Peridot Protocol
  • Introduction
    • Overview
      • What is Peridot?
      • Our Mission & Vision
      • Key Value Propositions
    • Why Cross-Chain DeFi?
      • Current Challenges in DeFi
      • How our Hub & Spoke model addresses these challenges
  • Architecture & Design
    • System Architecture
      • Overview of the Hub & Spoke Model
    • Core Components
      • Compound Based Lending & Borrowing Modules
      • Wormhole Integration: Token Transfer with Payload
      • On-Chain Accounting & Interest Rate Models
    • Integration Details
  • Easy Mode: Onramp & Offramp for New Users
    • Overview of Easy Mode
    • Goals
    • Key Features
  • Contact
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  • Fragmented Liquidity
  • Complex User Experience
  • Slow Onboarding & Adoption
  1. Introduction
  2. Why Cross-Chain DeFi?

Current Challenges in DeFi

Despite incredible innovation, DeFi today faces critical limitations that prevent it from reaching mainstream adoption.

Fragmented Liquidity

  • Assets are siloed across different blockchains (Ethereum, Solana, Sui, etc.).

  • Lending protocols operate independently, creating inefficiencies and isolated capital.

  • Users must bridge assets manually, introducing risk and slippage.

Complex User Experience

  • Managing multiple wallets, gas tokens, and interfaces is overwhelming, especially for newcomers.

  • Cross-chain activity involves risky 3rd-party bridges and unfamiliar tools.

  • It takes too many steps just to lend or borrow across chains.

Slow Onboarding & Adoption

  • Web2 users find it difficult to engage with DeFi due to wallet setup, token purchases, and unclear flows.

  • Most protocols assume crypto-native knowledge, excluding the next billion users.

These issues limit capital efficiency, hurt UX, and keep DeFi from scaling to its full potential. That’s where Peridot comes in.

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Last updated 11 days ago