Our product design is based on three principles: "Do no evil", "Transparency", and "Advocating for more benefits for users". We aim to simplify the complex DeFi and bring a new one-stop experience to all OKX Web3 users.
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. In 2020, innovative gameplay such as liquidity mining and AMM mechanisms continued to emerge, leading to rapid growth in DeFi protocol TVL, ushering in an epic DeFi Summer season. Meanwhile, the DeFi ecosystem expanded from Ethereum to many public chains such as Solana and Avalanche, and the DeFi concept exploded comprehensively. Subsequently, the combination of DeFi with NFT and GameFi continued to drive asset diversification, bringing new types of financial products and value storage methods. With the development of Layer2 and cross-chain technology, DeFi has moved towards a larger scale.
Today, DeFi has become the most fundamental and widespread application in the cryptocurrency industry. However, with the influx of new users, the high technical barriers, complex user interfaces, and security risks of DeFi have been exposed, hindering the enthusiasm of ordinary users to participate. As a leading one-stop Web3 gateway, the 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 leading protocol activities with a single click and are more likely to receive rewards. In addition, OKX Web3 DeFi cooperates with recognized leading protocols in the industry and selects protocols with higher security as much as possible. OKX Web3 DeFi does not custody user funds but strives to provide security protection. It is worth noting that in addition to the on-chain network fees required for each transaction, OKX Web3 DeFi does not charge additional fees.
In summary, OKX Web3 DeFi not only addresses user pain points but also greatly enhances the user experience of participating in DeFi through product innovation, making the complex simple. This article is the fourth installment of the "Invisible Infrastructure" series of the OKX Web3 wallet, which will delve into the OKX Web3 DeFi team's thoughts and designs on user experience through dialogue.
Starting point of the product
OKX Web3 Team: The original intention of our product design is to start with solving the core pain points of users, including high entry barriers, protocol risks, and difficulty in finding better returns. Next, we can briefly break down these pain points.
1) High entry barriers: Currently, there are many types of DeFi protocols with complex and non-uniform operations, requiring users to spend a lot of time familiarizing themselves with the different processes of each DApp, increasing the learning and usage costs. OKX DeFi aggregates multiple protocols on a unified platform through unified interaction design, greatly simplifying the search and exploration paths, allowing users to avoid switching between different protocols, thereby reducing the learning cost. In addition, the platform presents the profit structure through an intuitive interface, helping users to easily understand and use the product.
2) Protocol risks: DeFi protocols involve a large amount of funds and are prone to become targets of hacker attacks. The official websites and social media entrances of many protocols also face the risk of being attacked, posing a threat to user funds. OKX DeFi directly accesses contracts through strict protocol screening to minimize external risks. This protective measure reduces the likelihood of hacker attacks and strives to safeguard user funds. For example, in the recent incident of the hijacking of the Pendle official website, OKX DeFi avoided similar security risks through such mechanisms.
3) Difficulty in finding better returns: DeFi protocols have diverse profit mechanisms, making it difficult for users to quickly filter out suitable trading opportunities. OKX DeFi ranks protocols based on multidimensional data such as annualized yield APY and total value locked TVL, and combines users' trading portfolios and positions to provide comprehensive filtering tools, helping them find more suitable DeFi paths. Additionally, OKX DeFi collaborates with popular protocols such as Babylon, Pendle, and Compound to strive for additional exclusive incentives, helping users obtain more rewards on top of the basic returns.
In general, the main goal of OKX Web3 DeFi is to lower the participation threshold of DeFi and make decentralized financial tools easier to use. We are committed to becoming a leading one-stop DeFi service platform, simplifying the complex DeFi operation process, providing a high-quality user experience, and making DeFi more accessible to users, helping them obtain corresponding rewards from decentralized finance.
To put it simply, users can participate in DeFi transactions as easily as shopping.
Latest developments sharing
OKX Web3 Team: The OKX Web3 DeFi platform presents the risks and returns of various DeFi protocols to users by analyzing them. At the same time, the platform supports users in easily depositing and withdrawing digital assets, reducing the entry barriers. OKX DeFi also provides additional exclusive returns to users and bridges the gap between CeFi and DeFi, allowing exchange users to enjoy higher on-chain returns.
