swap to any token similar to how a DEX functions. The DEX aggregator also allows for better exchange rates and low slippage that do not need to be set manually.
OnDefy has also worked with Connext and Movr bridges so users do not need to worry about having to bridge back and forth between other blockchains. 14 different blockchains are included and supported by OnDefy.
Additionally, on-ramp fiat services are available via Ramp.network and MoonPay. Swapping fiat directly to a token is also in the works
3.) Access DeFi services across chains easily
OnDefy also provides a simple dashboard for accessing known DeFi apps such as AAVE, Curve, etc. This allows for users to earn yield on their assets with DeFi strategies (all done on-chain) while having an easy to manage platform and experience.
Gauthier Vila provides a good summary of the problems that hinder new users from adopting and using the financial services some of us degens love and use today.
His solution, OnDefy, ultimately aims to tackle these problems and make DeFi as seamless and beginner-friendly as possible. Certainly an interesting project, fingers crossed!
Featured Image Credit: Chain Debrief