Still DeFi users are few compared to the existing Ethereum addresses.
In addition to educational activities, there will be rewards and scholarships for users.
Several companies related to decentralized finance (DeFi) announced the creation of DeFi For The People
, an initiative in which they will invest more than USD 100 million. It is a project that will involve educational activities, scholarships and other strategies to familiarize more people with these protocols. The founders include companies such as Aave, Curve and Sushi, as well as Celo, a mobile financial services platform that is acting as coordinator.
According to a Celo Foundation publication on Medium
, the main goal of the project is “to make DeFi accessible to the world’s 6 billion smartphone users”. In this sense, Rene Reinsberg, co-founder of Celo, said that the goal is to reach 1 billion users in decentralized finance in five years.
Despite their exponential growth in 2021, DeFi
platforms still represent a very low percentage of Ethereum addresses, the blockchain on which most of these protocols work. This can be seen in the graph below.
Furthermore, as reported by CryptoNews, Argentina and Brazil are the Latin American countries with the most users
on these platforms. Despite their wide adoption of cryptocurrencies, other countries such as Venezuela and Colombia do not seem as interested in these protocols so far. The graph shows in green the Ethereum addresses that interacted with DeFi protocols in Q1 2021.
Source: Consensys / consensys.net.
What DeFi for the Peopleis about DeFi
founding members also include 0x, UMA, Valora, Ubeswap and Moola Market. In addition, Chainlink, The Graph, RabbitHole and Wrapped.com have partnered for educational purposes.
To that end, in addition to coordinating events for informational and educational purposes, these companies are going to collaborate with each other to attract more people to their protocols. For example, Poo
lTogether and Celo will offer rewards of up to $500,000 for one of their traditional no-loss lotteries
. These are lotteries in which the winner gets a set jackpot, but all other participants receive a refund of what they paid to participate.
Meanwhile, lending platform Aave promises incentives of USD 20 million in tokens for those who enter the platform through Celo. Similarly, Curve and Sushi are offering rewards of $14 million and $10 million, respectively.
All of these announcements seem to have generated anticipation. At least this can be inferred from the rising price of the Celo token (CELO). According to data from CoinMarketCap
, this token went from around USD 4.5 on Saturday, August 28 to exceed USD 10 this Monday, August 30, after the news of the new project was known. On his Twitter account, Celo unveiled the partnership between companies
DeFi for the new initiative. Source: Twitter.