Why are people still using DeFi on Eth?

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Quote from: mindrust on October 16, 2021, 06:21:33 AM

It is because ETH is the original Coké while the others are just generic cola. This is like asking "Why would anybody live in Monaco!! It is so damn expensive!!" Well... People live in Monaco because 1- They can afford it. 2- It is damn Monaco.

If you can't pay the price for the privilege of using the ETH network, you can then always use solana, neo or whatever crap is out there nowadays. Not everybody has to live in Monaco in the end. Some people have to live in Pakistan.

That's certainly true, mate. You can't beat the original project no matter how hard you try. Other smart contract platforms may be faster and cheaper to use than Ethereum, but they're extremely vulnerable to external attacks. That's because alternative smart contract platforms often prioritize scalability on top of decentralization. For this and many other reasons, people still use "De-Fi" on ETH even if they have to wait longer or pay higher fees. There are many popular dApps and tokens available exclusively on Ethereum, so there's that. Until developers start making quality dApps on competing blockchains, ETH will remain as the "King of De-Fi" for a long time. Just my opinion

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Quote from: cryptoknows on September 13, 2021, 06:16:04 AM

What do you think about DeFi on ethereum at the end of 2021? It doesn't seem to you that this is an absolutely bottomless pit living your money on transactions (unless you are a millionaire, of course)
Heard about DeFi on Solana or Near? When will such blockchains completely replace the losing Ethereum Network?

You mean replacing Ethereum network by the Defi? As far as I know, Ethereum network was the origin by this thing,
Though, defi games nowadays or recently became trending but it doesn't mean that ETH network will be left behind or
replace by someone else, of course not!

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Quote from: WeedGoW on October 14, 2021, 01:38:02 PM

Because they're slow to change. Yes even in crypto you think everyone have to be so fast to adapt for a new thing. But no, things that have already been used for long or everyone already familiar with it will stay no matter what.

It is very natural and very common to happen because everyone who is used to the old thing and it is still very safe to use, then they will generally continue to use it even though a new option has been born to make it easier for them in every job.

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Quote from: cryptoknows on September 13, 2021, 06:16:04 AM

What do you think about DeFi on ethereum at the end of 2021? It doesn't seem to you that this is an absolutely bottomless pit living your money on transactions (unless you are a millionaire, of course)
Heard about DeFi on Solana or Near? When will such blockchains completely replace the losing Ethereum Network?

this is what i thought, why are people still using this network. not just defi, but all Dapps on the current ethereum network are like flaws. just imagine just to transfer tokens we need a fee of more than 10 $. and that's a surprisingly large number when compared to its closest competitor, the binance smart chain. but strangely everyone still hopes ethereum can solve this problem as soon as possible. but in fact there is no solution they can provide until now.

mindrust

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It is because ETH is the original Coké while the others are just generic cola. This is like asking "Why would anybody live in Monaco!! It is so damn expensive!!" Well... People live in Monaco because 1- They can afford it. 2- It is damn Monaco.

If you can't pay the price for the privilege of using the ETH network, you can then always use solana, neo or whatever crap is out there nowadays. Not everybody has to live in Monaco in the end. Some people have to live in Pakistan.

WeedGoW

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Because they're slow to change. Yes even in crypto you think everyone have to be so fast to adapt for a new thing. But no, things that have already been used for long or everyone already familiar with it will stay no matter what.

Cadaver20

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I think Solana and Near network will never be able to replace ETH network. There are many better networks than this. However, using BSC and Polygon network, DeFi can be used at a much lower transaction fee.

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Quote from: cryptoknows on September 13, 2021, 06:16:04 AM

What do you think about DeFi on ethereum at the end of 2021? It doesn't seem to you that this is an absolutely bottomless pit living your money on transactions (unless you are a millionaire, of course)
Heard about DeFi on Solana or Near? When will such blockchains completely replace the losing Ethereum Network?

Ethereum is a very updated network. And it is continuously updating itself. The problem is the gas fee for small transaction. Ethereum has the solution and it is developing ethereum v2.0. Now it is time to wait for the release.

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Quote from: cryptoknows on September 13, 2021, 06:16:04 AM

What do you think about DeFi on ethereum at the end of 2021? It doesn't seem to you that this is an absolutely bottomless pit living your money on transactions (unless you are a millionaire, of course)
Heard about DeFi on Solana or Near? When will such blockchains completely replace the losing Ethereum Network?

