<p>User experience (UX) in DeFi is mostly clunky, lagging behind engineering and infrastructure innovation. But for broader adoption, UX in DeFi is a critical element. DeFi has for long been plagued by UX/UI that is built by engineers for engineers with users often blaming design and complexity for the difficulty of using a protocol or product. The amount of steps and thorough time and involvement needed to comprehend and execute the full transaction flow acts as a blocker for wider adoption. Growing the total value locked (TVL) in DeFi will need new users on board, and that means protocols need to emerge with a UX that&#39;s both intelligent and intuitive, promising to set new standards for how users interact with DeFi platforms.</p><h2 id="header-0">The Importance of UX in DeFi</h2><p>If we skip the aspect of needing a crypto wallet to use any reliable DeFi application, it seems as if the most successful applications, such as Uniswap, also have some of the cleanest and simplest UX.</p><p>With a myriad of tokens, staking mechanisms, and liquidity pools already being complex products in their own nature, navigating the front end of the ecosystem is a challenge. For newcomers, this landscape can be daunting. Imagine an index fund investor trying to trade complex derivatives without any guidance — if they have any form of risk aversion, they probably wouldn’t touch those instruments at all. Now imagine introducing non-crypto native users to DeFi protocols, what would drive them to use products they simply can’t understand?</p><p>DeFi’s promise is to offer market participants with more control, transparency, and opportunities to earn. Yet, the steep learning curve, intensified by intricate mechanisms and a confusing UI, often sidelines those who could benefit the most. Most are left feeling overwhelmed, with the potential of DeFi overshadowed by the challenge of understanding it.</p><p>[explore tech limitations in a thin ui design limitation if its a pure dApp. Hybrid dapps with front ends built on conventional frontend stack, that interacts with …]</p><h2 id="header-1">Emerging Trends in DeFi: Aggregation Platforms</h2><p>DeFi incumbents like Uniswap and Aave have moved the barrier by miles, but a new cohort of companies has emerged here to carry the torch forward - <a href="https://coinmarketcap.com/academy/article/what-is-a-defi-aggregator-and-why-should-i-care" rel="noopener noreferrer nofollow">aggregators</a>.</p><p>For instance, Zerion has positioned itself as a comprehensive portfolio aggregator. It offers users a bird&#39;s eye view of their assets across numerous protocols, simplifying asset tracking and management. On the other side of the spectrum, <a href="https://coincentral.com/5-best-defi-aggregators-how-to-make-defi-a-bit-less-complicated/" rel="noopener noreferrer nofollow">1inch</a> has taken the lead in swap routing aggregation, providing users with the cheapest route for their DeFi transactions by comparing token swap rates across different decentralized exchanges (DEXs).</p><p>The essence of these aggregators is to enhance UX and market efficiency. They handle the backend operations, delivering streamlined, and often more financially favorable, outcomes for users. Building on this trend, a newer player, aarnâ has introduced a DeFi matrix, an evolved design that aggregates and integrates top DeFi applications for seamless interaction within the DeFi ecosystem. The matrix offers a holistic dashboard that covers a user&#39;s positions across DeFi, again pushing UX innovation one step further.</p><h2 id="header-2">Complexity Abstraction in UX</h2><p>A significant challenge in DeFi is the inherent complexity of transactions. Many protocols require users to navigate multiple steps for what, in essence, should be simple operations. This is where the concept of &#34;<a href="https://medium.com/coinmonks/vaultification-of-everything-fb0aef48763" rel="noopener noreferrer nofollow">vaultification</a>&#34; comes into play.</p><p>The vault-based design centres on automating processes to offer users a simplified interaction model. For instance, platforms like Yearn and Ribbon leverage vaults to condense complex transactions into fewer steps. By pooling funds and employing strategic algorithms, these vaults automatically optimize users&#39; returns. However, while their functionality is groundbreaking, their user experience can still be daunting as it is forcibly trying to explain the complexity of the product on the user interface. aarnâ has taken the concept of vaultification one step further, integrating steps of complexity abstraction into its UX design, meaning the platform’s vaults are delivering an uncomplicated, intuitive interface slimming down the information intake.</p><h2 id="header-3">DeFi Asset Management</h2><p>Asset management will play an increasingly larger role in ensuring new users can navigate the complexities of the ecosystem. In TradFi asset and wealth management has brought in billions of dollars of value. Given the technological opportunities in DeFi, we have a plethora of entirely new methods of asset management.</p><p>aarnâ is at the forefront of autonomous asset management, integrating user-friendly interfaces with DeFi asset management strategies driven by vaults. Features such as automated portfolio rebalancing, risk management protocols, and yield optimization contribute to a holistic DeFi asset management experience. Our flagship aarnâ AI [30/7] model for example is up over 59% over the past 6 months.</p><p><img src="https://academy-public.coinmarketcap.com/optimized-uploads/bb9a3a3af845479e891d5bcf6810a632.png" /></p><p>We believe that the next wave of adoption will be driven by a combination of DeFi asset management solutions such as our [30/7] model combined with a new generation of UX/UI innovations making onboarding smoother for new participants.</p><p>For further insights on DeFi UX and an exploration of the myriad platforms in this space, keep an eye on this channel.</p>

Why UX in DeFi is Vital for the Next 100 million Users

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