Thread by @hotendies, One of the biggest threats for DeFi on ETH has always been [...]

hotendies

One of the biggest threats for DeFi on ETH has always been a toptier fintech centralized company copypasting the code of the most popular DeFi projects and offering it to their users with x10 better UX and negligible fees.

This risk was underestimated since banks and fintech companies are slow af. But CZ did the job, BSC is now beating ETH on almost every metric. The growth just doesn't stop and it's exponential.

Imo eth maxis who see BSC as a testnet/complementary/non-threath to ETH are coping hard. The ones who see BSC as a threat are right. BSC is acquiring all the present and future users that would have gone to ETH if fees were cheaper.

If you expect ETH and DeFi to continue growing, you have to ask yourself who are the future untapped users and what their size is relative to the present.

The users who care about decentralization and are OK paying $100 per tx are already deep in DeFi and crypto. They are 1% of all future DeFi users.

The users who don't care about decentralization and are currently priced out of ETH are 99% of all future DeFi users.

So the argument of "see how much demand this copy of eth has, this is bullish for eth" is just plain wrong.

Users are sticky to the chain they started with, for the majority of users that started with BSC it's likely they won't ever interact with ETH.

"But L2s will solve everything on ETH" is another cope I've seen. But that's for another thread.

Just name dropping some unadressed big drawbacks:
Fragmentation of liquidity, loss of money lego property / lack of composability, another layer of technical complexity for devs...

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