DeFi originated from the birth of Bitcoin and rose from the development of Ethereum.
In 2017, with the launch of lending protocols such as Uniswap and Compound on Ethereum, DeFi quickly attracted widespread attention. Entering 2020, innovative gameplay such as liquidity mining and AMM mechanism emerged in an endless stream, and the TVL of the DeFi protocol grew rapidly, ushering in the epic DeFi Summer season. At the same time, the DeFi ecosystem began to expand from Ethereum to many public chains such as Solana and Avalanche, and the DeFi concept broke out in an all-round way. Since then, DeFi has continued to combine with NFT and GameFi, promoting the diversification of assets, bringing new types of financial products and value storage methods, and moving towards a larger scale in the development of Layer2 and cross-chain technologies.
Today, DeFi has become the most basic and widely used application in the encryption industry, but with the influx of new users, many problems such as high technical barriers, complex operating interfaces, and security risks in DeFi have also been exposed, hindering the enthusiasm of ordinary users to participate. As the industry's leading one-stop Web3 portal, OKX Web3 Wallet provides a one-stop on-chain trading tool. Regardless of whether users have on-chain trading experience, they can easily participate in various head protocol activities with one click and get rewards more easily. In addition, OKX Web3 DeFi will cooperate with the head protocols recognized in the industry for access, and choose protocols with higher security as much as possible. OKX Web3 DeFi will not host funds for users, but will do its best to provide security protection. It is worth noting that in addition to the on-chain network fees required to complete each transaction, OKX Web3 DeFi will not charge additional fees.
In short, while solving user pain points, OKX Web3 DeFi makes complexity simple through product innovation, greatly improving the user experience of participating in DeFi. This article isOKX Web3Walllet's "Invisible Infrastructure" series4Content, through the form of dialogue, it will deeply exploreOKX Web3 DeFiteam's thinking and design on user experience.
OKX Web3Team: The original intention of designing our products is to start from solving the core pain points of users, including high usage thresholds, high protocol risks, and users’ difficulty in finding better returns. Next, we can simply disassemble these pain points.
1) High usage threshold: There are many types of DeFi protocols at present, and the operations are complicated and not unified. Users need to spend a lot of time to familiarize themselves with the different processes of each DApp, which increases the cost of learning and use. OKX DeFi aggregates multiple protocols into one platform through a unified interactive design, greatly simplifying the search and exploration path, so that users do not have to switch between different protocols, thereby reducing the learning cost. In addition, the platform also presents the income structure through an intuitive interface to help users easily understand and use the product.
2) The protocol risk is relatively high: DeFi protocols involve a large amount of funds and are easily targeted by hackers. The official websites of many protocols, social media portals such as Twitter, are also at risk of being attacked, resulting in threats to user funds. OKX DeFi directly accesses contracts through strict protocol screening to avoid external risks as much as possible. This protective measure of the platform reduces the possibility of hacker attacks and ensures the safety of user funds as much as possible. For example, in the incident of Pendle's official website being hijacked a while ago, OKX DeFi avoided similar security risks through such mechanisms.
3) It is difficult for users to find better returns: DeFi protocols have diverse income mechanisms, and it is difficult for users to quickly screen out more suitable trading opportunities. OKX DeFi sorts protocols by multi-dimensional data such as annualized yield APY, total locked volume TVL, etc., and combines users' trading portfolios, holdings, etc. to provide users with a full range of screening tools to help them find a more suitable DeFi path. At the same time, OKX DeFi also cooperates with popular protocols such as Babylon, Pendle, and Compound to strive for additional exclusive income incentives to help users get more rewards on the basis of basic income.
In general, the main goal of OKX Web3 DeFi is to lower the participation threshold of DeFi and make decentralized financial tools easy to use. We are committed to becoming a leading one-stop DeFi service platform, simplifying the complex DeFi operation process, and providing a high-quality user experience, so that DeFi can benefit more users and help them get corresponding rewards from decentralized finance.
For example, users can participate in DeFi transactions as easily as shopping.
OKX Web3Team: The OKX Web3 DeFi platform analyzes various DeFi protocols to present the risks and benefits of the protocols to users. At the same time, the platform supports users to easily deposit and withdraw digital assets, lowering the threshold for participation. OKX DeFi also provides users with additional exclusive benefits, and connects CeFi and DeFi, helping exchange users to enjoy higher on-chain benefits.
