Decentralized finance is still too complex for ordinary investors to use, Uniswap Labs found.
Ordinary investors are still having difficulty using decentralized finance, hindering the mass adoption of the technology. To such opinion came analysts from Uniswap Labs, who polled 1,860 respondents.
According to published data, the key obstacle to the use of DeFi is the lag of cryptocurrency quotes from indicators on centralized platforms. In second place, users indicated difficulties around understanding how decentralized finance generally works. In third place, respondents indicated the difficulty of using products in the decentralized finance market. Also, the respondents added the difficulty in managing private keys to the list of shortcomings.
Uniswap Labs suggested that blockchain developers should devote more time to simplifying user interfaces (for example, simplify switching between networks, managing private keys, and so on). To make DeFi easier, the interviewees also advised creating “educational resources” on how to use such products, as well as “expanding user support.”
It is noteworthy that the difficulties with the use of DeFi have persisted for more than a year. For example, back in 2021, users noted that understanding the interface of Uniswap V3 required at least a “degree”. Also, negative comments related to commissions and technical problems of the site.
The difficulties around DeFi were most evident when the staking feature appeared on the Ethereum network. Instead of staking ETH via protocols, users have mostly used centralized cryptocurrency exchanges. However, when the option to withdraw from staking appeared on the network, users rushed to redirect cryptocurrency to DeFi. According to Nansen, the Lido DeFi protocol became the leader in staking deposits, which received over 412,000 ETH. Stakefish came in second with 183,000 ETH, while Kiln.fi closed the top three with 164,000 ETH.
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