Industry experts paid attention to DeFi adoption despite security flaws

Mr. Bukov’s sentiments sound very hopeful. Anton Bukov, the Co-founder of 1inch, stated that the recent incidents in centralized financing are helping users to realize the importance of Decentralized Finance (DeFi).

Expert’s views on DeFi adoption and security concerns —

People are slightly scared to enter the new world. DeFi describes itself as a hub for various hacks and exploits after the attack at Lodestar Finance was exploited. Meanwhile, experts believe that the decentralized has the future potential for adaptation. 

Web3 executives have shared their views on the limited potential of DeFi adoption, from educating institutional investors to eliminating user experience barriers for retail investors.

Anton Bukov, Co-founder of 1inch, trusts that the value of Decentralized finance has increased because of the incidents in centralized finance. The influencer of Web3 technology stated that it’s just “a matter of time” in converting traditional financial systems into Web3 solutions. 

Mr. Bukov addresses the deep understanding of institutional DeFi adoptions, “The key to DeFi adoption among institutional investors is a deep understanding of transparency benefits, trustless approach and self-custodian technologies.” 

Security issues are the major concern of every firm and program. The executives have advised about the same. As per the co-founder, performing security audits is the utmost priority. “My advice to any DeFi project is simple – don’t be lazy to do several security audits before releasing any update, this will save you a ton of nerves and highly likely – users’ funds,” he said.

Dmitry Tolok, a co-founder of Primex Finance, also shares his opinion on DeFi security. According to him, more insurance protocols may help in increasing the adoption of Defi.  

He illustrated, “More insurance protocols are also needed to mitigate concerns related to potential hacks. The growth of such protocols would lead to the organic development and growth of DeFi.”

BNB Chain executive Alvin Kan focused on the importance of education to skyrocket the DeFi adoption. Kan shares with Cointelegraph the need for educating users. He stated, “Given the permissionless and digital nature of DeFi, risks will always be present, and users need to understand how to do their own due diligence to minimize the risk they’re taking on.”

Jay Sullivan, a founder of XSwap Protocol,  also emphasized the same point of view of educating users. Sullivan mentioned “teaching investors how to keep their funds safe.” Instead of reserving assets Sullivan focused on educating investors on what to look for when investing.

Executives paid attention to regulating the system apart from education. “With the collapse of several centralized exchanges this year, investors have seen the importance of DeFi. However, for institutional investors to enter, we need to see the industry evolve,” Sullivan added.