Challenges/ Problems:

Mainstream institutional investors kept themselves away from this crypto market for a long time although the blockchain itself became a buzzword around 2017 when Bitcoin hit its all-time high around $20,000, it has taken almost 4 years for institutional investors to start allocating their funds for Crypto, still today these giants would invest in Bitcoin, Ethereum and similar coins.

However, a major Investment requirement is for the projects which will be addressing and correcting real-world issues using blockchain, which is not limited to just utilizing a coin as currency. Blockchain is now being utilized in different sectors/ industries to solve their problems like lack of transparency, distribution of data, security of data, etc. Considering the adoption of a blockchain at the enterprise level nowadays it is very important to protect the project against hacking, technical faults, etc. to make sure the operations within the company will not get hampered. Thus a continuous audit and system upgrade are needed which need continuous collaboration from developers but, sometimes developers fail to continue their work or their code gets exploited by bugs that go beyond fixation and prevention of possible loss. Unfortunately few promising projects in the past have fallen into this trap and have to be abandoned.

Following are the key challenges within the DeFi industry

1. Lack of good and reliable decentralized exchange and liquidity for them

2. Unfair distribution of initial tokens

3. Wrong farm structures

4. Soft rug pulls and developers manipulation of project

5. Loss of investment due to bugs and other exploits

A lot of DeFi Projects launches decentralized exchanges which most of the time are not much reliable or too slow as compared to it's their centralized counterparts which provides a bad User experience that further result in less adaptation for the project although project quality is not the only issue that read the problem lack of liquidity is one of the major issues for decentralization exchanges. Lack of liquidity causes different issues like relevant trade prices compared to the market, inability to complete the trade, or slow trade execution.

Distribution of tokens at the time of presales allows whales to manipulate by purchasing more or distribution is done for farming in such a small amount that farmers won’t get good enough liquidity. Another part is most of the token sale is acquired by the developers only and not by the actual investors. Thus token price manipulation might happen when it gets listed on different exchanges.

The other problems like farm structures and their design, most of the current farms are not good enough to sustain forever, so continuous changes and upgrades are needed in the farm. Also, poor initial token distribution is also present on most of the farms. Although there are few features like time lock, antiwhale lock, etc are available in some farms and it protects investments, as well as problems like a soft rug, pulls, exploits, etc.

Along with these soft rug pulls are those conditions where developers are taking such actions which will cause projects to not function properly, also these are