Improving the User Experience of On-Chain Structured Products
Index Coop, a decentralized autonomous organization (DAO), is addressing the limitations faced by on-chain structured products in the digital asset industry. In a recent report, Index Coop highlighted the infrastructure challenges faced by this nascent sector, including a lack of cross-chain asset support, high maintenance costs, and difficulty in rebalancing on-chain products. To improve the user experience, the engineers at Index Coop are exploring auction-based rebalancing as a potential solution. Despite the potential of structured products, they currently represent a small fraction of the crypto market, accounting for only 0.21% of the total value locked. However, their adoption and growth could signify the industry’s increasing sophistication and appeal to mainstream investors.
Key Points:
- On-chain structured products face infrastructure limitations in the digital asset industry.
- Challenges include a lack of cross-chain asset support, high maintenance costs, and difficulties in rebalancing on-chain products.
- Index Coop is working to improve the user experience by exploring auction-based rebalancing as a potential solution.
- Structured products currently account for only 0.21% of the wider crypto market.
- Adoption and growth of structured products could indicate the industry’s increasing sophistication and appeal to mainstream investors.
Hot Take:
The limitations faced by on-chain structured products hinder their widespread adoption and usage. However, the efforts of Index Coop to improve the protocol and infrastructure show promising developments. By addressing the challenges and exploring innovative solutions, the user experience for structured products can be enhanced, potentially attracting more investors to the sector. As the crypto market continues to mature, the growth of structured products could signify a significant step towards mainstream acceptance and utilization.
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