DeFi originated from the birth of Bitcoin and rose with 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 mechanisms have emerged in an endless stream, and the TVL of DeFi protocols has grown rapidly, ushering in the epic DeFi Summer season. At the same time, the DeFi ecosystem has expanded from Ethereum to many public chains such as Solana and Avalanche, and the concept of DeFi has exploded. 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 Layer 2 and cross-chain technologies.
Today, DeFi has become the most basic and widely used application in the crypto industry. However, with the influx of new users, many problems of DeFi, such as high technical threshold, complex operation interface, and security risks, have also been exposed, which hinders the participation enthusiasm of ordinary users. As the industrys 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 has simplified the complexity through product innovation, greatly improving the user experience of participating in DeFi. This article is the 4th issue of the Invisible Infrastructure series of the OKX Web3 wallet. Through dialogue, we will deeply explore the OKX Web3 DeFi teams thinking and design on user experience.
Starting point of the product
OKX Web3 Team: 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 difficulty for users to find better returns. Next, we can briefly break down these pain points.
1) High threshold for use: Currently, there are many types of DeFi protocols, and the operations are complex 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 cost of learning. In addition, the platform also presents the revenue structure through an intuitive interface to help users easily understand and use the product.
2) The protocol is risky: DeFi protocols involve a large amount of funds and are easily targeted by hackers. Many protocols official websites, social media portals such as Twitter, are also at risk of being attacked, threatening user funds. OKX DeFi uses strict protocol screening to directly access contracts and 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 where the Pendle official website was hijacked a while ago, OKX DeFi avoided similar security risks through this mechanism.
3) It is difficult for users to find better returns: DeFi protocols have diverse revenue mechanisms, and it is difficult for users to quickly screen out more suitable trading opportunities. OKX DeFi sorts protocols through multi-dimensional data such as annualized rate of return APY and total locked-in volume TVL, and combines users trading portfolios, positions, 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 revenue 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 threshold for participation in DeFi and make decentralized financial tools easy to use. We are committed to becoming a leading one-stop DeFi service platform, simplifying complex DeFi operation processes, and providing 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.
Latest news sharing
OKX Web3 Team: 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 returns on the chain.
We recently launched the How to Play Zone, with Babylon as the first release, breaking down DeFi operations by type and step, and guiding users to complete complex transaction processes. At the same time, OKX DeFi will launch a new bonus feature to provide users with more on-chain income. In the future, we plan to launch the Simple Earning Coins product for the machine gun pool strategy to further enhance the users income 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.
Thinking about user experience
OKX Web3 Team: Balancing the richness of product functions and the convenience of user operations is an important direction for improving user experience. First of all, we differentiate 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 using a common interaction method.
Secondly, we connect to as many chains, as many protocols, and as many bonuses as possible, but through simplified universal template design, we avoid users having to repeatedly learn and familiarize themselves 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 gameplay areas, etc. By gradually dismantling complex and nested DeFi protocols, users can understand the operation paths, risks and benefits, and lower 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, DeFi ideas and concepts are delivered through products again and again in different scenarios, and complex DeFi logic is gradually delivered to users, making their operations more concise and easy to understand each time.
Market hot spots and user feedback
OKX Web3 Team: The technical innovation of the OKX Web3 DeFi team does not lie in the revolution of the underlying technology, but in quickly capturing market hot spots and accessing them in a timely manner. 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 operations and observe the benefits. Although the complexity of the on-chain protocol has made our team face the challenge of simultaneously accessing a large number of protocols and new chains, 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 our products are closely aligned with user needs. For example, we obtain real product usage feedback through external user questionnaires; on the other hand, we use the internal feedback mechanism to take 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 deeply cultivated 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 is able to quickly capture market hotspots from external communities and internal feedback, evaluate applicable DeFi trading products, and quickly connect them to the platform, allowing users to always stay at the forefront of DeFi trends.
Product Design Principles
OKX Web3 team: There is no doubt that 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 the audit report of the connected contract, etc., and will be directly presented to the user on the front end. Combined with its own protocol analysis, the users financial risks will be avoided as much as possible. When encountering high-risk protocols, they will be actively blocked, and they will be removed from the shelves as soon as risks occur. If a serious incident occurs, they will continue to track and study the handling 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 present comprehensive information to users as objectively as possible, and screen and sort through objective standards, including APY, TVL, etc., so that users will not be disturbed by the subjective judgment of the OKX DeFi side when trading, but will make decisions based on objective data standards. We will try our best to present both risks and benefits to users in a transparent manner.
The third principle is to strive for more benefits for users. On the basis of not doing evil and being open and transparent, after users have a certain level of financial security, OKX Web3 DeFi will assist users in judging risks and benefits, presenting as many benefits as possible to users, and will actively contact some leading public chains and protocols to negotiate more channel-exclusive bonuses and points for users.
Access Protocol Security Mechanism Partners
OKX Web3 Team: When integrating new protocols, we have established multiple security defense mechanisms.
1) Audit report and score display: The platform displays audit reports and scores directly to users to improve transparency.
2) Risk warning mechanism: When accessing the agreement, 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 to avoid the risk of subjective malicious behavior by the project parties as much as possible.
4) Risk response: If risks occur, OKX Web3 DeFi will immediately remove the relevant protocols and continue to track developments to protect user interests.
At present, 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, as well as emerging protocols such as Pendle, Eigenlayer, Babylon, ether.fi, Zircuit, SUI and SEI public chain ecosystems, etc. Basically, the leading public chains and leading protocols are partners of the OKX Web3 DeFi team.
How to stay competitive in a rapidly changing market
OKX Web3 Team: First of all, it is the sense of the market. Currently, 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 them.
The second is the teams execution ability. With the joint efforts of OKX Web3 DeFi and its partner teams, we can generally start chain analysis and protocol access as soon as we determine the access, and quickly use front-end templates or quickly design new product forms for implementation and present them to users as soon as possible.
Finally, the core competitiveness of OKX Web3 DeFi comes from the emphasis on talent and continuous technological innovation. We have brought together outstanding partners in the industry and believe that we will be able to maintain sustained competitiveness in the future no matter how turbulent and changeable the market environment is.
Product planning and future innovation direction
OKX Web3 Team: There are many planned features to look 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) A new version of the bonus module will bring users more bonuses and better ways to display bonuses. 3) The discovery of new chains such as TON and more new protocols. 4) The continuous iteration of the points module will make 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 more comprehensive gameplay guidance from simple trading products, giving users a more three-dimensional DeFi experience. To a certain extent, protocol users can even optimize DeFi trading strategies without escrow funds, balance risks and benefits, and improve the overall DeFi experience.
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 will enable more products to access OKX Web3 DeFi, and it will 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.
The Future of DeFi
OKX Web3 Team: 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 relatively 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 trends, quickly access emerging protocols, and continue to protect the security of users assets, and is committed to bringing users a better DeFi participation experience.
Learn more about OKX Web3 invisible infrastructure
To learn more about the invisible infrastructure of OKX Web3 wallet, click here:
2. Invisible Infrastructure Issue 02｜Dialogue with OKX Web3 Team: Why Build APIs?
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, may depreciate in value, 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 professional 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.
