When individuals deposit money into a traditional savings account in the world of finance, they typically expect a reliable return on investment by providing liquidity to the financial institution. However, banks have built trust over time through consumer protections and their extensive experience in managing assets and navigating volatile markets. In contrast, decentralized finance (DeFi) platforms lack the same level of investor confidence. Many decentralized exchanges (DEXs) lack the necessary experience to effectively capture value from the liquidity they offer.
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