Key Challenges in DeFi Today

1. Liquidity Fragmentation & High Slippage

Liquidity is spread across various Layer 1 and Layer 2 networks, making it difficult for traders to execute large trades without experiencing high slippage and price inconsistencies. Many decentralized exchanges (DEXs) lack deep liquidity, further exacerbating these inefficiencies.

2. Manual & Inefficient Trade Execution

Most DeFi traders still rely on manual strategies to execute trades, causing delays, missed opportunities, and inefficient market entry/exit points. Without automation or AI-driven trade execution, traders struggle to capitalize on arbitrage opportunities, and large transactions experience execution risks.

3. Complex & Costly Cross-Chain Transactions

Moving assets across different blockchains requires multiple steps, high transaction fees, and security risks. Bridging liquidity manually is slow, expensive, and often exposes traders to counterparty risk and inefficiencies.

4. Lack of Real-Time Market Intelligence

Retail traders and institutions often face information asymmetry, where access to market data, trade insights, and liquidity conditions is uneven. Without AI-powered insights, traders must manually track price discrepancies, arbitrage opportunities, and market trends, making it difficult to execute profitable trades efficiently.

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