The Eight Insights I Got From DeFi and Plasma
#Short_Term
Tag: #Community_Adoption #DeFi #Liquidity_Pool #Plasma
1. UX wise, the biggest pros of DeFi is atomicity of tx. We can handle huge amount of money with simple interaction. Normally we've spent long time and high concentration to complete complicated processes :atom_symbol:
2. DevUX wise, the composability of contracts accelerates development and enable avoiding reinvention of wheel.:rocket:
3. UX wise again, the token-interface is the core of the DeFi UX. The cDAI from Compound and the SwanDAI from UMA community are tradable on the Uniswap. The token-interface is the Lingua Franca of DeFi.:globe_with_meridians:
4. DevUX wise again, the liquidity pool is the lethal weapon to build the token-interface. The pooled asset represents the price of token. This is why the community prefer the liquidity pool.:muscle:
5. UX wise, the liquidity pool itself won't simply improve end-user UX directly. If low-liquidity, very high slippage. If high-liquidity, it's good BUT you can do that with non-liquidity-pool system. Hence, we can narrow-down that the liquidity pool is being used for token-interface creation and not for enabling any features. Conclusion: Plasma can't make the token-interface BUT Plasma can trade tokens. :whale:
6. The distance between FIAT and DeFi is very far. Many steps and fees are mandated there. With below 10000USD asset, no one can make profit and this is not financial inclusion. We can propose the best rate and seamless UX solution like Ramp Network on the Plasma.:soon:
7. Plasma do need O.R. or L1 to create token-interface via the liquidity pool. But in other words, we need them only for that purpose.🥳
8. Maker, Compound, UMA, and Ramp Network are all promising DeFi protocols but all rely on oracle server. Only Maker proposing a workaround to make oracle secure via oracle owner rotation system, but others are not. Even by the workaround, oracle is the weakest security point. For us, the upside is that Plasma isn't the security/censorship-resistance bottleneck. The downside is that DeFi has not really promising yet. We have to surf this market.:surfer: