The post How to Build Durable DeFi appeared on BitcoinEthereumNews.com.

DeFi is getting a boost from the emergence of a host of new blockchains such as BeraChain, TON, Plume, Sonic and many others. Each new chain brings with it a flood of incentives, enticing users with yields that echo the early days of yield farming in 2021. But is any of this sustainable? As every new blockchain fights to build momentum, they inevitably confront the same dilemma: how to build sustainable ecosystems that survive beyond the end of their incentive programs. Incentives remain one of crypto’s most powerful bootstrapping tools — an elegant solution to the cold-start problem of attracting users and liquidity. Yet, incentives are just a starting point. The ultimate goal is to build self-sustaining economic activity around DeFi protocols. While the broader DeFi market has evolved considerably, the foundational approach to incentive-driven growth has changed little. For DeFi to thrive in this new phase, these strategies must be adapted to reflect the realities of today’s capital dynamics. Despite the obvious need, most incentive programs end up failing or producing underwhelming results. The composition of the current DeFi market is very different from 2021 where it was relatively simple to run an incentive program. The market has changed and there are some key aspects to consider when thinking about capital formation in DeFi. More Blockchains Than Relevant Protocols In traditional software ecosystems, platforms (layer-1s) typically give rise to a larger, diverse set of applications (layer-2s and beyond). But in today’s DeFi landscape, this dynamic is flipped. Dozens of new blockchains — including Movement, Berachain, Sei, Monad (upcoming), and more — have launched or are preparing to. And yet, the number of DeFi protocols that have achieved real traction remains limited to a few standout names like Ether.fi, Kamino, and Pendle. The result? A fragmented landscape where blockchains scramble…

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Filed under: News - @ April 23, 2025 2:26 am