DeFi Protocols Quietly Shift Focus from Consumer Apps to Enterprise Infrastructure

DeFi protocols are making a quiet pivot from building consumer-facing apps to providing backend infrastructure for tech giants. This shift, known as 'DeFi-as-a-service,' has been gaining traction since at least 2023.

Despite years of effort and millions of dollars spent on developing user-friendly DeFi apps, the industry has struggled to appeal to mainstream consumers. The main hurdle is that DeFi still requires a level of crypto literacy that most people don't possess or want to acquire.

This pivot means that protocols are now focusing on providing infrastructure for large technology companies, which brings stable recurring revenue and should theoretically support token valuations. However, becoming backend infrastructure tends to reduce a protocol's visibility and narrative appeal, making it harder to justify governance token prices.