

Why DeFi Is Still Crypto's Only Real Product Market-Fit with Kenny Li
May 31, 2025
Kenny Li, who works at Manta, dives into the evolving landscape of DeFi and blockchain sustainability. He argues that the era of 'build it and they will come' is gone; projects now need real users and revenue to survive. Kenny discusses how integrated business models, along with insights from traditional finance, can drive mass adoption. He also highlights the diminishing relevance of Layer 2 solutions and why starting with centralized products may ease on-chain entry. Finally, he emphasizes a Robin Hood mindset for future projects.
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Blockchain Business Model Evolution
- The blockchain business model has shifted from eliminating middlemen to becoming the middlemen via transaction fees.
- Proving product-market fit with killer apps and users is critical for blockchain's long-term viability.
DeFi Is Crypto's Core Use Case
- DeFi remains crypto's core product-market fit as all successful crypto users are financially incentivized.
- Most social and gaming experiments in crypto ultimately revert to a DeFi product or financial incentive model.
Start Centralized, Add Blockchain Later
- Start with centralized applications to build good user experiences and revenue.
- Then gradually add optional blockchain features to ease user adoption and avoid forcing wallets.