Now the competitiion among DeFi projects is so high that the main questistion is how useful will be this project for people.
The most important is to create demand in the project and its products.
The most important for all cryptocurrency projects is to be very useful for the community.
When project is useful it has a big community of users.
what happens when we have many similar useful projects? XFI is one of the pioneering Defi project and it is struggling now. The high number of project with similar idea is killing altcoins, Although some are adding more used cases as form of development, I strongly believe their is still room for growth in cryptocurrency that will encourage larger adoption especially in finance.
When we have many similar useful projects there is a big competition between them.
Investors have a big choice of different projects and they prefer to use the best of them, that are more profitable and comfortable for them