DeFi on ETH is a lost cause for me since you must have seen it, the fee and transaction time eat every new project out. It was also a good reason why a coin like Solana has such momentum to come to the top altcoin in CMC right now if the DeFi on Solana is done right. But the prestige of ETH still makes some stubborn people or investors refuse to switch to the new platform.

Abiky

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Quote from: mu_enrico on September 30, 2021, 09:55:04 AM

- Many people own ETH
- Many people trust ETH
- Liquidity/locked value

There are many cheaper ETH alternatives like BSC and Polygon, but their total value locked (TVL) is nowhere near TVL on ETH. Hence, when people trade $100k suddenly a $100 fee is no longer a big deal.

We can say that most people trust ETH because it's been tried-and-tested over the years. Not like Solana, Binance Chain or other new smart contract platforms with vulnerabilities that are yet to be discovered. A while ago, the Solana network was disrupted, putting people's funds at risk. It's not about low fees or fast confirmation times, but rather security, reliability, and censorship-resistance. ETH still has the most liquidity on the market, so there's that. Unless a strong competitor with a focus on decentralization comes out, ETH will remain as the "King of De-Fi" for a long, long time. Just my opinion

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Quote from: terciduk123 on October 10, 2021, 11:00:03 PM

When viewed from the transaction fee, the transaction fees on the Ethereum network are very high when compared to some other networks, however, the high transaction fees don't prevent users from making transactions on Ethereum.
Maybe some of the reasons are because until now the Ethereum Blockchain is the best for developers, as if they can implement their ideas through Ethereum, besides that Ethereum also has a very strong ecosystem, as well as its supporters and community.

you are right, ethereum has a strong commodity and market. although more are now cheaper blockchain ecosystems, many of them are adopting the system from ethereum development. that means ethereum is still used even though it is expensive.
and for trading it is not the reason the fees are expensive, I think if the ones traded are assets with a large nominal value. indeed for new tokens that have a small value must wait for the cost to become cheaper. but the ecosystem built on the ethereum blockchain still has strong adoption.

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When viewed from the transaction fee, the transaction fees on the Ethereum network are very high when compared to some other networks, however, the high transaction fees don't prevent users from making transactions on Ethereum.
Maybe some of the reasons are because until now the Ethereum Blockchain is the best for developers, as if they can implement their ideas through Ethereum, besides that Ethereum also has a very strong ecosystem, as well as its supporters and community.

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Quote from: Naficopa on October 10, 2021, 04:51:06 PM

Quote from: cryptoknows on September 13, 2021, 06:16:04 AM

What do you think about DeFi on ethereum at the end of 2021? It doesn't seem to you that this is an absolutely bottomless pit living your money on transactions (unless you are a millionaire, of course)
Heard about DeFi on Solana or Near? When will such blockchains completely replace the losing Ethereum Network?

In my opinion, DeFi's popularity will not last very long. I think in 2022 people will start to forget about DeFi and there will be something new on the market.
As for the other networks, I think they will have a very difficult time entering the market after Ethereum 2.0 is launched.

I am afraid, I can't agree with you. It can be rightly if we are talking about really useless like meme coins. They live only because of hype and don't have any real use cases, so they will die as soon as hype is over. But defi-projects cary real utility, they solve different problems. You can lend money, borrow them, earn, exchange tokens etc, so defi-projects will live because people will continue using them even without hype.

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Quote from: mu_enrico on September 30, 2021, 09:55:04 AM

- Many people own ETH
- Many people trust ETH
- Liquidity/locked value

There are many cheaper ETH alternatives like BSC and Polygon, but their total value locked (TVL) is nowhere near TVL on ETH. Hence, when people trade $100k suddenly a $100 fee is no longer a big deal.

if for large transactions, the eth fee is not a problem, in contrast to those who will transfer in small amounts, it will look like a large amount of eth is used for fees. we don't know whether the defi trend will continue into next year, of course we have to analyze to determine the current and future trends to stay ready for market conditions

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There are two l2s on uniswap and still v2 and v3 carries the biggest liquidity with the l2 just managing very little I think the issue here is just a matter of what people tend to choose and most eth users can afford 1k plus or more in their transaction that will probably make them more than they are holding especially if they are minting nfts So basically a 50-80x is more than enough to cover gas fees and nice dinner

Naficopa

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Quote from: cryptoknows on September 13, 2021, 06:16:04 AM

What do you think about DeFi on ethereum at the end of 2021? It doesn't seem to you that this is an absolutely bottomless pit living your money on transactions (unless you are a millionaire, of course)
Heard about DeFi on Solana or Near? When will such blockchains completely replace the losing Ethereum Network?