We recently launched the "Gameplay Zone", with Babylon as the first launch, disassembling DeFi operations by type and steps, and guiding users to complete complex transaction processes. At the same time, OKX DeFi will launch a new bonus function to provide users with more on-chain benefits. In the future, we plan to launch the "Simple Earning Coins" product with a machine gun pool strategy to further enhance users' benefit experience. By continuously optimizing the user experience, we are presenting complex DeFi participation in steps, which not only helps users better understand decentralized finance, but also provides them with a more efficient path to participate.
OKX Web3Team:Balancing the richness of product functions and the convenience of user operations is an important direction for improving user experience. First, we distinguish protocols according to transaction operations and try to use a common interaction method for different protocols, so that users can have a consistent experience between different protocols. For example, the protocols are divided into single-currency interaction and multi-currency interaction, and two sets of standard templates are used for access respectively, and different types of DeFi such as lending and staking are all used in a common interaction method.
Secondly, we access as many chains, as many protocols, and as many bonuses as possible, but through a simplified universal template design, users can avoid repeated learning and repeated familiarity with the product.
Then, after completing the relatively comprehensive DeFi protocol access in the industry, we will also launch new product forms for DeFi user education, such as a gameplay zone, etc., by gradually dismantling complex and nested DeFi protocols, allowing users to understand the operation path, risks and benefits, and lowering the participation threshold for novice users.
Finally, DeFi not only involves the four dimensions of trading products, chains, protocols, and orders, but the same currency will also have different APYs and TVLs in different dimensions. For example, USDT transactions in different chains, different protocols, and even different periods will have different risks and benefits, so users are often faced with relatively more complex information content, which is difficult to understand. We organize the data in an orderly manner and present it intuitively and visually to help users easily choose trading plans between different APYs and TVLs. In addition, through repeated interactions and intuitive design, we convey DeFi ideas and concepts through products in different scenarios, and gradually convey complex DeFi logic to users, making their operations more concise and easy to understand each time.
OKX Web3Team:The technical innovation of the OKX Web3 DeFi team does not lie in the revolution of underlying technology, but in quickly capturing market hotspots and timely access. For example, when the staking of the TON ecosystem, the interest rate hike activities of the SEI ecosystem, and the nested gameplay of the Pendle ecosystem were hot, our team presented these hot spots to users as soon as possible. At the same time, we will also simplify the operation and reduce the participation threshold of protocols such as Uniswap V3 to the level where novice users can directly move their fingers, click and observe the income. Although the complexity of the on-chain protocol has made our team face the challenge of connecting a large number of protocols and new chains at the same time, such as lending, quantitative arbitrage and other innovative gameplay, the OKX Web3 DeFi team has always been committed to simplifying these complex operations so that users can experience DeFi innovation in the most intuitive way.
We collect user feedback from multiple dimensions to ensure that the product is closely aligned with user needs. For example, on the one hand, we obtain real product usage feedback through external user questionnaires; on the other hand, through the internal feedback mechanism, we use the team members' own experience as an important reference, because our team members include OG users of various DeFi, including farmers who have been repeatedly tempered since DeFi Summer, veterans who have been deeply involved in the BTC ecosystem and built the OKX inscription product from 0-1, and builders from top DeFi projects. Everyone is a senior user of various DeFi products and can better help the product to be continuously improved. Of course, more than that, we will also organize and review product data every day, including user activity, new protocol status, etc., to ensure that problems are discovered and optimized in a timely manner.
In short, our team can quickly capture market hotspots from external communities and internal feedback, evaluate applicable DeFi trading products, and quickly connect them to the platform, so that users are always at the forefront of DeFi trends.
OKX Web3Team: Without a doubt, the first principle is to do no evil. The OKX DeFi team will always follow this clause when designing any product. First of all, it will ensure that they do not do evil subjectively. When designing products, they will try not to interact directly with user assets, but directly link user funds in a decentralized manner through third-party protocols to eliminate the feasibility of the platform side bringing additional risks to users. At the same time, the project party will be checked for the risk of doing evil, including docking the audit reports of the accessed contracts and presenting them directly to the users on the front end. Combined with its own protocol analysis, it will try to avoid the user's financial risks as much as possible, actively block high-risk protocols, and take measures such as delisting as soon as risks occur. If serious incidents occur, it will continue to track and study the treatment measures. While helping users pursue returns, we will jointly protect the safety of users' funds.
The second principle is openness and transparency. When designing the product, OKX DeFi will try to present comprehensive information to users objectively, and screen and sort through objective standards, including APY, TVL, etc., so that users will not be disturbed by the subjective judgment of OKX DeFi when trading, but make decisions through objective data standards. We try to present both risks and benefits to users transparently.
