Factors Affecting Cognition in Defi: Decentralized Finance

Abstract

This research aims to study factors affecting cognition in Decentralized finance: Defi system means the use of financial transactions in the part of P2P Lending, Liquidity Mining, and Yield Farming. Respondents had knowledge or experience in economics, finance, investment, both investing in money markets, capital markets, including those who invest in Cryptocurrency from the age of 15 years. A total of 1,007 people were sampled using online questionnaires and convenience sampling selection as the method of collecting data. The results showed that when the gender changed by 1 unit, knowledge of Defi increases by 18.5%, or 1.185 times more than careers change. The cognitive decline in Defi was 4.2%, and when the income was changed by 1 unit, the cognition in Defi was increased by 4% or 1.04 times. Understanding in Defi increased by 37.7% or 1.377 times and when Instagram IG changed by 1 unit. This resulted in a 43.8% decrease in the knowledge of Defi. The forecast was 82.4% accurate, based on the results of this research; it is suggested that users have enough knowledge before starting their transactions. Regulators who manage the Defi system safely under the supervision of the Stock Exchange Commission, the platform must be reviewed, including educating those who want to use it so that the general public has more knowledge, until they are able to use the Defi system safely.