Uniswap, a leading decentralized finance (DeFi) platform, conducted a survey to understand the motivations and barriers of US-based retail users towards DeFi. The survey received 1,860 responses, including non-crypto, centralized finance (CeFi), and DeFi users.
Uniswap’s survey revealed that despite the bear market backdrop, nearly half of CeFi users expressed an interest in experimenting with DeFi protocols in the next 12 months. This finding is encouraging as it indicates a growing interest in DeFi among traditional finance users, who are willing to learn and explore the possibilities of on-chain activity.
However, the survey also highlighted that complexity, lack of understanding, and costs are the main barriers preventing CeFi users from using DeFi platforms for all their cryptocurrency trades. This finding underscores the importance of providing educational material, improved user experience, and support to overcome the learning curve associated with DeFi.
To address these issues, Uniswap Labs has a user-friendly interface that allows users to easily navigate the platform and execute trades with a few clicks. Uniswap Labs utilizes an Automated Market Making (AMM) system that eliminates the need for order books and allows users to easily swap tokens at a fair market price, simplifying the trading process. Uniswap Labs encourages self-custody, providing users with complete control over their assets and not relying on centralized custodians.
Uniswap Labs’ focus is on user education and support to help users build their knowledge base and confidence in DeFi. They seek to bridge the gap between CeFi and DeFi by considering the first steps as a gateway into the broader crypto ecosystem.
Transaction fees and costs were also identified as notable barriers to entry. However, as Ethereum continues to scale and layer 2 solutions see greater adoption, DeFi will become more economically accessible for price-sensitive users, according to Uniswap’s blog post.
Uniswap Labs is exploring layer 2 scaling solutions that will significantly reduce transaction fees and increase the speed of transactions. This will make DeFi more economically accessible and user-friendly for price-sensitive users.
Overall, Uniswap Labs’ survey sheds light on the motivations and barriers of US-based retail users towards DeFi. The platform aims to simplify and abstract the complexities unique to crypto without compromising on the ideals of self-custody and transparency. As the industry continues to grow, it is important to prioritize user education and support to help users build their knowledge base and grow their confidence.