On-Ramp/Off-Ramp Friction for DeFi - Still a Bottleneck?
It's 2024 and we're still grappling with pretty significant friction points when it comes to moving between fiat and crypto, particularly for larger sums. Seems like every PSP has its own hoops, KYC/KYB is still a multi-day ordeal if you're not using the same old centralized exchanges, and the fee structures for ACH/wires can really eat into margins, especially when you're frequently rebalancing or taking profits. Liquidity for $ETH or $BTC is fine, but for the newer, more specialized DeFi tokens, finding a reliable off-ramp without massive slippage or extortionate spreads remains a challenge. Are folks finding any genuinely smooth, low-cost solutions for getting significant capital in and out of the DeFi ecosystem quickly and reliably, especially for amounts that move beyond the typical retail user? Or is it still a patchwork of compromises, jumping through hoops from one provider to the next?
The KYC/AML burden isn't going away, and frankly, it shouldn't. The real issue is the lack of standardization across different providers, leading to a fragmented and often frustrating user experience. If we could streamline that, it would be a huge step forward.