Given the complexity of onboarding users in the crypto space, how can we hope to onboard half a billion people in the next year? The current multi-step, fee-laden process creates barriers, making it incomprehensible right from the start. To capture the unicorn of mass adoption, simplifying and streamlining a whole variety of services and experiences is crucial for making DeFi accessible and user-friendly.

However, it's important to recognize that DeFi comes with its own set of risks, such as smart contract vulnerabilities, liquidity concerns, and regulatory uncertainties, which need to be addressed alongside usability improvements to ensure a safer experience for new users. Learn more here.

However, with that all being said, how about an example of why DeFi needs a makeover?

Meet John, a developer at a leading IT firm. Driven by curiosity and a practical goal of investing in crypto, John opts for a decentralized approach.

So, what does his journey look like? Initially, he’ll probably start with a centralized exchange. If everything goes smoothly, great! Otherwise, there’s a risk his fiat could get lost due to banking security or other glitches.

Once John manages to buy some ETH, the next step is transferring it to cold storage.John first sends it to his newly set-up MetaMask wallet. Navigating the seed phrase was a challenge, and figuring out how to transfer his coins from MetaMask to his Ledger takes additional time.

John's struggles do not end there. He’ll need to tackle staking, ensuring his ETH is liquid when needed, and tracking its performance. Throughout this process, he faces various fees from different services, which gradually chip away at his investment.

Doesn’t sound like a user-friendly experience, does it?

And it’s not that Web3 tech is too complex; it’s the current state of its delivery to the user that’s falling behind. As TON Foundation’s director of investments, Justin Hyun once mentioned, “Bringing 500 million people on-chain by 2028 is going to require use cases that interact with the blockchain without the user knowing that in the front end.”

To improve accessibility in DeFi, several key changes can be made to smoothen the UX. One significant step is integrating fiat on-ramps directly into DEXes. This would allow users to skip centralized exchanges and buy crypto directly on the DEX of their choice.

Another important adjustment involves addressing the challenge of gas fees. By allowing users to cover these fees with stablecoins or the tokens they are transacting with, rather than requiring native tokens, the entry barrier can be reduced. This change would prevent new users from facing the obstacle of needing to acquire additional tokens just to pay for gas.

Improving the user experience in DeFi is essential for making the technology accessible to a broader audience. Many users today are accustomed to the seamless and intuitive interfaces of Web2 platforms, which set high expectations for ease of use. Taking a loan at a bank may take a few minutes; now what about DeFi loans? You might need to learn a thing or two before you even pick a place to do that.  

To enhance usability, DeFi platforms must adopt user-friendly design principles similar to those found in Web2. This means creating clear, intuitive interfaces with straightforward navigation and minimal jargon. Users should be able to perform transactions and manage their assets with ease, without having to grapple with complicated processes or confusing terminology.

Streamlining onboarding processes is also crucial. Simplifying steps such as account creation, token transfers, and staking can help reduce friction among new users. Providing guided tutorials, tooltips and other in-app support can further assist users in understanding how to use the platform effectively.

Building trust is another condition to attract new users, as security concerns are a major barrier to entry. The DeFi space has experienced significant setbacks due to hacks and scams, which have eroded user confidence. 

Recent incidents highlight the need for better security measures. For instance, hackers used the sandwich attack to steal over $25 million worth of crypto from Uniswap. Similarly, SushiSwap suffered a security breach where a vulnerability in the project’s RouteProcessor2 led to a loss of over $3 million.

Addressing these security issues head-on is essential to reassuring potential users and creating a safer environment. DeFi platforms must prioritize smart contract audits and comprehensive risk assessments. 

Transparency about security protocols and prompt disclosure of any vulnerabilities or incidents can also help build credibility. Additionally, implementing user-friendly security features, such as two-factor authentication and insurance coverage for potential losses, can help.

Integrating DeFi into everyday financial activities can make it more relevant and useful for non-crypto users. For instance, DeFi platforms can offer high-yield savings accounts and investment opportunities that surpass traditional bank rates, attracting users looking for better returns.

Simplified cross-border payments and transfers using stablecoins and decentralized solutions can make international transactions faster and cheaper. Additionally, decentralized lending platforms provide alternative borrowing options with competitive rates, while DeFi-based insurance offers customized coverage options. Integrating DeFi features into personal finance apps can help users manage and optimize their savings, investments, and spending. 

Moreover, quite a few DeFi apps are already working on improving the experience for non-crypto users. Solana’s DeFi ecosystem is a perfect example of this trend. The network has seen a surge in DEX activity, with daily transaction volumes exceeding billions, driven by low transaction fees and high interest in meme coins. Top platforms like Orca, Raydium, and Lifinity are leading this growth, offering user-friendly experiences that make DeFi more accessible.

Solana’s approach includes simplifying transactions and reducing costs, which helps lower new users' barriers. The network's achievements, such as surpassing Ethereum in daily stablecoin transfer volume and setting records for TVL, highlight its effectiveness in making DeFi more practical and appealing. 

One of the biggest challenges for crypto beginners is buying their first digital assets. Most users just turn to centralized exchanges. However, integrating fiat gateways directly into dApps offers a far superior alternative, delivering a truly native crypto experience. 

Mercuryo is committed to addressing this issue by offering on-ramp and off-ramp solutions for dApps. Their approach aims to simplify the process, allowing users to convert fiat to crypto and vice versa directly within the decentralized ecosystem, enhancing accessibility and making the transition to crypto more intuitive.