DEFI'S LAST MISSING PIECE

Summary from the TLDR Crypto newsletter

Onchain DeFi continues to trail CEXes not for lack of innovation but due to painful fiat onramps that carry 3–10% fees, >50% failure rates, and slow settlements, causing over 90% user drop-off at the first step. CEXes treat fiat deposits as loss leaders to deliver virtually free, instant, and reliable onramps. The proposed solution is for revenue-generating DeFi protocols to allocate a portion of their revenues to subsidize onramp providers in real time, thereby matching CEX-style UX. Such onramp subsidies could unlock mainstream user growth and close the gap between CEX and DeFi adoption.