Jaylissa Lea Speaks on the Problems DeFi is Solving Around the World

When people talk about Web3, they rush to ponder cryptocurrencies (probably Bitcoin) and non-fungible tokens (usually Bored Ape Yacht Club). But the common denominator between these commodities, well-known and obscure, is rarely brought up. For enthusiasts, decentralized finance is the glue that sticks all of Web3’s diverse facets together and the most significant reason to trade on the blockchain. Insiders and public figures alike have been criticized for promoting assets at face value. Jaylissa Lea arguably does not fall into that category. In a noteworthy move, she has recently given a statement about the intricacies of decentralized finance and what separates it from the traditional system consumers are used to. 

The most popular cryptocurrency exchanges, such as Coinbase, are centralized and based in the open market. As a result, decentralized finance (or DeFi) could be seen as Lea’s differentiator from other figures online. Upcoming partnerships with the likes of BlockchainTV could see her spread that insight to wider audiences. Lack of trust is a significant issue in the space—helping users to understand the basis of their investment is thought to be a critical way of overcoming it.

“The goal of DeFi is to remove the common errors we get with centralized finance institutions,” Lea said. “When we put our money into banks, they get to use it, and we don’t know what happens to it. DeFi allows you to do what you can with a bank, such as lending and borrowing, but with complete control.”

Common problems Web3 advocates have with centralized finance include low-interest rates, fees, and financial stagnation. The DeFi movement is growing, through decentralized cryptocurrency and NFT exchanges, to find a way around those issues. Lea’s comments are likely to catalyze a widespread move away from traditional banks and increase her profile as an ‘educator’. 

“When people think about crypto, they think ‘buy low and sell high’,” she added. “But using DeFi to borrow and lend can be less volatile. Diversifying into different platforms is a safety net while making your money work for you.”

All aspects of Web3 are seeing a rapid development phase, but DeFi’s is considered exceptionally fast due to its relative age. Many active blockchain users are not familiar with its characteristics, let alone people still invested in legacy financial institutions. Currently, transactions on the blockchain are governed by smart contracts, leaving consumers with little recourse in the event of human error. Observers expect a transition from DeFi 2.0 to 3.0 soon, with more comprehensive security features and insurance provisions to encourage investment.