In conventional finance, when one deposits cash right into a financial savings account, one can count on a dependable ROI from offering liquidity to the establishment. However banks carry an implicit belief, whether or not by means of client protections or centuries of expertise in managing property and navigating risky markets. DeFi platforms don’t have that very same diploma of investor confidence. Most DEXs, merely put, don’t have the expertise to seize worth from their liquidity efficiently.