We recently launched the "Gameplay Zone", with Babylon as the first release, breaking down the complex trading process by type and step, guiding users to complete it. At the same time, OKX DeFi will introduce a new reward function to provide users with more on-chain returns. Future plans include the "Simple Earning Coins" product for yield farming strategies, further enhancing the user's return experience. By continuously optimizing the user experience, we are presenting the complex participation in DeFi step by step, not only helping users better understand decentralized finance but also providing them with more efficient participation paths.
Considerations on user experience
OKX Web3 Team: Balancing the richness of product features with the convenience of user operations is an important direction for improving user experience. First, by distinguishing protocols based on trading operations, we try to use a common interaction method for different protocols to provide users with a consistent experience across different protocols. For example, different types of DeFi, such as lending and staking, are accessed using common interaction methods for single-asset and multi-asset interactions.
Second, we aim to integrate as many chains, protocols, and rewards as possible, but through simplified and common template designs, we avoid users having to repeatedly learn and familiarize themselves with the product.
Furthermore, after completing relatively comprehensive access to DeFi protocols within the industry, we will also introduce new product forms for DeFi user education, such as the "Gameplay Zone", by gradually breaking down complex nested DeFi protocols, helping users understand the operation paths, risks, and returns, and reducing the entry barriers for novice users.
Finally, DeFi involves trading pairs, chains, protocols, and orders, and the same currency in different dimensions may have different APY and TVL. For example, USDT on different chains, different protocols, and even different trading periods may have different risks and returns. Therefore, users often face relatively complex information content and high understanding difficulty. We organize the data systematically and present it visually to help users easily choose trading strategies between different APY and TVL. In addition, through repeated interactions and intuitive design, we convey DeFi concepts and ideas to users in different scenarios, gradually simplifying the complex DeFi logic for them to make each operation more concise and understandable.
Market trends and user feedback
OKX Web3 Team: The technical innovation of the OKX Web3 DeFi team lies not in the revolution of underlying technology, but in quickly capturing market trends and timely integration. For example, when the staking in the TON ecosystem, the interest-earning activities in the SEI ecosystem, and the nested gameplay in the Pendle ecosystem were popular, our team presented these trends to users at the first time. At the same time, through simplified operations, we lowered the entry barriers for protocols with high participation thresholds, such as Uniswap V3, allowing novice users to directly click and observe the degree of returns. Despite the complexity of on-chain protocols, our team is committed to simplifying these complex operations, allowing users to experience DeFi innovation in the most intuitive way, despite the challenges of simultaneously integrating a large number of protocols and new chains, such as lending and quantitative arbitrage.
We collect user feedback from multiple dimensions to ensure that the product closely meets user needs. For example, we obtain real product usage feedback through external user surveys and use an internal feedback mechanism to consider team members' own usage experiences. Our team members include various DeFi OG users, from the DeFi Summer era to experienced Farmers, veterans who have deep experience in the BTC ecosystem and have built OKX products from scratch, as well as Builders from leading DeFi projects. They are all seasoned users of various DeFi products and can help continuously improve the product. Additionally, we organize and review product data daily, including user activity and new protocol information, to ensure timely identification and optimization of issues.
In summary, our team can quickly capture market trends from external communities and internal feedback, evaluate applicable DeFi trading products, and rapidly integrate them into the platform, keeping users at the forefront of the DeFi trend.
Product Design Principles
OKX Web3 Team: Without a doubt, the first principle is "Do no evil". The OKX DeFi team consistently upholds this principle in any product design. We prioritize safeguarding against subjective wrongdoing and aim to minimize direct interaction with user assets when designing products. Instead, we link user funds through decentralized means via third-party protocols to eliminate the feasibility of additional risks to users from the platform side. We also conduct risk assessments of project parties, including audits of the contracts being integrated, and present the findings directly to users on the front end. We aim to minimize user fund risks through our protocol analysis and proactively block high-risk protocols and take action such as delisting in the event of risks. While helping users pursue returns, we collectively safeguard user funds' security.
The second principle is transparency. When designing products, OKX DeFi strives to present comprehensive and objective information to users and uses objective criteria such as APY and TVL for filtering and ranking. This ensures that users' trading decisions are not influenced by subjective judgments from OKX DeFi but are based on transparently displayed risk and return data.
