{"id":127688,"date":"2020-12-07T03:44:48","date_gmt":"2020-12-07T00:44:48","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/a-million-down-a-billion-to-go-how-does-defi-reach-mass-adoption\/"},"modified":"2020-12-07T03:44:48","modified_gmt":"2020-12-07T00:44:48","slug":"a-million-down-a-billion-to-go-how-does-defi-reach-mass-adoption","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/a-million-down-a-billion-to-go-how-does-defi-reach-mass-adoption\/","title":{"rendered":"# A million down, a billion to go: How does DeFi reach mass adoption?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37325761778\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37325761778\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/a-million-down-a-billion-to-go-how-does-defi-reach-mass-adoption\/#%E2%80%98Speculators_to_participants\" >\u2018Speculators to participants\u2019<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/a-million-down-a-billion-to-go-how-does-defi-reach-mass-adoption\/#%E2%80%98A_different_profile_of_user\" >\u2018A different profile of user\u2019<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># A million down, a billion to go: How does DeFi reach mass adoption? <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTIvYTU5MDg2NDctMDA2MS00NTg1LThjZWMtMjc5OTM0MTliN2FkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>A report on Friday from Ethereum metrics website Dune Analytics showed that the decentralized finance (DeFi) ecosystem now counts over 1 million unique Ethereum addresses as participants \u2014 an over tenfold increase from the 91,000 addresses on Dec. 6, 2019.\u00a0<\/p>\n<p>But while the growth has been undeniable, some experts caution not to interpret the milestone as a sign of widespread adoption. In fact, in order for DeFi to truly break mainstream, many of the emerging vertical\u2019s proponents may have to rethink their communication and outreach strategies. <\/p>\n<p>The Dune Analytics\u00a0<a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/duneanalytics.com\/rchen8\/defi-users-over-time\">report<\/a>,\u00a0compiled by aggregating the total number of addresses which have ever utilized popular DeFi protocols such as Uniswap, Compound, and Aave, noted that their calculations interpret \u201cusers\u201d as \u201cunique addresses,\u201d meaning that the millionth address mark might not be as bullish as it seems at first blush. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"> ONE MILLION DEFI USERS <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/t.co\/H11HBUIrOe\">https:\/\/t.co\/H11HBUIrOe<\/a> <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/t.co\/daqRpBGfbF\">pic.twitter.com\/daqRpBGfbF<\/a><\/p>\n<p>\u2014 Richard Chen (@richardchen39) <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/richardchen39\/status\/1334987924379676673?ref_src=twsrc%5Etfw\">December 4, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Many DeFi users commonly deploy multiple addresses in order to protect their privacy while transacting on Ethereum\u2019s public network, and conflating &#8220;addresses&#8221; with &#8220;users&#8221; may lead analysts to some dubious figures.\u00a0<\/p>\n<p>Brian Flynn, the co-founder of a startup that helps to incentivize participation in DeFi, Rabbithole, suggests that the actual number of participants is far lower. <\/p>\n<p>\u201cThe reality is that the number of unique users is only 10-15% of that. That&#8217;s the real metric that matters,\u201d Flynn told Cointelegraph. <\/p>\n<h3><span class=\"ez-toc-section\" id=\"%E2%80%98Speculators_to_participants\"><\/span>\u2018Speculators to participants\u2019<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>So how will DeFi truly reach a million users and beyond? Flynn explained that the first step in attracting a larger number of unique users will be a \u201ckiller <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lication focused around speculation\u201d similar to CeFi trading platform Robinhood, which enjoyed a remarkable boom in participation during the Covid lockdowns.\u00a0<\/p>\n<p>Over the long term, however, finding ways to incentivize users to participate in governance and infrastructure-layer elements of DeFi is what will lead to sustainable success.\u00a0<\/p>\n<p>\u201cMany users understand how to trade tokens on Uniswap or an aggregator, but don\u2019t understand how these protocols work under the hood,\u201d he said. \u201cFor example, of all the addresses who have traded on Uniswap, only a small fraction have ever supplied liquidity. For all of those who supplied assets on Compound to earn interest, only a small fraction borrowed to take out a loan.\u201d<\/p>\n<blockquote><p>\u201cWe need users going further down the rabbit hole and moving from speculators to participants in an open economy. That\u2019s how we drive real adoption.\u201d<\/p><\/blockquote>\n<p>To this end, Flynn revealed that Rabbithole has \u201cseveral\u201d campaigns planned with leading DeFi platforms to incentivize richer protocol participation from users in exchange for governance tokens.\u00a0<\/p>\n<p>\u201cThis change won\u2019t happen overnight, but the most important thing we can do is educate with real hands-on participation in these networks,\u201d he added.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"%E2%80%98A_different_profile_of_user\"><\/span>\u2018A different profile of user\u2019<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Encouraging users to become more active actors in the DeFi landscape is one promising step towards adoption, but another may be attracting different kinds of users altogether.\u00a0<\/p>\n<p>Patrick Rawson, a co-founder at DAO engineering and blockchain experimentation outfit Curve Labs, says that the current user experience in DeFi is tailored to a very specific demographic. <\/p>\n<p>\u201cThe people who are using these mechanisms, they skew male, they skew younger, they skew wanting to earn profit [&#8230;], they skew towards being technically savvy,\u201d said Rawson. \u201cThis profile of user is going to demand whatever makes them the most profit.\u201d<\/p>\n<p>If DeFi truly wishes to \u201cbank the unbanked\u201d and reach \u201cthe last mile\u201d of users, they might have to contemplate new outreach strategies, argues Rawson \u2014 one which better empowers users to seek their desired outcomes. <\/p>\n<blockquote><p>\u201cLet\u2019s look at a different profile of user for a second. Older, comes from sub-Saharan Africa, female, has a family, not technically savvy. Is this user going to want profits at the expense of everything else? No \u2014 she\u2019s probably more interested in the environment around her, she\u2019s interested in her family being healthy and well. [&#8230;] She wants a DeFi that benefits her local community, rather than a DeFi that optimizes profit at all costs.\u201d\u00a0<\/p><\/blockquote>\n<p>Rawson says that in order to accomplish this shift, DeFi will have to tailor itself to \u201clocalized institutional structures that reflect local values.\u201d One example he offered is the <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Sarafu-Credit\">Sarafu credit<\/a>, a \u201ccommunity currency\u201d experiment in Kenya that formerly partnered with Bancor.\u00a0<\/p>\n<p>Flynn agrees that focusing on profits above all else might be a restrictive way to preach the gospel of DeFi. The manner in which current participants in the ecosystem discuss DeFi with friends and family will also play an important role in building towards the future:<\/p>\n<blockquote><p>\u201cWe need to stop focusing on price, and more about how cryptonetworks and decentralization is a new way of building organizations.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/a-million-down-a-billion-to-go-how-does-defi-reach-mass-adoption\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# A million down, a billion to go: How does DeFi reach mass adoption? &#8221; A report on Friday from Ethereum metrics website Dune Analytics showed that the decentralized finance (DeFi) ecosystem now counts over 1 million unique Ethereum addresses as participants \u2014 an over tenfold increase from the 91,000 addresses on Dec. 6, 2019.\u00a0&#8230;<\/p>\n","protected":false},"author":1,"featured_media":127689,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/a5908647-0061-4585-8cec-27993419b7ad.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,75186,74868,74891,72414],"class_list":["post-127688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-dao","tag-defi","tag-ethereum","tag-kenya"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/127688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=127688"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/127688\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/127689"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=127688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=127688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=127688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}