Building on the previous post, I’m addressing these open-ended questions:
Note: As with the previous post, I downloaded the data at n = 181 responses. As of this writing there are 203 responses, so these results aren’t comprehensive, but there’s enough to begin seeing patterns.
Here are the open-ended questions I focus on for this post:
- What has been painful about using DeFi apps or what has or is an obstacle in your way to using a DeFi app?
- Tell us about one positive or unexpected outcome you had from using a DeFi app?
- What DeFi app are you most interested in using?
- What is your DeFi endgame?
What has been painful about using DeFi apps or what has or is an obstacle in your way to using a DeFi app?
Pain Points (descending order)
- High Gas Fees / managing gas: (65)
- Confusing, intimidating UX / UI: (26)
- Complexity / Complicated txn / Learning curve / Education/ Difficult Jargon: (24)
- Fear, Uncertainty & Risk (exploits, security, liquidation, smart contract risk, rug, slippage, token mechanics ): (20)
- Clearer explanations for DeFi products / need better docs: (17)
- Fear impermanent loss (IL) / Calculating Impermanent loss: (13)
- Tracking Yield / understanding APY, profitability: (5)
- Trial & error expensive (need sandbox): (3)
- Setting up metamask / using with ledger: (3)
- Distinguish legit vs phishing sites: (2)
- Txn wait time: (2)
- How Ethereum Txns work: (2)
Single mention pain points:
- DeFi apps buggy:
- Depositing funds to DeFi apps:
- Price volatility:
- Accessing less known tokens:
- Confirming correct address:
- Forgetting keys:
- Gauging project’s legitimacy:
- Keeping track of dApps
- L2 sucks:
- Tax implications:
- Wallet compatibility
Tell us about one positive or unexpected outcome you had from using a DeFi app?
Positive / Unexpected Outcomes (descending order):
- Airdrop (i.e., Uniswap) / access lesser known tokens: 52
- Yield Farming / Earn Yields: 17
- Learning about projects / DeFi / Finance / more DeFi apps / Understanding terms / jargon: 13
- Getting involved in Projects /Excited for DeFi / part of DeFi community: 13
- Passive income / Possibilities and future returns & Financial control: 12
- Ease of setting up account / use: 11
- Gas fees / cost of txns: 4
- Ease of single signing in with wallet: 4
- DEXs are good / No KYC: 3
- Stablecoin / interest rates: 2
- Learning about impermanent loss: 2
- Learning about liquidation: 2
- Haven’t lost money yet / it didn’t break: 2
- Discover Bankless: 2
**Single mentions positive / unexpected Outcomes **:
- Forgetting LP positions (finding by chance later)
- Quick swaps data visualization
- Learn about specific projects (i.e., Pancakeswap fun, Sushiswap user friendly, Uniswap easy, Alchemic, Zapper & BAL, Loopring zero fees on L2, Ampleforth, Yearn > figuring out strategies solo)
- Free NFTs
- 0% APY
- Using Polygon to get a feel for DeFi:
- Lido easy to use
- Opportunity cost ‘divergent loss’
- Good product history
- Got returned ETH after sent to wrong address
- Bought dip
What DeFi app are you most interested in using?
DeFi Apps Interested in Using (descending order):
- alchemix / alcx 37
- uni / uniswap / uniswap(v3) 37
- aave 31
- sushi / sushiswap 11
- zapper / zapperfi 9
- polygon 8
- curve 6
- L2 (5)
- yearn 5
- dydx 5
- liquity 5
- aleth 4
- zerion 4
- staking 4
- pancake 3
- alpha homora 2
- quickswap 2
- arbitrum 2
- compound 2
- sovryn 2
- argent 2
- 1inch 2
- matcha 1
- aztec 1
- rocket / rocketpool 2
- tornado 1
- thorchain 1
- loopring 1
- balancer 1
- link 1
- maker 1
- cream 1
- solana 1
What is your DeFi endgame?
Themes (descending order):
- Passive income staking / earn yields / APY: 48
- Bankless / get rid of savings acct / control finances from decentralized protocols: 30
- Financial Independence / retire early / self-sustaining / self-sovereignty: 24
- Increase crypto / portfolio holdings / accumulate ETH/BTC: (20)
- Work in crypto / a DAO / Participate in governance: 7
- Become DeFi native / detach TradFi / accept payment thru DeFi / off fiat: 7
- No end game: 6
- Never sell / hodl / borrow againt my crypto for liquidity: 5
- Lambo / Buy house / car / pay student loans: 3
- Help family/friends invest: 3
- Build dApps / something community needs: 3
- Fair wealt distribution: 2
- Funding / Investing in DAOs / DeFi companies: 2
- Hedge inflation: 2
- Staking on Rocket Pool: 2
End game (single mentions):
- Ownership virtual games
- Prevent impermanent loss
- Be part of the future
- Matic platform
- Revolving line of credit increasing
- Quit job
- Buy house with no mortgage
- Generational wealth
- Zapper
- DeFi on wearables
NOTES
Analysis Summary
- What is your age group? [Google Form]
- What country do you reside in? [Google Form]
- When did you first acquire a crypto currency (bitcoin, ethereum, etc.)? [Google Form]
- What wallet(s) are you using now? Check as many as applicable. Check none if you don’t have one. [Google Form]
- If you have used a wallet, what was your first wallet and why did you choose that one? [Text Analytics]
- What has been painful about using wallets or what has been or is an obstacle in your way to using a wallet? [Manual Coding Qualitative Themes]
- When did you first use a DeFi app (AAVE, Uniswap, etc.)? [Google Form]
- If you have used a DeFi app, what was your first app and why did you choose that one? [Text Analytics]
- What has been painful about using DeFi apps or what has or is an obstacle in your way to using a DeFi app? [Manual Coding Qualitative Themes]
- Tell us about one positive or unexpected outcome you had from using a DeFi app? [Manual Coding Qualitative Themes]
- What DeFi app are you most interested in using? [Text Analytics & Manual Coding Qualitative Themes]
- What is your DeFi endgame? [Manual Coding Qualitative Themes]