Industry Experts Discuss DeFi Challenges And Opportunities At Hack Seasons Opportunity Mixer In Seoul
In Brief
At the Hack Seasons Opportunity Mixer in Seoul, industry experts shared insights on DeFi’s real-world adoption, developer challenges, security, user experience, and more.
At the recent Hack Seasons Opportunity Mixer held in Seoul on September 24th, prominent figures from the industry convened to discuss advancements in digital finance. One panel, titled “DeFi without illusions: the real lessons for builders,” offered attendees practical insights into how decentralized finance (DeFi) can develop more resiliently in the upcoming cycle.
The discussion was moderated by Sarah Shin, Business Development Associate at 1inch, and included contributions from Ethan Hassall, Head of Business Development at Treshold; LevX, founder of xDFi; Francesco Andreoli, Director of Developer Relations at MetaMask; and Kevin He, co-founder of BitLayer.
The panel opened with a discussion on what DeFi has actually delivered compared to what has been overhyped.
Speakers noted that one of the positive aspects of DeFi is its increasing sophistication and depth. At the same time, there was acknowledgment of disappointment regarding the real-world application of off-chain yield, which has not met earlier expectations. The panel agreed that adoption in real-world use cases remains slow and is not yet aligned with the fast pace of innovation within the DeFi ecosystem.
Several panelists emphasized that the original vision of DeFi, dating back to 2018, was to offer a permissionless system along with other core principles such as trustlessness and decentralization. While modern users may pay less attention to the latter two values, permissionlessness remains central to DeFi’s success. The consensus was that although progress has been made, the ecosystem still has ground to cover to fully realize the potential of open finance.
Speakers also observed that many projects have been building foundational infrastructure for some time, and each innovation cycle brings new use cases and improvements. However, the panel stressed that DeFi’s impact is most clearly seen in core verticals such as payments and lending, which continue to drive adoption today. Addressing misconceptions, the discussion highlighted that some perceived complex use cases, such as liquidity provider rebalancing through agents, are relatively straightforward and can often be achieved with simple scripts. Panelists also noted that while DeFi solutions often involve layers of abstraction, the underlying use cases remain powerful due to the ecosystem’s 24/7 accessibility, though trade-offs must be carefully considered.
The conversation further emphasized that DeFi provides users with transparency, and regulatory compliance elements such as KYC lists can offer significant benefits. Another point addressed was the expectation that DeFi could quickly penetrate institutional markets. Speakers cautioned that this transition remains a long-term challenge, as institutional clients continue to be concerned about privacy and the exposure of trading strategies. Security considerations were also noted as an ongoing area requiring substantial development.
Developer Insights, Security Trade-Offs, And Strategic Approaches For Scalable DeFi Networks
The discussion then shifted to the implications for developers, with panelists sharing insights and lessons learned from their respective areas of expertise. MetaMask emphasized the importance of creating robust developer tools, noting that these tools prevent the creation of redundant solutions or incomplete implementations. Building alternative login methods took significant time due to user demand, but having an existing user base allowed the company to deploy production-ready features quickly without compromising functionality.
xDFi discussed challenges that had been underestimated at the project’s inception. Two years ago, there were extensive debates over whether an intent-based approach or a share-sequence model was more effective, particularly in the development of intent standards. The team identified opportunities to optimize liquidity synchronization without slippage, while also addressing the need to design trustless and permissionless systems that minimize points of potential exploitation.
Treshold highlighted the complex trade-offs involved in balancing decentralization, security, and usability. In the context of wrapped Bitcoin, opportunities frequently arose to partner with custodians who could mint BTC without legal or technical claims on the underlying assets. The company emphasized that maintaining a commitment to trust and transparency, rather than prioritizing total value locked (TVL) metrics, was a challenging but necessary decision.
The panel also noted that while Layer 2 solutions offer potential for scalability and reduced costs, adoption is not guaranteed. BitLayer shared lessons on navigating the balance between security, performance, and adoption, emphasizing that in 2025, it is no longer feasible to build a new ecosystem from scratch as Ethereum once did. Convincing users and developers to migrate requires clear differentiation and unique value propositions. BitLayer’s approach is to focus development on specific use cases rather than attempting to replicate existing Layer 2 ecosystems. The overarching conclusion for Layer 2 and Layer 3 networks is that imitation of successful models like Arbitrum is unlikely to succeed, and innovation should be guided by unique solutions tailored to distinct user needs.
Security, User Experience, And Regulations As Key Points For Growth
The conversation then moved to additional lessons in DeFi, beginning with security. The panel examined practical approaches for designing systems that genuinely safeguard users. Speakers emphasized the availability of on-chain insurance, the application of AI for security purposes, and the use of zero-knowledge technology to address both security and scalability challenges. It was noted that most hacks occur due to basic errors, and attention was drawn to the importance of managing losses by reacting to the time window hackers exploit between stealing and transferring funds.
The discussion also addressed the issue of adaptability. User experience continues to pose a barrier, as DeFi remains complex for mainstream audiences. Panelists highlighted prediction markets and centralized exchanges offering staking as potential avenues for onboarding retail users to DeFi. Simplifying the onboarding process requires creating distinct user journeys tailored to different audiences, including streamlined on-ramps and off-ramps, crypto card integrations, and stablecoin solutions. To facilitate adoption by newcomers, abstracted solutions are essential, alongside robust developer tools for those entering the Web3 ecosystem.
Finally, the panel discussed regulation, considering whether it serves as a catalyst for DeFi growth or acts as a constraint that slows innovation.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
