Design Challenges Remain, But the Prize Is Trillions
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FHE-powered DeFi won’t happen overnight. Liquidations, oracles, MEV protection, and UX all present new puzzles. Encrypted values complicate triggers, oracles must adapt, and front-running still needs stronger defenses.
Yet none of these issues are dealbreakers. With FHE moving from academic concept to real tech, DeFi could soon combine Swiss-bank confidentiality with onchain transparency — drawing in trillions of institutional capital without sacrificing decentralization.
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The trillion-dollar opportunity is real, but only for those who can fix core design limitations first.