The decentralized finance (DeFi) system has picked up a lot of pace in the crypto-industry since the mid of August 2020. More and more users are getting attracted to the traditional financing alternative on a daily basis.
Although the DeFi system seems very promising for the users, the co-founder of Ethereum Vitalik Buterin has warned his followers. He has warned his followers not to get too much carried away with the shine of the DeFi system.
He has specifically asked his followers not to get into DeFi unless they fully understand how it works. He said that if the users do not know about the DeFi system then it is better not to participate in the system if they have small investment amounts.
Despite its scalability problems, it is Ethereum (ETH) blockchain that currently dominates the DeFi industry. Even then, Vitalik Buterin has been very expressive about his opinion around the adaptability of the DeFi system. He acknowledged that the current protocols offered by the DeFi platform are hard to grasp for casual investors.
He stated that the tokens posting outsized gains and complicated concepts are just advertisement stunts. Due to this, there have been numerous incidents where a large volume of investors ended up losing their investments.
A financial investment program known as the ECOChain Financial Growth (EFG) tends to agree with this problem. The project has aimed to make the DeFi industry simple and comprehensible even for novice investors.
The firm also stated that there are still many flaws in the decentralized and blockchain platforms. Unless these flaws are fixed, the industry’s economic structure will keep on taking a huge fall from time to time.
Therefore, EFG is aiming to launch a new dApp that will assist investors in making their investment decisions easier. The dApp will tackle the downsides that are linked with investing and alert investors against any decisions that may not be in their better interests.
The dApp developed by EFG will help counter such issues by providing real-time data and technical analysis around live exchange rates of the assets and also add them to the smart contracts.