/

Lightpaper

/

Challenges in DeFi

Table of Content

Challenges in DeFi

A precise definition of what OROKAI is — a software layer with smart contract integrations across multiple chains — and what it is not: a bank, broker, custodian, or investment adviser.

Why Most People Still Aren't Using DeFi

There are 5.3 billion people with internet access. Around 2.1 billion have bank savings above $1,000. The total value sitting in global savings accounts exceeds $90 trillion.

The number of people actively using DeFi? Approximately 7 million.

Target Audience

2.1 Billion

Banked with >$1k savings

Active Participation

7 Million

Unique DeFi Wallets (Q4 2024)

The Adoption Gap

99.67%

Remaining Potential

0.33%

Market

Penetration

A 99.67% Opportunity

The current DeFi user base is just a tiny sliver of the global banked population.

Sources: ITU 2024, World Bank 2023, Dune Analytics Q4 2024, DeFiLlama, OECD

Target Audience

2.1 Billion

Banked with >$1k savings

Active Participation

7 Million

Unique DeFi Wallets (Q4 2024)

The Adoption Gap

99.67%

Remaining Potential

0.33%

Market

Penetration

A 99.67% Opportunity

The current DeFi user base is just a tiny sliver of the global banked population.

Sources: ITU 2024, World Bank 2023, Dune Analytics Q4 2024, DeFiLlama, OECD

This isn't an education problem. Most people understand the idea of earning more on their savings. The problem is that actually doing it requires developer-level knowledge.

What Stops People — In Their Own Words

A 2023 ConsenSys study of 15,000 crypto users asked why they hadn't gone deeper into DeFi. The answers were consistent:

68%

It's too technically complex

54%

Fear of losing funds through an error, hack, or lost seed phrase

47%

Don't understand the costs (gas, slippage, fees)

39%

Don't know which protocol to trust

31%

The process requires too many

68%

It's too technically complex

54%

Fear of losing funds

47%

Don't understand

39%

Lack of trust

31%

Steps

Notice what's not on this list: "I don't believe in DeFi" or "I don't want better returns." People want in. The door is just too hard to open.

The Journey of Pain

Here's what actually happens when someone decides to stake ETH for the first time — without any help.

1

Choose a wallet

MetaMask vs. Rabby vs. Rainbow vs. Ledger vs. Trezor. Which one is safe? This alone takes 30–60 minutes of research.

2

The seed phrase

12 random words appear on screen. "WRITE THIS DOWN AND NEVER SHARE. If you lose it, you lose everything." The 25% of users quit here.

3

Buy ETH

If via a centralized exchange: KYC verification takes 1–3 days, plus transfer fees. If via a DEX: you need ETH to pay gas fees before you have ETH. A genuine catch-22.

4

Pick a protocol

Lido? Rocket Pool? Coinbase? Native staking? Each has different minimums, risks, fee structures, and terminology. 15% of remaining users quit here.

5-8

Connect, approve, stake, verify

Multiple transactions. Multiple gas fees. "Unlimited approval" pop-ups that feel dangerous.

1

Choose a wallet

MetaMask vs. Rabby vs. Rainbow vs. Ledger vs. Trezor. Which one is safe? This alone takes 30–60 minutes of research.

2

The seed phrase

12 random words appear on screen. "WRITE THIS DOWN AND NEVER SHARE. If you lose it, you lose everything." The 25% of users quit here.

3

Buy ETH

If via a centralized exchange: KYC verification takes 1–3 days, plus transfer fees. If via a DEX: you need ETH to pay gas fees before you have ETH. A genuine catch-22.

4

Pick a protocol

Lido? Rocket Pool? Coinbase? Native staking? Each has different minimums, risks, fee structures, and terminology. 15% of remaining users quit here.

5-8

Connect, approve, stake, verify

Multiple transactions. Multiple gas fees. "Unlimited approval" pop-ups that feel dangerous.

Total time: 4–8 hours (without KYC) or up to 7 days (with) Estimated completion rate: 35–40%

The majority of people who try — give up.

DeFi Is Fragmented

Even for those who push through, the experience stays difficult. The same strategy — say, staking ETH — looks completely different depending on where you do it.

Lido, Rocket Pool, Coinbase, native staking, and centralized exchanges all offer "ETH staking." But the minimum amounts, lock-up periods, fee structures, withdrawal processes, and risk profiles are entirely different. And they describe themselves using different terminology — APY, APR, accruing, claimable — that means different things in each context.

A non-technical user trying to compare options isn't just confused. They're comparing apples to motorcycles.

On top of that, DeFi moves fast. Protocols update. Pools change. Conditions shift. Keeping up requires continuous monitoring that most people simply don't have time for.

Other Industries Solved This Problem

DeFi in 2025 looks a lot like other technologies did just before they went mainstream.

Email in the 1990s required configuring POP3 and SMTP servers, managing different interfaces for every provider, and dealing with constant spam. Then Gmail arrived — one account, one interface, it just worked. Email went from 100 million to 1.8 billion users in a decade.

E-commerce before Stripe meant months of custom payment gateway integration, different compliance requirements per country, and manual settlements. Stripe reduced that to seven lines of code. Millions of businesses came online overnight.

Getting a taxi before Uber meant not knowing who was coming, not knowing the price, and paying cash with no guarantee of availability. Uber showed the price upfront, tracked the driver in real time, and handled payment automatically. The average wait time dropped from 15 minutes to 2.

In each case, the underlying technology didn't change. What changed was the layer on top — the one that hid complexity, standardized the experience, and showed costs before you committed.

DeFi has the technology. It still lacks that layer.

What That Layer Needs to Do

Based on everything above, the solution is clear in principle:

complexity

Hide

Users shouldn't need to think about RPC nodes, gas tokens, or bridge mechanics.

experience

Standardize

One interface, consistent terminology, across protocols.

costs

Show upfront

No gas fee surprises after the transaction is already sent.

control

Kept by user

Self-custody means your assets are yours, not held by a platform.

complexity

Hide

Users shouldn't need to think about RPC nodes, gas tokens, or bridge mechanics.

experience

Standardize

One interface, consistent terminology, across protocols.

costs

Show upfront

No gas fee surprises after the transaction is already sent.

control

Kept by user

Self-custody means your assets are yours, not held by a platform.

The Core Insight

DeFi doesn't have an adoption problem. It has a usability problem.

The technology works. The protocols generate real activity. The opportunity is real — $90 trillion in global savings sitting in accounts earning near-zero returns, and a DeFi ecosystem with only 0.05% penetration.

What's missing is the bridge. A simple, transparent layer that handles the complexity, shows the costs, guides the steps — and hands full control to the user at every point.

That's what Orokai is built to be.

All statistics cited are third-party estimates and subject to change. DeFi protocol returns are variable and not guaranteed. Historical analogies are illustrative only and do not imply equivalent outcomes for DeFi adoption.

Orokai is a software provider and does not offer financial advice. Protocol yields are variable. Service availability may depend on local regulations.

Legal

Social media

Orokai is a software provider and does not offer financial advice. Protocol yields are variable. Service availability may depend on local regulations.