Decentralized finance has evolved from two different words although both words are spoken combinedly. In this framework, a step has been taken to avail economic products through the blockchain which are decentralized for the availability of the generation. It is much like the digital currency that makes use of blockchain technology to operate in any currency with the sole ownership of the trader. In the Defi system also there are no requirements for a mediator to facilitate the work. In its earlier version, there had been certain issues such as lacking accessibility, scalability, security as well as control. The new version 2.0 is designed to fight such evils that were existent in the 1.0 version. At present, the definition of this framework is also evolving which we will discuss in the topic that I will discuss below.

Below is the topic, we will discuss why new version 2.0 has been brought and what were some of the shortcomings of the earlier version. If you are interested in bitcoin trading check the primary security concerns for bitcoin users .


The sole reason as of now for this project to come up in the digital world is to bring improvements in the existing defi version. This framework was empowered to disseminate economic services to users but this system still had some flaws as a result an upgrade was sought in this as the 2.0 version was evolved.


With the evolution of decentralized finance, we have come across this new version which is 2.0. Below I am going to mention all those shortcomings that this new and enhanced version strives to eliminate.

1.  The inaugural shortcoming about which we will talk is scalability. As we know this framework being too congested due to its notoriety, as well as over-usage, makes the process much sluggish for its users. On the other hand, there are also fees associated which also makes it a little expensive. Even the simple functions become delayed ending up making the process costlier for the users. This would be the first shortcoming that the current project aspires to eliminate for a better user experience.

2. Then the next shortcoming will be decentralization. As we are very well familiar that such a framework tries to make the process decentralized but it has been found that many projects that are running on this mechanism are barely following the principle of decentralization or the DAO. This is the next shortcoming that is being resolved by the new version of Defi.

3. The very next and the essential one is security. Due to half-knowledge, the users tend to spend a higher amount out knowing about the safe sides. Despite the audits, they become useless due to the upgrade. Hence this is another shortcoming that the new version tries to solve.

4.  The ultimate shortcoming that we will be talking about is liquidity. Due to the large numbers of liquidity pools, there are chances of the formation of clogging of the funds. Also, the staked tokens in any pool become useless for the time they are staked. Hence the right next shortcoming that it strives to overcome is liquidity.


The blog has written about the defi 2.0 version and how it strives to overcome the shortcomings of the previous version. There are many found limitations to it, that the current project strives to deal with. I hope my effort would give you a positive insight about the topic in your mind about the defi 2.0 version.