Other Challenges
Some other challenges of DeFi DApps include:
- DeFi protocols are prone to cyberattacks. Due to code vulnerabilities, the system can be hacked which makes it possible for hackers to exploit the system to defraud the users
- Sometimes even valuable DeFi coins face volatility and unexpected changes can lead to severe losses for the buyers and sellers of DeFi platforms
Top 6 Challenges Faced By DeFi DApp Solutions
According to recent figures, the total value locked (TVL) of Decentralized Finance (DeFi) reached over $100 million in November 2021 and now it has sealed more than $39.5 billion. The past few years have transformed the finance sector by including high-end technologies streamlining business functions and processes. DeFi DApp development is one of the major use cases for the industry that eliminates intermediaries and reduces transaction costs.
Whether it be loans, investments, trading, or transactional processes, DeFi streamlines every function with enhanced transparency, security, and speed. Besides the multi-million dollar DeFi market, when it comes to developing DeFi DApps solutions, there are some pitfalls developers and businesses face.
In this article, we’ll look into some challenges of DeFi DApp solutions to help you acknowledge the difficulties while diving into the domain. Before that, let’s see what exactly is DeFi DApps.