> For the complete documentation index, see [llms.txt](https://ibran-fi.gitbook.io/ibran-fi-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ibran-fi.gitbook.io/ibran-fi-docs/documentation/overview/problem-and-solution/problem.md).

# Problem

## High Fees and Slow Settlement on Other Chains

Many DeFi protocols built on congested Layer 1 networks suffer from high gas fees and delayed transaction confirmations. This makes lending, borrowing, and yield strategies costly and inefficient.

## Limited Scalability for DeFi Protocols

DeFi applications often face scalability challenges on traditional Layer 1 blockchains. High demand and limited throughput reduce user experience and limit adoption.

## Security Risks in Cross-Chain Communication

Cross-chain activity typically depends on centralized bridges, introducing counterparty risk and vulnerabilities to exploits. This reduces trust for both individual and institutional users.

## Lack of Transparent and Dynamic Interest Models

Some lending platforms use opaque interest rate mechanisms or rigid parameters, which can result in unfair borrowing costs and liquidity imbalances.