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

by
Alisa Davidson

Revealed: October 09, 2025 at 6:53 am Up to date: October 09, 2025 at 6:53 am

by Ana

Edited and fact-checked:
October 09, 2025 at 6:53 am

To enhance your local-language expertise, typically we make use of an auto-translation plugin. Please observe auto-translation might not be correct, so learn authentic article for exact info.

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

The dialogue was moderated by Sarah Shin, Enterprise Improvement Affiliate at 1inch, and included contributions from Ethan Hassall, Head of Enterprise Improvement 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 truly delivered in comparison with what has been overhyped.

Audio system famous that one of many optimistic facets of DeFi is its growing sophistication and depth. On the identical time, there was acknowledgment of disappointment relating to 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 sluggish and isn’t but aligned with the quick tempo of innovation inside the DeFi ecosystem.

A number of panelists emphasised that the unique imaginative and prescient of DeFi, courting again to 2018, was to supply a permissionless system together with different core ideas equivalent to trustlessness and decentralization. Whereas 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 notice the potential of open finance.

Audio system additionally noticed that many tasks have been constructing foundational infrastructure for a while, and every innovation cycle brings new use instances and enhancements. Nevertheless, the panel careworn that DeFi’s affect is most clearly seen in core verticals equivalent to funds and lending, which proceed to drive adoption in the present day. Addressing misconceptions, the dialogue highlighted that some perceived complicated use instances, equivalent to liquidity supplier rebalancing via brokers, are comparatively easy and may 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 as a result of ecosystem’s 24/7 accessibility, although trade-offs should be fastidiously thought-about.

The dialog additional emphasised that DeFi supplies customers with transparency, and regulatory compliance components equivalent to KYC lists can provide vital advantages. One other level addressed was the expectation that DeFi may rapidly penetrate institutional markets. Audio system 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. Safety concerns had been additionally famous as an ongoing space requiring substantial growth.

Developer Insights, Safety Commerce-Offs, And Strategic Approaches For Scalable DeFi Networks

The dialogue then shifted to the implications for builders, with panelists sharing insights and classes realized from their respective areas of experience. MetaMask emphasised the significance of making sturdy developer instruments, noting that these instruments stop the creation of redundant options or incomplete implementations. Constructing different login strategies took vital time attributable to person demand, however having an present person base allowed the corporate to deploy production-ready options rapidly with out compromising performance.

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

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

The panel additionally famous that whereas Layer 2 options provide potential for scalability and lowered prices, adoption isn’t assured. BitLayer shared classes on navigating the steadiness between safety, efficiency, and adoption, emphasizing that in 2025, it’s now 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 method is to focus growth on particular use instances slightly than trying to duplicate present 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 ought to be guided by distinctive options tailor-made to distinct person wants.

Safety, Consumer Expertise, And Laws As Key Factors For Development

The dialog then moved to extra classes in DeFi, starting with safety. The panel examined sensible approaches for designing methods that genuinely safeguard customers. Audio system emphasised the supply of on-chain insurance coverage, the applying of AI for safety functions, and using zero-knowledge expertise to handle each safety and scalability challenges. It was famous that almost all hacks happen attributable to primary 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. Consumer 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 sturdy developer instruments for these getting into the Web3 ecosystem.

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

Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising developments and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.

Extra articles