Uniswap Survey Uncovers DeFi Barriers, but Users Keen to Experiment

Uniswap Labs’ survey on CeFi users’ perception of DeFi shows opportunities, but also key barriers to overcome.

Unicorn jumping through waves in a starry night, sparkling with DeFi.
Created by Kornelija Poderskytė from DailyCoin
  • Centralized Exchange (CEX) users show a strong inclination towards DeFi. 
  • Uniswap Labs’ survey paves the way for understanding the future of DeFi adoption.
  • Survey still shows major barriers to adoption. 

As centralized exchanges face increased regulatory pressure, users are looking to Decentralized Finance (DeFi) as an alternative. A recent survey by Uniswap Labs uncovered a strong interest in DeFi, despite perceived barriers to entry. 

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The study, published on Tuesday, May 16, found that many users of more centralized services are open to experimenting with DeFi. However, better educational material, improved user experience (UX), and support would help them overcome the learning curve. 

CEX Users Eager to Learn and Explore DeFi

Despite the ongoing bear market, almost half of the surveyed CEX users expressed their willingness to experiment with DeFi protocols. 

Percentage of current DeFI users who can use Cefi.
Source: Uniswap.

Fewer users indicated other reasons that could motivate them to engage with DeFi. For example, about 30% of CEX users said they would be willing to use DeFi if offered lower fees. 

Values play a role in DeFi adoption as well. Specifically, some 15% of CEX users indicated that their values would make them more likely to use DeFi. At the same time, about 25% of DeFi users said the same. 

Lack of Understanding Is the Biggest DeFi Barrier for CEX Users

The survey also asked users about the perceived barriers to DeFi. Interestingly, most CEX users indicated that a lack fo understanding is the biggest barrier for them.  In particular, 42% of CEX users indicated a lack of understanding, so they don’t use DeFi for all their trades. In contrast, only 32% indicated fees as the reason. 

Uniswap survey responses.
Source: Uniswap.

For DeFi users, the situation is reversed. 45% indicated that lower fees sometimes draw them to centralized exchanges. At the same time, over 34% also said that a lack of understanding keeps them from exclusively relying on DeFi. 

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Uniswap Labs concludes that there is significant interest among centralized exchange users to experiment with DeFi, despite the perceived complexity and costs involved. They believe focusing on user experience, educational resources, and improved support will play a vital role in making this transition smoother. 

The survey featured four categories: non-crypto users, CEX users, DeFi users, and hybrid users. It featured 1860 participants, reflecting the US demographics.  

On the Flipside

  • Uniswap study mostly focused on US retail users. While it is a big market, it may not accurately reflect DeFi trends globally. 
  • While nearly half of CeFi users are interested in experimenting with DeFi, this still means that many users remain hesitant. Moreover, results indicate that many users don’t see the benefits of DeFi.  

Why This Matters

For DeFi platforms and developers, these insights can guide the development of more user-friendly platforms and strategies for boosting adoption.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.