Starknet Allocates 100 Million STRK to Address DeFi’s Challenges in Scalability and Security

Starknet has set aside 100 million

tokens to strengthen decentralized finance (DeFi) sector, marking a deliberate effort to drive both innovation and user adoption in this space. This initiative comes as the industry increasingly explores hybrid approaches that combine centralized and decentralized elements, while also addressing persistent concerns about DeFi’s security and scalability.

Despite recent obstacles, the DeFi sector continues to demonstrate resilience. SunPerp, a decentralized exchange (DEX), recently exceeded $100 million in total value locked (TVL), highlighting the popularity of platforms that merge the convenience of centralized exchanges (CEX) with the safety of on-chain asset management. SunPerp’s features—such as zero trading fees, liquidity aggregation, and interactive tools like leaderboards and trading analytics—have drawn interest from both individual and institutional participants, as noted in an

. At a recent industry conference, experts pointed out that CeFi and DeFi are moving toward integration rather than rivalry, with on-chain custody now seen as essential after the FTX collapse. While CEXs are likely to maintain their lead in the near future, DEXs are expected to gain a greater share as the underlying infrastructure improves.

Nonetheless, the industry still faces major hurdles. A recent $93 million hack at Stream Finance, a DeFi platform, exposed weaknesses in external asset management and stablecoin stability. The breach caused the platform’s

stablecoin to lose its dollar peg, leading to urgent recommendations for users to withdraw from related offerings like Midas’ mXRP vault, according to a . Although Midas reported no direct impact, the event highlighted the dangers of interconnected DeFi strategies and reinforced the importance of strong risk controls.

The adoption of artificial intelligence (AI) in DeFi and derivatives trading is quickly becoming a game-changer. AI’s capacity to analyze large volumes of data and refine trading tactics is already influencing the sector, with platforms like HTX hosting popular “AI vs. Humans” competitions where AI systems have outperformed human traders. While AI is unlikely to fully replace human decision-making, it is increasingly being used as a strategic resource, providing instant analytics and risk assessment tools. This partnership between human insight and machine accuracy is expected to shape the next wave of DeFi progress.

Starknet’s commitment of 100 million STRK is set to fuel these developments. The funding aims to back initiatives that improve scalability, security, and user experience—critical factors for broader adoption. By encouraging developers to leverage its zero-knowledge (ZK) technology,

seeks to overcome the throughput and expense challenges that have previously limited DeFi’s expansion. This strategy is in line with wider trends in the industry, such as the growth of CTV (connected TV) advertising in crypto collaborations and the advancement of on-chain governance systems.

As DeFi continues to mature, participants are weighing enthusiasm with prudence. While platforms like SunPerp showcase the transformative potential of DEXs, incidents like the Stream Finance breach underscore the necessity for thorough security reviews and open governance. The ongoing blend of CeFi and DeFi, along with AI-powered solutions, points to a future where decentralization offers a range of options tailored to different user preferences, rather than a single, absolute model.