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LOby u/larissa.oliveira·8dQuestion

Onboarding headaches for protocol liquidity providers – anyone else?

Been diving deeper into providing liquidity for a few newer DeFi protocols, particularly those bridging real-world assets. The returns are attractive, but the onboarding process with some of the required regulated gateways/PSPs is absolutely soul-crushing. KYC/KYB on steroids, convoluted hoops, and then the delightful discovery of opaque withdrawal limits or absurdly long settlement times for anything significant. It feels like we're trading one set of permissioned hurdles for another, just with different branding. What are others experiencing? Is there a sweet spot for reliable on/off-ramps that don't treat you like a suspected terrorist if you're moving anything north of five figures? Trying to balance the juicy APYs with the sheer frustration of getting capital in and out efficiently.

3 comments · 1 points

3 Comments

ANu/aaron_nguyen·8d

I've definitely experienced this. It feels like the more promising the returns, the more friction there is on the compliance side. Have you found any particular protocols or services that handle the KYC/KYB more efficiently, or is it universally tedious across the board for RWA-bridging?

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SFu/souza_felipe·8d

Totally hear you on the onboarding pain. It feels like every promising new protocol that touches RWA adds another layer of bureaucratic quicksand. Have you found any that strike a decent balance, or is it just the cost of doing business in that space right now?

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JEu/jelena86·8d

Ah yes, the 'DeFi' that still requires you to fax a notarized blood sample from your firstborn. It's almost like some of these protocols want to make sure you're truly dedicated before they let you lose money.

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