Why do I have to pay more fees to swap tokens on decentralised exchanges making them unusable, and how exactly is DeFi decentralised?
Wait for ETH 2.0. It's a really difficult problem to solve. In the meantime though, use Polygon (or other side chains). Swap tokens for a cent or two.
> how exactly is DeFi decentralised
Take a protocol like app.uniswap.org or pooltogether.com. If you have an internet connection, no one can stop you from using these protocols (and many other protocols). No arbitrary rules imposed by governments or companies. Your funds are your funds, there are no arbiters (just tens of thousands of Ethereum nodes which are responsible for settling transactions).
> What is the process of getting your money back from a hacked DeFi project?
Use protocols that have been around for a long time and have hundreds of millions, billions, or even tens of billions of dollars locked in. That decreases chances of you losing funds. But it is a problem, I agree, hopefully somehow we will make it better.
So I still have to wait at least 2023 (2025 or 2026 for a realistic possibility of merchant adoption) for ETH 2.0 to be used?
I don't think merchants would want to wait for something that is not complete and unregulated.
You do realise that ETH 2.0 has nothing to do with lowering fees? So all the DeFi apps using it will still be unusable anyway.
> If you have an internet connection, no one can stop you from using these protocols (and many other protocols)...(just tens of thousands of Ethereum nodes which are responsible for settling transactions).
Aren't most of these Ethereum nodes and DeFi exchanges on AWS like dydx? It went down a few months ago no? [0]
That doesn't sound decentralised to me.
> Use protocols that have been around for a long time...That decreases chances of you losing funds. But it is a problem
So I can't get my money back then? I see DeFi hacks everyday and not getting my money back doesn't help either.
Makes robbing a bank less attractive for criminals and instead target DeFi projects.
[0] https://twitter.com/dydxprotocol/status/1468293558360805381
The decentralized part of DeFi is the smart contracts. If you can interact with the contracts without any centralized help, then how exactly is it centralized in your opinion?