In my opinion, DeFi's popularity will not last very long. I think in 2022 people will start to forget about DeFi and there will be something new on the market.
As for the other networks, I think they will have a very difficult time entering the market after Ethereum 2.0 is launched.

mu_enrico

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- Many people own ETH
- Many people trust ETH
- Liquidity/locked value

There are many cheaper ETH alternatives like BSC and Polygon, but their total value locked (TVL) is nowhere near TVL on ETH. Hence, when people trade $100k suddenly a $100 fee is no longer a big deal.

Abiky

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Quote from: nelson4lov on September 22, 2021, 09:06:03 PM

First off, it's worth noting that Ethereum does have the first mover advantage for DeFi and that's in fact, the real reason why people still prefer it to other innovative opportunities (along with the fact that it's battle tested and secure ^). But these doesn't mean we should completely ignore other interesting alternatives that benefit people even more. For instance:

- NEAR protocol has a growing Defi economy that is spearheading by Ref Finance ( core AMM, swao, farm with awesome rewards!, others, etc) amongst others and that's not even the best part. Rather than compete against Ethereum, they've a solution that builds upon the current struggle of ETH network and makes it better for the ETH community thanks to Aurora - L2 solution on ethereum that uses NEAR under the hood to make transactions super cheap, affordable even for the average user and lightening fast sub 1 second finality.

The goal of defi shouldn't be about giving rewards to miners for fees when there's also impermanent loss to watch out for.

That's precisely the reason why most people still use "De-Fi" on ETH. This is good because it strengthens the ETH ecosystem. But it's also bad because it increases network load. Fortunately, there are solutions to tackle the high gas fees and slow confirmation times on the Ethereum blockchain.

Of course, we cannot ignore alternative smart contract platforms like Binance Chain and Solana. They may lack decentralization and censorship-resistance, but they're extremely convenient for "De-Fi" due to their high transaction capacity and cost-efficiency. You can use "De-Fi" on the aforementioned platforms for small amounts of crypto, while using ETH for larger amounts. That way you can minimize risks of loss as much as possible. Ultimately, "De-Fi" is all about bringing banking to the unbanked. As long as it fulfills its purpose, nothing else matters. Just my opinion

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Quote from: cryptoknows on September 13, 2021, 06:16:04 AM

What do you think about DeFi on ethereum at the end of 2021? It doesn't seem to you that this is an absolutely bottomless pit living your money on transactions (unless you are a millionaire, of course)
Heard about DeFi on Solana or Near? When will such blockchains completely replace the losing Ethereum Network?

There are so many weaknesses that DeFi currently has, these conditions have not allowed us to make transactions to support the money we have, especially if we don't have a lot of money and are able to keep up with the existing billionaires, I don't think they will ever replace blockchain like ethereum, because DeFi has other targets from the results of the development they are doing at this time, but overall, we don't feel it is profitable to use its services.

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Quote from: nelson4lov on September 22, 2021, 09:06:03 PM

Quote from: X-ray on September 21, 2021, 06:26:35 AM

Defi on ethereum will always still booming. So many people are still locking their assets on DEFI ethereum. It will still remain the same and i guess the TVL might be increased even higher than before.

First off, it's worth noting that Ethereum does have the first mover advantage for DeFi and that's in fact, the real reason why people still prefer it to other innovative opportunities (along with the fact that it's battle tested and secure ^). But these doesn't mean we should completely ignore other interesting alternatives that benefit people even more. For instance:

- NEAR protocol has a growing Defi economy that is spearheading by Ref Finance ( core AMM, swao, farm with awesome rewards!, others, etc) amongst others and that's not even the best part. Rather than compete against Ethereum, they've a solution that builds upon the current struggle of ETH network and makes it better for the ETH community thanks to Aurora - L2 solution on ethereum that uses NEAR under the hood to make transactions super cheap, affordable even for the average user and lightening fast sub 1 second finality.

The goal of defi shouldn't be about giving rewards to miners for fees when there's also impermanent loss to watch out for.

Agree, if you are using DeFi on Ethereum you will be throwing away hundreds of dollars, and lost profit, in gas fees. Move to SpookySwap on Fantom or Ref Finance on NEAR for high APY, fast transactions, and low gas fees. That's what I'm doing anyway, dyor.

Topic: Why are people still using DeFi on Eth? (Read 458 times)