The third principle is to strive for more benefits for users. On the basis of not doing evil and openness and transparency, after users have a certain level of financial security, OKX Web3 DeFi will assist users in judging risks and benefits, present as many benefits as possible to users, and will take the initiative to contact some head public chains and head protocols to negotiate more channel-exclusive bonuses and points for users.
OKX Web3Team:When accessing new protocols, we have established multiple security defense mechanisms.
1) Audit report and score display: The platform will directly display the audit report and score to users to improve transparency.
2) Risk warning mechanism: When accessing the protocol, if potential risks are found, we will immediately stop access and do our best to protect user assets.
3) Project screening: We will strictly screen the top projects and try to avoid the risk of subjective malicious behavior by the project parties.
4) Risk response: If risks occur, OKX Web3 DeFi will immediately remove the relevant protocols and continue to track the development of the situation to protect the interests of users.
Currently, we basically have certain cooperation with the leading DeFi protocols and public chains, including TON ecosystems such as Ston.fi, Sol ecosystems such as Jito, old Ethereum protocols such as Lido, Uniswap, Compound, and emerging protocols such as Pendle, Eigenlayer, Babylon, ether.fi, Zircuit, SUI and SEI public chain ecosystems, etc. Basically, the leading public chains and protocols are partners of the OKX Web3 DeFi team.
OKX Web3Team: First of all, it is the sense of the market. At present, OKX Web3 DeFi has mature, sensitive and comprehensive detectives both internally and externally, who can discover hot spots at the first time and make reasonable assessments of hot spots.
Secondly, it is the team's execution. With the joint efforts of OKX Web3 DeFi and its cooperation team, they can generally start chain analysis and protocol access as soon as they determine the access, and quickly use the front-end template or quickly design new product forms to implement them and present them to users as soon as possible.
Finally, it is the emphasis on talents and continuous technological innovation. The core competitiveness of OKX Web3 DeFi still comes from the dimensions of talents and technological innovation. We have brought together outstanding partners in the industry and believe that we can have sustainable competitiveness in the future, no matter how turbulent and changeable the market environment is.
OKX Web3Team: There are many planned features worth looking forward to in the future, such as 1) the more comprehensive DeFi gameplay center mentioned above, which has launched the first phase based on Babylon, and will launch more protocols and convenient product iterations in the future. 2) The new bonus module revision brings more bonuses and better bonus display methods to users. 3) The discovery of new chains such as TON and more new protocols. 4) The continuous iteration of the points module makes the display and transaction of points more visual, making points one of the assets that DeFi users can manage.
The future innovation direction of our products is mainly reflected in two aspects:
1) Simplify complex protocols: With enough protocols and chains, we will gradually provide users with richer gameplay guidance from simple trading products, giving users a more three-dimensional DeFi experience. Even to a certain extent, protocol users can optimize DeFi trading strategies without escrow funds, balance risks and returns, and improve the overall experience of DeFi.
2) Open cooperation and non-permission: In the future, more permissions will be opened to partners, including bonus modules and DeFi API. OKX Web3 DeFi is not just a simple OKX product, but it can enable more products to access OKX Web3 DeFi, and it can also open bonuses and more services to B-side customers such as project parties, and even gradually transform into a non-permissioned DeFi chain tool to provide more services to B-side customers.
OKX Web3Team: Since DeFi Summer, DeFi has been an important theme in the Web3 field. Although DeFi is not as popular as it was before, it is still the core gathering place for funds and OG users on major public chains, maintaining a high total locked-in TVL. At present, through emerging protocols such as re-staking, DeFi has gained new vitality, and the annualized yield APY of many protocols can still be maintained at more than 10%. I believe that more and more interesting new protocols will emerge in the future, leading DeFi to a new peak again.
OKX DeFi will always keep up with market hotspots, quickly access emerging protocols, and continue to protect the security of users' assets, and is committed to bringing users a better DeFi participation experience.
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2. "Invisible Infrastructure Issue 02 | Dialogue with OKX Web3 team: Why build an API? 》
Disclaimer:
This content is for reference only and does not constitute and should not be considered as (i) investment advice or recommendation, (ii) an offer or solicitation to buy, sell or hold digital assets, or (iii) financial, accounting, legal or tax advice. We do not guarantee the accuracy, completeness or usefulness of such information. Digital assets (including stablecoins and NFTs) are subject to market fluctuations, involve high risks, and may depreciate or even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation and risk tolerance. Please consult your legal/tax/investment professionals for your specific situation. Not all products are available in all regions. For more details, please refer to the OKX Terms of Service and Risk Disclosure & Disclaimer. The OKX Web3 wallet and its derivative services are subject to separate terms of service. Please be responsible for understanding and complying with local applicable laws and regulations.
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