Why are there few DeFi products on EOS (Reasons for eos)

Why are there few DeFi products on EOS? According to Gravity Observations, currently there is only one project called MakerDAO in the DApps on EOS. On Ethereum, there are decentralized exchanges (DEX) running, while other DApps on EOS do not have such functionality.

Statistics show that as of June 17th, there are lending protocols worth nearly $100 million (including Uniswap and Sushi) on EOS. However, from the perspective of EOS ecosystem, although these applications are already very mature, they do not really serve users. If in the past year there were hundreds of DApps that showed the development prospects of EOS DeFi, then this year should be considered a good start. So why are there few DeFi products on EOS?

1. Lock-up Volume

The two largest DeFi products on EOS are Compound and Aave, both of which are built on Ethereum and are more advanced than EOS. This makes them almost incomparable with EOS: First, locked assets exceed $1 million; Second, there are more users providing liquidity; Third, there are relatively few wallets that support smart contracts; Fourth, low transaction fees. EOS can be used as a whole for transaction settlement and receiving. Therefore, for most people, participating in EOS DeFi DApps requires a considerable cost. Because DeFi projects on EOS do not always make money, but attract more users through various incentive mechanisms.

Reasons for eos

Recently, problems have occurred in the EOS mainnet. The reasons for eos are: EOS developers are unwilling to shorten the block production time from 3 seconds to 5 minutes (because in the consensus mechanism, the execution speed of each new block needs to be much faster), which prevents effective interaction between nodes, resulting in resource exhaustion and CPU usage problems. In addition, the EOS network is forked into multiple super-nodes due to contract code vulnerabilities, which affects overall network stability, user experience, performance, and other factors.