Here’s how one company solves DeFi’s problems with simple onboarding and cross-chain staking

Decentralized finance (DeFi) was founded to transform financial services so that everyone, regardless of where they live or their status, can enjoy the benefits of financial sovereignty. However, before it can fulfill its mission, it must first tackle the complexities that are preventing millions of potential newcomers from using DeFi protocols.

A critical issue is the poor user experience and complicated interfaces that plague onboarding and make services inaccessible to a mainstream audience.

Onboarding and ease of use are key areas hindering mass adoption. Even without the know-your-customer (KYC) requirements, DeFi’s multi-step onboarding process makes the services out of reach for most people. The creation of wallets and the need to buy crypto assets to fund those wallets make non-native users reluctant to dive into valuable services like lending, trading, and yield farming.

How to simplify user experience in DeFi?

While active crypto market participants are well served, the main challenge is attracting those who are new to cryptocurrencies.

The second generation of DeFi applications should pay special attention to the user experience and work to convert all technical aspects of it into easy-to-use processes.

An example of the disruptive potential of simplifying the user experience is the transition from a command line interface (CLI) of old computers to the graphical user interface (GUI) of modern machines. Originally proposed by the Xerox PARC team and later promoted by Steve Jobs and his team at Apple in the 80’s, the desktop and mouse completely revolutionized computers and made them easy to use for everyone, as all the tricky processes were hidden and managed through an intuitive user interface .

A similar approach should be implemented by DeFi protocols that offer the public a seamless experience, delivered at the click of a button and hiding the technical intricacies.

Some DeFi projects are already developing user-friendly applications to encourage crypto adoption. One of the most relevant examples is Divi, a revenue-generating DeFi protocol that is working to add support for token swaps, non-fungible tokens (NFTs), cross-chain interoperability, and other features to become a one-stop DeFi solution .

Divi has a proprietary Proof-of-Stake (PoS) blockchain and native token (DIVI) that can be staked by users, but what sets this project apart is its focus on user experience.

Designed for the mainstream user, the Divi DeFi protocol implements a series of technical, user-friendly and profitable innovations to solve the liquidity, user-friendliness and sustainability issues that have plagued the market since its inception.

Divi makes the onboarding process easy. Users can take advantage of an intuitive user interface, which is also the approach Divi took when developing its custodyless wallet solution, Divi Wallet. Users can send tokens without having to understand all the complex functions behind the wallet, such as: staking vaults, PoS transactions, mobile masternodes, private key security, etc. To send crypto, wallet owners can tap their friend’s username, phone, or email address instead of confusing addresses.

As well as the wallet, Divi has managed to scale its staking process by simplifying node creation. Divi nodes are based on a proprietary, patented mobile technology that allows users to self-manage a node in the cloud in seconds.

Furthermore, Divi has developed an innovative cross-chain staking functionality that can serve as an additional DeFi mechanism for users. Designed to enhance interoperability features between Divi and other chains, cross-chain staking offers users higher rewards and deeper liquidity. It also allows for more decentralized and secure validation of transactions as players on one chain can help secure yield on another chain.

The way cross-chain staking works is simple. Users initially provide liquidity to the DIVI/ETH liquidity pool for which they receive LP tokens. These tokens are then staked on the Divi DeFi farm and users receive cross-chain eDivi staking rewards from the Layer 1 blockchain in proportion to their LP tokens. For more information, see the graphic below or read about cross-chain staking here.

Onboarding to help the DeFi protocol remain resilient during market downturns

By focusing on the onboarding process and user experience, DeFi projects can guarantee a steady influx of non-native crypto users, which in turn can help them thrive in ongoing bear markets like the current “crypto winter.” to hold water.

Improving onboarding and creating an intuitive interface for new users should become a priority for second-generation DeFi projects looking to scale operations and ensure a future-proof approach. Mass adoption is essential for an emerging market with big goals like DeFi.

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