Industry Experts Discuss DeFi Challenges And Opportunities At Hack Seasons Opportunity Mixer In Seoul

At the current Hack Seasons Opportunity Mixer held in Seoul on September twenty fourth, outstanding figures from the trade convened to debate developments in digital finance. One panel, titled “DeFi with out illusions: the actual classes for builders,” supplied attendees sensible insights into how decentralized finance (DeFi) can develop extra resiliently within the upcoming cycle.

The dialogue was moderated by Sarah Shin, Business Development Associate at 1inch, and included contributions from Ethan Hassall, Head of Business Development at Treshold; LevX, founding father of xDFi; Francesco Andreoli, Director of Developer Relations at MetaMask; and Kevin He, co-founder of BitLayer.

The panel opened with a dialogue on what DeFi has really delivered in comparison with what has been overhyped.

Speakers famous that one of many constructive features of DeFi is its growing sophistication and depth. At the identical time, there was acknowledgment of disappointment concerning the real-world utility of off-chain yield, which has not met earlier expectations. The panel agreed that adoption in real-world use instances stays gradual and isn’t but aligned with the quick tempo of innovation throughout the DeFi ecosystem.

Several panelists emphasised that the unique imaginative and prescient of DeFi, relationship again to 2018, was to supply a permissionless system together with different core rules corresponding to trustlessness and decentralization. While trendy customers could pay much less consideration to the latter two values, permissionlessness stays central to DeFi’s success. The consensus was that though progress has been made, the ecosystem nonetheless has floor to cowl to completely understand the potential of open finance.

Speakers additionally noticed that many initiatives have been constructing foundational infrastructure for a while, and every innovation cycle brings new use instances and enhancements. However, the panel confused that DeFi’s affect is most clearly seen in core verticals corresponding to funds and lending, which proceed to drive adoption immediately. Addressing misconceptions, the dialogue highlighted that some perceived complicated use instances, corresponding to liquidity supplier rebalancing via brokers, are comparatively easy and might usually be achieved with easy scripts. Panelists additionally famous that whereas DeFi options usually contain layers of abstraction, the underlying use instances stay highly effective because of the ecosystem’s 24/7 accessibility, although trade-offs have to be fastidiously thought-about.

The dialog additional emphasised that DeFi gives customers with transparency, and regulatory compliance parts corresponding to KYC lists can provide vital advantages. Another level addressed was the expectation that DeFi may shortly penetrate institutional markets. Speakers cautioned that this transition stays a long-term problem, as institutional purchasers proceed to be involved about privateness and the publicity of buying and selling methods. Security issues have been additionally famous as an ongoing space requiring substantial growth.

Developer Insights, Security Trade-Offs, And Strategic Approaches For Scalable DeFi Networks

The dialogue then shifted to the implications for builders, with panelists sharing insights and classes discovered from their respective areas of experience. MetaMask emphasised the significance of making strong developer instruments, noting that these instruments stop the creation of redundant options or incomplete implementations. Building various login strategies took vital time on account of person demand, however having an current person base allowed the corporate to deploy production-ready options shortly with out compromising performance.

xDFi mentioned challenges that had been underestimated on the mission’s inception. Two years in the past, there have been intensive debates over whether or not an intent-based strategy or a share-sequence mannequin was simpler, notably within the growth of intent requirements. The workforce recognized alternatives to optimize liquidity synchronization with out slippage, whereas additionally addressing the necessity to design trustless and permissionless techniques that reduce factors of potential exploitation.

Treshold highlighted the complicated trade-offs concerned in balancing decentralization, safety, and usefulness. In the context of wrapped Bitcoin, alternatives often arose to accomplice with custodians who may mint BTC with out authorized or technical claims on the underlying property. The firm emphasised that sustaining a dedication to belief and transparency, somewhat than prioritizing complete worth locked (TVL) metrics, was a difficult however needed determination.

The panel additionally famous that whereas Layer 2 options provide potential for scalability and lowered prices, adoption is just not assured. BitLayer shared classes on navigating the stability between safety, efficiency, and adoption, emphasizing that in 2025, it’s not possible to construct a brand new ecosystem from scratch as Ethereum as soon as did. Convincing customers and builders emigrate requires clear differentiation and distinctive worth propositions. BitLayer’s strategy is to focus growth on particular use instances somewhat than trying to duplicate current Layer 2 ecosystems. The overarching conclusion for Layer 2 and Layer 3 networks is that imitation of profitable fashions like Arbitrum is unlikely to succeed, and innovation must be guided by distinctive options tailor-made to distinct person wants.

Security, User Experience, And Regulations As Key Points For Growth

The dialog then moved to further classes in DeFi, starting with safety. The panel examined sensible approaches for designing techniques that genuinely safeguard customers. Speakers emphasised the supply of on-chain insurance coverage, the appliance of AI for safety functions, and the usage of zero-knowledge know-how to deal with each safety and scalability challenges. It was famous that the majority hacks happen on account of fundamental errors, and a focus was drawn to the significance of managing losses by reacting to the time window hackers exploit between stealing and transferring funds.

The dialogue additionally addressed the difficulty of adaptability. User expertise continues to pose a barrier, as DeFi stays complicated for mainstream audiences. Panelists highlighted prediction markets and centralized exchanges providing staking as potential avenues for onboarding retail customers to DeFi. Simplifying the onboarding course of requires creating distinct person journeys tailor-made to totally different audiences, together with streamlined on-ramps and off-ramps, crypto card integrations, and stablecoin options. To facilitate adoption by newcomers, abstracted options are important, alongside strong developer instruments for these coming into the Web3 ecosystem.

Finally, the panel mentioned regulation, contemplating whether or not it serves as a catalyst for DeFi development or acts as a constraint that slows innovation.

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