Functions and Challenges of DeFi Gateways

I have discussed the basic things of deftly gateways in my last Post. Today I want to share some functions and challenges of DeFi Gateways.

User Registration:

To maintain the regulations of the country, it is very much required to have identity verification and KYC (Know Your Customer) information. Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. DeFi Gateways often require users to complete identity verification procedures. This includes providing identification documents and personal information. Users create accounts on DeFi Gateway platforms, providing necessary information for identity verification.

Asset Transfer:

Users deposit assets into their accounts on the DeFi Gateway platform. These assets can be in the form of fiat currencies, cryptocurrencies, or other digital assets. So whatever the format of their asset they can easily transfer between the parties.

Asset Conversion:

The DeFi Gateway converts the deposited assets into DeFi-native assets, such as stablecoins. Bus ability in case of virtuality of the market is mitigated in this way. This conversion is usually conducted at current market rates and can involve fees.

Withdrawal:

When users wish to exit the DeFi space and convert their DeFi-native assets back into traditional assets.

Conversion Back to Fiat:

The DeFi Gateway converts the DeFi-native assets back into traditional assets.

Withdrawal to User's Bank Account:

The converted assets can be transferred to the user's bank account. In this way, this is completing the cycle from traditional finance to DeFi and back.

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There are some challenges associated with the DeFi gateways. Some of the challenges are Regulatory issues, Security of user's funds and Data, Liquidity Management, Educating the users, etc.

~ Regards,
VEIGO (Community Mod)

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