The third principle is advocating for more benefits for users. Building on the principles of "Do no evil" and transparency, OKX Web3 DeFi assists users in assessing risks and returns, presenting as many returns as possible, and actively negotiating additional exclusive rewards and points with top public chains and protocols for users.
Security Mechanisms for Protocol Integration & Partnerships
OKX Web3 Team: When integrating new protocols, we have established multiple security defense mechanisms.
1) Audit reports and ratings display: The platform directly displays audit reports and ratings to users to enhance transparency.
2) Risk warning mechanism: If potential risks are identified when integrating a protocol, we immediately halt integration to fully protect user assets.
3) Project party screening: We rigorously screen top projects to minimize the risk of subjective wrongdoing by project parties.
4) Risk response: In the event of risks, OKX Web3 DeFi promptly delists the relevant protocols and continues to monitor the situation to safeguard user interests.
Currently, we have partnerships with top DeFi protocols and public chains, including the TON ecosystem (Ston.fi), the Solana ecosystem (Jito), established Ethereum protocols (Lido, Uniswap, Compound), emerging protocols (Pendle, Eigenlayer, Babylon, ether.fi, Zircuit), and the SUI and SEI public chain ecosystems. Essentially, top public chains and protocols are partners of the OKX Web3 DeFi team.
Maintaining Competitiveness in a Rapidly Changing Market
OKX Web3 Team: Firstly, we have a mature, sensitive, and comprehensive internal and external detection system to quickly identify market trends and make reasonable evaluations.
Secondly, with the strong collaboration between OKX Web3 DeFi and our partner teams, we can quickly start chain analysis and protocol integration at the first judgment of integration, and promptly implement front-end templates or design new product forms for rapid deployment to users.
Lastly, we value talent and continuous technological innovation. The core competitive advantage of OKX Web3 DeFi ultimately comes from talent and technological innovation. We gather outstanding industry professionals and believe that we can maintain competitiveness in the face of the rapidly changing market environment.
Product Planning and Future Innovation Directions
OKX Web3 Team: There are many anticipated upcoming features, such as 1) a more comprehensive DeFi gameplay center, with the first phase already launched based on Babylon, and more protocols and convenient product iterations to be released in the future. 2) A revamped new reward module to provide users with more rewards and better reward display methods. 3) Discovery of new chains such as TON and more new protocols. 4) Continuous iteration of the points module to make the display and trading of points more visual, making points one of the assets that DeFi users can manage.
Our future innovation direction mainly focuses on two aspects:
1) Simplifying complex protocols: With a sufficient number of protocols and chains aggregated, we will gradually provide users with richer gameplay guidance, giving users a more comprehensive DeFi experience. We aim to optimize DeFi trading strategies to a certain extent for protocol users without custodial funds, balancing risks and returns, and enhancing the overall DeFi experience.
2) Open collaboration and permissionless: In the future, we will open up more permissions for partners, including the reward module and DeFi API. OKX Web3 DeFi will not only be a product on the OKX platform but will also allow more products to integrate with OKX Web3 DeFi. We will also open up rewards and more services to B-side clients such as project parties, and gradually transition to a permissionless DeFi on-chain tool to provide more services to B-side clients.
The Future of DeFi
OKX Web3 Team: Since DeFi Summer, DeFi has been an important theme in the Web3 field. Although the current hype around DeFi is not as strong as before, it remains the core gathering place for funds and OG users on major public chains, maintaining a high total value locked TVL. Currently, DeFi has gained new vitality through emerging protocols such as re-staking, and the annualized yield APY of many protocols still exceeds 10%. We believe that more interesting new protocols will emerge in the future, leading DeFi to new peaks.
OKX DeFi will always keep up with market trends, rapidly integrate emerging protocols, and continue to safeguard user asset security, striving to provide users with a better DeFi participation experience.
Learn More about OKX Web3 Invisible Infrastructure
To learn more about the OKX Web3 wallet's invisible infrastructure content, you can click to read:
Disclaimer:
This content is for reference only and should not be considered (i) investment advice or recommendations, (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 this information. Digital assets (including stablecoins and NFTs) are subject to market fluctuations, involve high risks, and may depreciate 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. For your specific situation, please consult your legal/tax/investment professionals. 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 governed by separate terms of service. You are responsible for understanding and complying with applicable local laws and regulations.
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