A Thread on Why Defi Needs Cairo ( @Starknet coded)
DeFi was meant to change everything. It promised a world without banks or middlemen, where anyone with internet access could lend, borrow, or trade freely. For some time, it really delivered on that promise. Billions of dollars came in, new protocols appeared every week, and it seemed like we were creating the future of finance.
There have, however, been some challenges. Sometimes, it takes a little too long for transactions to go through. Also, the fees can be cutthroat where there's a rise in demand. Developers are in this gilded cage soldered by technical ceilings. Ethereum is the future and the strength of DeFi, yes, but it wasn't made with a vision that DeFi would be this big. This is why Cairo, Starknet’s programming language, is important. It is here to define the newest era of DeFi.
Has DeFi hit a wall?
Yes, we can speak of the greatness of DeFi and still be honest. DeFi is powerful, but it is an egg. One gets rotten in the crate and it's a race against time to make sure the others don't follow suit. Put simply, Defi is fragile.
It is congested. Ethereum has many fans and because of this, the fees shoot up. You might just want to do a simple swap and it ends up costing an arm and a leg.
Its design space is limited. Ethereum speaks solidity which is good, but not good enough to deal with advanced cryptography. Complex transactions are usually expensive to run.
Rollups, sidechains, and bridges are used like patches. It's like using another cloth to patch a torn shirt. It's okay for a while, but in the long run, it doesn't solve the fundamental issue of scalability.
All rise for Cairo
Cairo is different because instead of trying to fit into old frameworks, it rewrites the rules.
1. With Cairo, thousands of transactions are wrapped up in a single proof. Eventually, the proof is sent to Ethereum, which verifies it at a low cost. What this means is that there are cheaper gas fees and faster settlements.
2. Cairo is flexible. It unlocks complex logic and multi-chain lending and real-time risk management without stressing or depending heavily on Ethereum.
3. Solidity was DeFi 1.0. Cairo is secure and the math itself proves correctness, not only assumptions.
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Last Mission : Secret Code 🔑
AMA starts in 31 hours with
@ZeroKnight_eth & @0xcryptosonny & @hj_kuma
Set reminder👇
https://t.co/PdhZo6F2pR
Special “secret codes” will be shared live multiple times during the AMA.
Tune in to get a chance to win an APT game code:
1) RT/quote the AMA post
2) Submit your RT/quote link + the "secret code" in this form: https://t.co/RqZIUPKHEn
Winners will be selected randomly.
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