The world of decentralized finance attracts a lot of attention from hopefuls and risk-takers. Despite its promising future, the ecosystem cannot resolve disputes transparently. Your funds are probably gone forever if you accidentally sent them to the wrong wallet address. Therefore, dispute resolution and legal protection will prove essential to making DeFi appealing to institutional players. DeFi is too risky in its current form To most people, decentralized finance is an industry segment that lets one gain wealth passively. With the right crypto assets, one can lend, borrow, staking, farm yield, earn NFTs, and a list of other opportunities. It all sounds great on paper, but the reality can be very different. Regardless of how one wants to spin the narrative, decentralized finance is a risky industry. Not only are users dealing with volatile assets, but the protocols and services are a risk factor as well. For example, a poorly coded smart contract could result in a hack and funds being stolen. More often than not, users will not see their money returned to them when such an incident happens. In an industry where everything is decentralized, there is still plenty of manual intervention. Developers need to keep adding features and services, either through community voting or their own decisions. But there is always a “human factor” in the equation that will create inherent risk. If something were to go awry, there ...
