Dubai, United Arab Emirates, February 2, 2026 - Orokai has released a research summary that reviews how non-custodial decentralized finance (DeFi) is being used today and identifies the structural factors that continue to restrict broader uptake.
The paper inspects incentive mechanisms at the protocol level, the responsibilities users assume in non-custodial models, and the potential role of aggregation layers in decreasing operational complexity while ensuring users retain custody of their assets.
Why users are looking on-chain
Orokai frames increased interest in non-custodial DeFi against a backdrop of macroeconomic uncertainty and persistent inflation, which have prompted both retail and institutional investors to search for alternatives to conventional banking products. According to the research, traditional savings vehicles and other customary instruments frequently struggle to preserve real purchasing power, encouraging exploration of on-chain models that can offer staking rewards, borrowing options, trading facilities, and tools for asset management.
The company’s internal analysis suggests that the sector is moving beyond an early experimental stage into more structured on-chain participation. Interpreting that evolution, however, requires rethinking how custody functions when the user, rather than an intermediary, controls the keys.
From intermediaries to immutable code
Orokai contrasts conventional finance, where recurring yields - such as dividends, bond coupons, or interest - typically require placing assets under the control of intermediary institutions, with non-custodial DeFi. In traditional models, banks and asset managers custody assets, execute transactions, and determine access, a structure which carries counterparty risk and operational constraints.
By contrast, non-custodial DeFi keeps assets in wallets controlled by users and relies on smart contracts to interact with protocols. As Orokai states, “The defining characteristic of this model is sovereignty.” The research adds: “Participants are not requesting access to their own funds. They interact with predefined, immutable code that executes automatically and continuously.”
Core mechanisms examined
The summary deconstructs four principal mechanisms that typically appear in non-custodial DeFi:
- Staking - Assets are committed to support proof-of-stake networks, and rewards are distributed according to rules defined by the protocol.
- Liquidity provision - Assets are supplied to decentralized exchange pools and transaction fees are algorithmically distributed among providers.
- Lending markets - Capital is supplied to borrowers via over-collateralized smart contracts, shifting credit risk mitigation from discretionary underwriting to code-enforced conditions.
- Collateral strategies - Holders use existing on-chain positions as collateral to access additional liquidity without liquidating underlying assets.
Operational friction and fragmentation
A central conclusion of the research is that operational complexity remains a dominant barrier to wider adoption. Fragmentation across different protocols, inconsistent user interfaces, and the time costs associated with assessing security, audits, and transaction economics continue to constrain participation.
Orokai highlights the scarcity of time as a practical constraint for most investors: “Time is the most limited resource for any investor,” the team notes. The research explains that spending weeks poring over protocol documentation, audit reports, and fee structures across multiple networks is not realistic for a broad set of participants, and that this complexity is a material impediment to scaling non-custodial use.
Aggregation-first approach
To address these frictions, Orokai outlines an aggregation-first approach designed to unify access to selected non-custodial protocols without assuming custody of user funds. The aggregation layers described in the research seek to reduce operational friction by standardizing interaction patterns and abstracting technical complexity, while allowing assets to remain in user-controlled wallets.
Rather than holding or managing funds, the aggregation layer functions as a standardized interface to vetted protocol opportunities, aiming to streamline decision-making and execution for users who want to remain in control of their keys.
Shift toward transparency and risk-conscious participation
The research observes a sector-wide move away from unsustainable headline yields toward greater emphasis on transparency and risk awareness. Orokai notes that on-chain systems make every transaction verifiable in public ledgers, which allows market participants to directly review activity instead of relying on intermediaries’ disclosures.
“The ongoing shift toward non-custodial and transparent on-chain systems is reshaping how yield mechanisms are designed and accessed,” the Orokai team stated in the summary.
About Orokai
Orokai describes itself as a non-custodial DeFi platform that aggregates vetted opportunities in staking, lending, and yield farming. The platform aims to simplify engagement with selected on-chain protocols while ensuring asset custody remains with users.
For more information, Orokai provides a contact point and web address: https://orokai.com and [email protected]