Who is actually using DeFi
Who is actually using DeFi?
The rise of DeFi this year is one of the most discussed topics in the cryptocurrency world. Explosive behaviour of all the major DeFi projects such as Compound, Uniswap or MakerDAO has led to increasing amount of transaction and utilization of the sector. However, people have been questioning if the rise itself has brought new users into the sector or if the users that have already been in the “DeFi business” are just more active. New research of Consesys Codefi has looked into these topics and some of their findings are more than interesting.
The Q2 2020 Defi Report
The report with the subheading of “An analysis of Ethereum´s decentralized finance ecosystem in Q2 2020” was released by Codefi only few days ago, however, it is one of the most elaborate researches that have been conducted on the fields of DeFi so far. The report has concluded three main points about the DeFi sector. BTC tokenized on Ethereum is able to attract even BTC maximalists, which in the long run can pay off highly. Security is still the key aspect of the DeFi that needs to be improved upon due to 3 major security breaches of Uniswap, Lendf.me and Balancer. And last but not least, the report found that majority of the DeFi users are not new to the sector.
The crucial take on the last point suggests that eventhough the yield farming and especially the Compound project have soared and have brought incredible attention to the sector of DeFi, the values of locked Ethereum or daily active users did not necessarily mean exponential increase of the new users. On contrary, the research found out that the number of new members is increasingly low suggesting few problems that the DeFi sector might have reached.
The report has suggested that the increase in activity is mainly due to the increased activity of existing users. The rise has been mainly visible in the area of “super users.” These are the types of users who have been active and are now using two or three different DeFi protocols. Most of them usually use Uniswap, Kyber and Compound.
Attracting new users
The biggest outtake from the report however still is that the explosive rise in the decentralized finance this year has brought in minimum new users into the sector. This only means that DeFi sector is either still not attractive enough to encourage new users to join the sector or that the barriers to entry for new users are so high, when it comes to complexity of DeFi that it discourages them to join the sector.
The same was concluded by the Consensys Codefi, which stated that increasing the number of new users will not be possible unless the sector undergoes changes. The authors of the report have suggested that improving the design, user experience and education can help the DeFi sector in not only attracting new users into the sector, but also helping to grow in sustainable pace.
Fun Gram can help with acquisition of new users for DeFi sector
This is where Fun Gram is going to come in place. Fun Gram is a decentralized social finance platform which aims to establish simple and borderless financial ecology. Having this goal in mind, Fun Gram combines decentralized finance (DeFi) including lending, insurance leverage and other financial derivatives to provide financial basis for social app users infrastructure to create a secure, private and efficient global financial system.
Therefore, Fun Gram can help with the biggest problem of DeFi and that is the acquisition of new users. With safe, easy to use and efficient place for DeFi, Fun Gram will give opportunities to anyone who wants to become active member of the DeFi community to take part in it. With a sustainable product and economic models that Fun Gram plans to create, there is no doubt that Fun Gram can substantially help with the acquisition of new users for the DeFi whole sector.