Tiger Research: DeFi Apps Could Be the Next Execution Layer, but User Retention Remains a Hurdle

A new report from Asian Web3 research and consulting firm Tiger Research suggests that decentralized finance (DeFi) applications are evolving into a new kind of execution layer for digital assets, potentially bridging the gap between complex on-chain protocols and mainstream retail users. However, the report, titled ‘DeFi App: Between Robinhood and DeFi,’ also highlights persistent challenges around user experience and retention that must be solved for mass adoption.

Simplifying the DeFi Experience

Tiger Research notes that while the underlying financial infrastructure of DeFi has become increasingly sophisticated, the path to widespread use is blocked by a fragmented and often confusing user journey. The report focuses on DeFi App (HOME), a platform that aims to lower these barriers by eliminating common friction points such as gas fees and the need to bridge assets between different blockchains. Instead, it integrates core functions like token swaps, deposits, and derivatives trading into a single, unified interface. This approach mirrors the simplicity of centralized platforms like Robinhood, but within a decentralized framework.

Incentives, Retention, and Sustainable Growth

The report acknowledges that DeFi App has made progress in reducing technical hurdles. However, it points to a critical weakness shared by many DeFi applications: difficulty retaining users once initial incentive programs end. Many platforms have seen user numbers drop sharply after airdrops or yield farming campaigns conclude. To address this, DeFi App has built a model that ties its own growth to on-chain demand through products like ‘Rocket Perps’ and a HOME token buyback mechanism. This creates a direct feedback loop between platform activity and token value, which could encourage longer-term engagement.

What This Means for the Broader DeFi Market

Tiger Research’s analysis suggests that the competition for retail users is no longer just between different DeFi protocols, but between DeFi and centralized finance (CeFi) platforms like Robinhood. If DeFi App can successfully retain its user base and build trust, the report concludes it could establish itself as a leading platform in a niche that Robinhood has not yet entered—offering the self-custody and transparency of DeFi with the user experience of a modern fintech app. The success of this model could serve as a blueprint for other projects aiming to bridge the gap between decentralized finance and the mainstream.

Conclusion

The Tiger Research report underscores a pivotal moment for DeFi: the technology is ready, but the user experience is not. Platforms like DeFi App represent a necessary evolution toward usability, but their long-term viability will depend on solving the retention puzzle. For the broader crypto market, the ability to keep users engaged beyond initial incentives will be a key metric for determining which platforms can truly drive mass adoption.

FAQs

Q1: What is the main finding of the Tiger Research report on DeFi?
The report finds that while DeFi infrastructure is advanced, mass adoption is hindered by complex user experiences and low retention rates. It highlights DeFi App as a project working to simplify the user journey by removing gas fees and bridging, but notes retention remains a challenge.

Q2: How does DeFi App differ from other DeFi platforms?
DeFi App integrates swaps, deposits, and derivatives into a single interface, eliminating common friction points like gas fees and bridging. It also uses a token buyback mechanism and products like Rocket Perps to tie platform growth to on-chain demand.

Q3: Why is user retention a problem for DeFi apps?
Many DeFi apps see user numbers drop sharply after initial incentive programs, such as airdrops or yield farming campaigns, end. Without sustained engagement, platforms struggle to build long-term user bases and trust.