Everything You Need to Know About The Challenges Plaguing The DeFi Ecosystem and Spherium Finance

Evan  |  Jun 13, 2021

The traditional perception of money involves a centralized authority distributing fiat currency to the people. While this hierarchical system has worked well for the past couple of centuries, the current business landscape seeks more flexibility and autonomy over the process of exchanging values.

That’s where decentralized finance or DeFi comes in.

Creating a system where financial transactions can be carried out seamlessly without the interference of a governing body or a "middleman" has been the main goal of the DeFi sector.

Based on the advantages the DeFi markets offer, it is no surprise that the sector has seen tremendous growth in the last couple of years with the unicorn projects including among others Compound, Maker, Aave, Uniswap, SushiSwap, Curve Finance, and Yearn Finance. The transaction volumes and total value locked across DeFi projects are currently estimated at $59 billion, witnessing exponential growth in 2021. Nevertheless, some fundamental issues are still plaguing the DeFi space:

1. Complicated User Interface/Experience (UI & UX)

The current digital age, Web 3.0, demands an intuitive user experience without sacrificing the technical complexity of products. However, the current solutions in the DeFi space are geared towards technically proficient individuals thereby limiting broader adoption of the DeFi platforms.

A wider DeFi adoption requires DeFi products with user-friendly interfaces, simple options designed for less technically-minded retail users. To discover how DeFi works and to feel comfortable using DeFi solutions will doubtlessly be deterred by a complicated learning process.

Also, since crypto wallets are an important part of the DeFi ecosystem, DeFi platforms must provide a means for multi-currency integration. Therefore, to become universally adopted, the industry focus should shift from features or functionalities to user experience.

2. High Transaction Fees

The fundamental motivation behind cryptocurrencies was to provide a decentralized medium for carrying out financial transactions while eliminating intermediaries and keeping the costs low. These challenges have been resolved only to a certain extent as growing demand for resources and other market factors have led to a spike in transaction charges, especially in the Ethereum blockchain. The average transaction fee on the Ethereum network stood at about 32.50 Gwei as of June 8, 2021. 

Source: Ycharts.com

3. Fragmented DeFi Landscape

To encourage mass adoption, the DeFi space should have a seamless flow. An immersive consumer experience should be a key element of DeFi transactions.

Unfortunately, the current DeFi ecosystem is fragmented making it difficult for new users to adopt DeFi. A new user who wants to trade cryptocurrencies has to first create an account on a DEX and if that same user wants to lend cryptocurrency, he is also required to create another account on a lending platform. This can be frustrating and result in a frustrating user experience.

While some lending platforms have identified this problem and are trying to solve it by collaborating with other service providers in the space, the current framework is still far from perfect.

The Spherium Finance Solution

Spherium Finance is a cutting-edge DeFi platform that intends to address the above challenges. It is a one-stop platform offering a unified DeFi solution including a crypto swap, money market product and a universal, cross-chain compatible crypto wallet.

Thus Spherium Finance is launching an entire suite of DeFi products. 

I. HyperSwap

HyperSwap is a decentralised platform for swapping ERC20 tokens using a cutting-edge Automated Market Maker (AMM) algorithm. It enables liquidity providers rather than intermediaries to make profits by reducing the prices and lowering the asset value back to the market price.

HyperSwap is among the pioneers in cross-chain AMMs enabling users to swap tokens across Ethereum and BSC networks. Its intuitive interface allows users to switch across different chains with a single click.

HyperSwap is also a layer-2 protocol for mitigating high transaction fees (gas fees) while at the same time maintaining the security guarantee of layer-1, also known as the settlement layer.

II. Spherium Wallet

Spheirum Wallet is a cross-chain compatible universal crypto wallet. It acts as the gateway to all Spherium products. The wallet can be connected to any DeFi platform via the Wallet Connect protocol. Customers will be able to use all the services provided on the Spherium ecosystem anytime and anywhere from their mobile device. Meanwhile, Spherium ensures the safety and security of the user's assets through the adoption of best practices in cybersecurity. 

III. $SPHRI Token

$SPHRI is the native utility token of the Spherium ecosystem that will allow Spherium users to access the complete palette of Spherium products and services and also act as the governance token for the ecosystem. $SPHRI token holders will be able to submit proposals as well as vote e.g. on new proposals and new liquidity pools on HyperSwap. 

Users can earn $SPHRI through the following: 

  • Incentive for liquidity providers to HyperSwap; 
  • Incentive for HyperSwap traders/users;
  • Incentive for SPH token stakers; 
  • Incentive for SphereComp lenders. 
  • IV SphereComp 

    SphereComp represents decentralized money markets allowing users to lend and borrow digital assets across different blockchains. The interest rates for such loans are determined by the law of demand and supply. 

    The Spherium team recently announced its dual Initial Decentralized Offering (IDO) (medium link here) across BSCPad and PentaLaunch. This will be one of the first insured IDOs on PentaLaunch, and it will be happening on June 16, 2021. Spherium has insured its IDO through InsurACE. It’ll ensure the safety of the funds of the participants against any security threat. Net supply available for public sale on PentaLaunch will be 128,205 $SPHRI at 1 $SPHRI to 0.195 USDC. 

    PentaLaunch

    • Opening time: 16/06/2021 04:00 AM UTC
    • Closing time: 16/06/2021 10:00 AM UTC
    • Time to claim $SPHRI: 16/06/2021 12 PM UTC
    • BSCPad 

      The net supply available for the public sale event on BSCPad will be 641,025 $SPHRI.

      • Staking Eligibility Deadline: 16/06/2021 03:00 AM UTC
      • Allocation Round: 16/06/2021, 06:00 AM UTC
      • FCFS Round: 16/06/2021, 11:00 AM UTC
      • Pancakeswap Launch: 16/06/2021, 12:00 PM UTC
      • Time to claim $SPHRI: 16/06/2021, 12:00 PM UTC
      • More information about Spherium Finance is available under

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