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  • Introduction
    • What We Do
  • The DeFi Problem
  • How iLayer solves it
  • Use Cases
  • Architecture
    • RFQ
  • Hub & Spoke
    • OrderHub
    • OrderSpoke
  • Router
    • LayerZero Router
    • Axelar Router
    • NullRouter
    • AxLzRouter
  • Solvers
  • Integration
    • Industries
    • EVM Smart contracts
      • Example: cross-chain LPing on Aave
      • Example: cross-chain contract call
  • Audit
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  • Asset Fragmentation
  • Bridge Complexity
  • Slow GTM
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The DeFi Problem

DeFi faces critical challenges hindering mainstream adoption and optimal functionality.

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Last updated 3 months ago

1

Asset Fragmentation

Asset fragmentation occurs when liquidity pools and assets are scattered across multiple isolated blockchain ecosystems. This fragmentation leads to higher costs, increased slippage, diminished capital efficiency, and poorer user experiences.

  • Existing solutions (e.g., cross-chain DEX aggregators like Li.Fi, 1inch Fusion) partially address fragmentation but typically:

    • Require significant development resources to integrate and maintain.

    • Depend on inefficient routing, increasing transaction fees and delays.

2

Bridge Complexity

Cross-chain bridging technology (Wormhole, Li.Fi Axelar, etc.) requires deep technical knowledge, extensive documentation, and complex implementation processes. These complexities significantly delay deployment and deter developers from pursuing cross-chain capabilities.

  • Li.Fi, Axelar, Wormhole, and similar bridges:

    • Often necessitate custom integrations for each blockchain supported.

    • Lead to additional auditing costs due to custom implementations.

3

Slow GTM

Launching cross-chain functionalities traditionally involves extensive planning, careful architecture, complex audits, and prolonged development cycles. This significantly delays innovation and deployment speed, reducing competitive advantage.

  • Custom-built cross-chain solutions typically:

    • Require extensive security audits, often exceeding months in duration.

    • Increase initial implementation and ongoing maintenance costs.

    • Delay product iterations, reducing flexibility in adapting to market demands.

💢 Asset Fragmentation

Liquidity is trapped across multiple chains, leading to inefficient capital usage and increased slippage.

❌ Bridge Complexity

Complex bridging protocols require extensive documentation and technical expertise, hindering rapid deployment.

🐢 Slow GTM

Extensive audits, detailed architecture design, and prolonged development cycles delay innovation and market entry.