Problem and Solution
Last updated
Last updated
The DeFi aggregator market is showing continuous growth and improvement, both in terms of technology, tools and user experience. By following the pioneers and analyzing their experience, we can successfully avoid typical industry mistakes at the early stages of development.
The DeFi aggregator market is flooded with projects that are similar in functionality.
Liquidity aggregation: Most aggregators use similar methods of liquidity aggregation, combining offerings from multiple DEXs. The differences in the methods are minimal and do not have a significant impact on the final result for the user.
Route optimization: In the area of route optimization, there are similarities in the algorithms used by the platforms. There are no significant differences in approaches, which leads to similar exchange options for users.
Protocol support: The set of supported DeFi protocols for most aggregators is almost the same. User choice is limited to the generic tools offered by most platforms.
Modular architecture: Innovative solutions and unique modules are rare, which does not allow platforms to stand out from competitors.
The same features, usability (and often design), make it difficult for the user to choose a platform and make projects less valuable. Functional differences are minimal, leading to competition in marketing and brand awareness.
Conclusion: The most appropriate way would be to improve usability and add features and improvements that make the entire platform much easier to use. Not only the main functions of the aggregator are important, but also the capabilities that accompany the ecosystem - so that the user can easily carry out all the actions he needs and find information on one platform without the need to use any third-party tools.
UI features and functions proposed for implementation can be seen in the “Additional functionality” section
The idea behind aggregators is to allow users to compare offers from different DEXs and choose the most profitable option. However, high commissions can offset this advantage and make using aggregators impractical. In this situation, using a floating commission rate based on current market offers may be a solution. This will allow DeFi Markets to make their services more competitive, attract new users, and increase trading volume.
The floating commission rate can be calculated taking into account a number of factors:
Current network load
Demand for a specific trading pair
Order size
The algorithm for calculating the fees should be transparent and understandable to users; it can be easily found in the transaction interface. This will allow customers to make an informed choice and not feel deceived.
Other offers that reduce the commission burden are of a marketing nature:
Offer users discounts based on trading volume
Introduce a loyalty program
Implement partnership programs with other DeFi projects
DeFi is positioned as a transparent system, but some aggregators do not quite live up to this principle. A unclear explanation of fees and selected DEXs for trading creates problems for users:
Difficulty in understanding the execution of transactions.
Inability to evaluate the profitability of offers.
Potential risk of hidden fees.
To solve this problem, it is necessary to provide users with the most complete information:
A clear statement of all fees charged (including hidden fees and DEX fees). Both in aggregated data provided for choice, and when making a transaction directly.
Explanation of commission calculation methods.
Description of the transaction route.
Today, aggregators are a tool for experienced traders who are trying to further optimize trading - both time costs (and, of course, just costs) and analytics.
New users face problems - it is difficult for them to understand the purpose of the tools themselves and how to use the site.
This problem can be solved in 2 ways:
Offer beginners a package of automated strategies, among which a novice investor will be able to choose the one that suits his budget, goals and degree of optimal risk.
An alternative to this approach is to offer a subscription to the strategies of the best traders.
Rebuild the UI/UX and try to simplify the interfaces as much as possible, and make helpful tooltips available directly inside the relevant pages, and not in the FAQ section or on third-party resources.
In the world of decentralized finance (DeFi), a project's technical strength is a necessary but not sufficient condition for its success. Many DeFi developers are so caught up in creating innovative protocols and features that they forget how much value their tokens provide to users and the market. This results in a low market value of the token and the search for permanent financial impacts. An example would be the 1inch token:
The project is constantly evolving: software is being released, the aggregator is connecting new blockchains. This provides the prerequisites for the rate to rise. However, over the past year there have been no interesting updates or press releases about new developments and improvements, which has a negative impact on capitalization. There is no clear step-by-step plan for the development of the project.
Defi Markets is a promising product designed to solve the problems raised. In it we will collect the best DeFi tools, where experienced traders can increase liquidity and optimize their portfolio, and new traders can get acquainted with all the diversity of the investment market. To do this, we develop intuitive interfaces, explanatory materials, tips, and constantly monitor feedback to improve the user experience. All this is complemented by a healthy tokenomics, where the token is not only integrated into the product, but also supported in the market as an asset attractive to investors. Let's look at what we offer next.
