DeFi Platform Shifts to B2B Backend as Revenue Drops
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Squaby Intelligence UnitAlgorithmic Fast-Track
A DeFi protocol has pivoted from a consumer-facing app to a behind-the-scenes infrastructure provider for major tech firms, as revenue fell from $80 million to $20 million during the bear market. Its OTC lending business, now at $260 million outstanding, is emerging as the fastest-growing segment with a $1 billion target by year-end.
✦Key Takeaways
✓- A once consumer-focused DeFi platform has repositioned itself as a backend infrastructure provider for large technology companies.
✓- Annual revenue fell sharply from $80 million to $20 million during the bear market, forcing a strategic reset.
✓- Its over-the-counter (OTC) lending business has become the fastest-growing revenue stream, with $260 million currently outstanding.
✓- Management is now targeting $1 billion in OTC lending volume by the end of the year, signaling aggressive expansion.
✓- The pivot reflects a broader trend in crypto: sustainable B2B infrastructure may be more resilient than retail-facing products in volatile markets.
✦Market Analysis
The DeFi sector has spent the last two years separating durable business models from hype-driven growth. For one platform, that meant abandoning the consumer app strategy that once defined its public identity and instead embracing a quieter, but potentially far more scalable role: powering financial infrastructure for tech giants.
That shift was not made from strength alone. Like many crypto-native businesses, the company saw revenue contract dramatically as market conditions deteriorated. At its peak, it generated around $80 million in revenue, but that figure collapsed to roughly $20 million in the bear market. Such a decline underscores the fragility of consumer crypto products, where user activity and fee generation can evaporate quickly when speculative interest fades.
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Rather than chase a shrinking retail audience, the company appears to have found stronger product-market fit in institutional and enterprise services. Its OTC lending operation has emerged as the standout growth engine, with $260 million in outstanding loans. Unlike public market lending products, OTC structures can offer more customized terms, deeper liquidity relationships, and less exposure to headline volatility.
This matters because it points to a larger evolution in the crypto industry. The companies most likely to survive the next cycle may not be the ones with the most visible apps, but the ones embedded into the plumbing of digital finance. By serving as a backend provider, the platform can monetize infrastructure demand without depending on consumer sentiment, app-store distribution, or viral growth loops.
For investors and market observers, the implication is clear: DeFi is maturing. The sector is moving away from speculative front-end products and toward B2B rails, lending infrastructure, and embedded financial services. If the company can scale OTC lending from $260 million to $1 billion, it would signal meaningful demand from institutions and corporate partners seeking crypto-native credit solutions.
At the same time, the target is ambitious. Growth at that pace would require not only more counterparties but also strong risk management, robust collateral controls, and the ability to navigate shifting regulatory expectations around lending and digital assets. Any expansion in this segment will likely be watched closely for signs of credit stress, counterparty concentration, or compliance friction.
✦What's Next
The next phase will test whether the pivot is a temporary defensive move or the foundation for a more durable business model. If the company can keep expanding its OTC lending book while retaining enterprise clients, it could become a case study in how DeFi businesses can reinvent themselves after the bear market.
For the broader market, this development reinforces a key theme: the future of crypto infrastructure may be less about consumer apps and more about invisible financial rails powering existing technology ecosystems. That shift could reshape how value is captured across DeFi, especially for protocols that can combine on-chain efficiency with off-chain enterprise demand.
If the $1 billion lending goal is achieved, it would not only validate the strategy but also highlight a growing appetite for crypto-based credit outside the retail spotlight. If not, it may serve as another reminder that in Web3, distribution and demand can change as fast as the market cycle itself.