How to Attract More DeFi Users to Tezos in 2026

DeFi is where many blockchain users first put money to work, through lending, borrowing, token swaps and staking. A chain with a healthy set of DeFi apps tends to hold more balances, attract more developers and give users a reason to stay. For Tezos, this matters because the base network and its wider ecosystem compete with chains that have large, liquid DeFi markets.

Recent reporting paints a mixed picture. A February 2025 analysis said Tezos Layer 1 activity had declined by about 5 percent, while Etherlink, an EVM-compatible layer 2 connected to Tezos, saw strong growth in Web3 gaming and DeFi projects. That split matters. If activity moves to Etherlink, the wider Tezos ecosystem can still benefit, but readers should check which layer a given app runs on before assuming it strengthens the base chain.

Adoption has two parts: getting new users to arrive, and keeping them once they do. Attracting users usually means easier onboarding, clear app discovery, reachable liquidity and rewards that make a first visit worthwhile. Keeping them requires reliable apps, low friction for moving funds in and out, and a reason to return after incentives end.

Before trying to grow anything, measure it. Useful indicators include total value locked, trading volume, fee revenue, active wallets over a recent window and the number of apps with live activity. This guide does not state current figures, because these numbers change often. Instead, check them on the day you read this.

• Total value locked on Tezos, and separately on Etherlink
• Trading volume and fee revenue for decentralized exchanges and lending apps
• Count of active accounts over 30 days rather than all-time totals
• Number of distinct apps with transactions in the last month

A single high reading can come from one incentive campaign, so compare trends across several months. Also check how each source defines its metrics. One dataset may count a token bridged into an app as deposited value, while another may not. Mixing definitions leads to wrong conclusions about whether a chain is growing.

Finally, note the date on every report. A figure from early 2025 describes a different market from one published in late 2025, and the difference can change the picture for a whole chain.

A user comment in a public forum describes someone who started using DeFi on Tezos and could not find many apps. That experience is common for newcomers, and it has several causes. The developer base is smaller than on the largest EVM networks, so fewer teams are shipping products. Liquidity is spread across fewer pools, which makes swaps less attractive. Some activity has moved to Etherlink, so apps are split across two layers.

Discoverability is another gap. Many users arrive through a search engine or a friend and have no single place to see which apps are live, which network they use and whether they have been audited. Without that information, people leave or stick to a few familiar tools.

Practical fixes are straightforward. Maintain a single, current directory that labels each app by network, status and audit availability. Publish tutorials that walk through the first swap and the first deposit, step by step. Make wallet setup clear, including how to fund the wallet and where to find the right network. Projects can also share their roadmap and say which parts are live, so newcomers know what to expect.

Reporting from July 2025 described more than $3 million in applXTZ rewards being rolled out to stimulate DeFi activity on the network. According to that update, 20 percent of the rewards could be claimed upfront, with the rest tied to continued participation. Treat those details as a snapshot. The program's terms and the network's current announcements are the place to confirm whether it is still running and how rewards are paid.

Incentives do useful work. They bring first users, seed liquidity and give new apps a reason to be tested. They also have limits. Activity often falls once rewards end, and users who came only for the payout tend to leave. A program that is judged only on peak activity during the campaign can look successful while doing little for long-term growth.

When you assess any incentive, ask a few questions. Are rewards tied to real usage such as trades or deposits, or to simple sign-ups? Are they time-limited? How much of the reward is locked, and how much can be claimed immediately? Does the reward token have a real use beyond the program? Then compare activity in the months after the campaign ends. Sustained usage is the better signal of adoption.

A November 2025 report said a consumer finance app, Revolut, would remove fees for tez holders on its platform, and that holders there would automatically earn the full delegation rewards generated by the Tezos network. That kind of change lowers the cost of entry for ordinary users, which is part of how a chain attracts people who are not already active in crypto.

It helps to understand delegation in plain terms. On Tezos, a holder can delegate their tez to a baker, which means the baker helps secure the network while the holder keeps control of the funds in their own account. Rewards are shared according to the terms the baker sets. This is different from lending coins to a platform, so the protections and risks are not the same.

The important distinction is custody. A fee-free offer inside a custodial app does not give you the same access as a self-custody wallet. Before relying on any such offer, read the terms, confirm which countries are supported, check whether fees apply to withdrawals, and confirm that you can move funds to a wallet you control. If your goal is to use DeFi apps directly, you will still need a self-custody wallet and the usual safety steps.

Tezos is designed to change its own protocol through an on-chain process of proposals and votes. This is one of the network's core design features. For DeFi, governance matters because protocol upgrades can affect fees, performance and the tools that apps depend on. A governance process that few people take part in can stall useful changes for months.

A piece published in October 2025 argued that participation matters because proposals that get little attention can cause frustrating delays. That point applies to DeFi as well. If builders and users do not weigh in on changes that matter to applications, the network may move more slowly than the ecosystem needs.

There are practical steps. Users who hold tez can delegate to an active baker and follow the governance process through the network's official resources. If you hold tez in a wallet that supports voting, you can take part directly. Builders can review proposals that touch their area, such as fee structure or contract tooling, and share their assessment with the community. Keep your own judgment in charge: read the proposal text, not only summaries, and check the timing and status on official channels.

DeFi apps depend on infrastructure that many users never see. The main categories are indexers, which organize on-chain data so apps can query it quickly; remote procedure call endpoints, which let apps and wallets read from and write to the chain; price oracles, which supply market prices to lending and derivatives apps; cross-chain bridges, which move assets between networks; and analytics tools that show users and builders what is happening. A gap in any of these slows development.

Tezos has its own tooling, and Etherlink adds an EVM-compatible environment. A February 2025 analysis linked Etherlink to attracting users and developers from other EVM networks, because familiar tools and smart contract patterns carry over. That lowers the cost for a developer who already knows Solidity-style workflows, and it can bring established application designs to the wider ecosystem.

Bridges need extra care. Moving assets from another chain requires a route that supports the destination network, and each route carries its own smart contract and operational risk. Check which bridges support Tezos or Etherlink, confirm the token you receive is the official version, and start with a small transfer. For developers, the most useful investments are clear documentation, reusable and audited code, public test environments and reliable endpoints that stay online under load.

Builders who want to attract DeFi users can follow a sequence that puts users first. The steps below are general practice rather than a guarantee of results.

1. Choose one or two use cases where Tezos or Etherlink has a real advantage, such as low-cost transactions for a specific user group or a clear need for a missing product.
2. Launch with audited code and publish the audit reports, including the scope and any open findings.
3. Seed liquidity for the most common trading pairs and explain where that liquidity comes from and how long it is committed.
4. Write onboarding guides that cover wallet setup, funding, the first swap and the first deposit, and say which network each step uses.
5. List the app in a maintained directory and keep its status, network and contract details current.
6. Measure retention, meaning how many users return after the first week or month, not only sign-ups.
7. Plan for usage after any incentive ends by building features that people value without rewards.

The common thread is trust and clarity. Users need to know what the app does, where it runs, what it costs and what can go wrong. Apps that answer those questions plainly tend to keep users longer than apps that rely on campaigns alone.

DeFi carries real risks, including smart contract bugs, price moves, liquidity shortfalls and scams that imitate legitimate projects. The points below are defensive practices for anyone trying a Tezos or Etherlink app. They are not financial advice, and no list removes risk.

• Confirm the official website from the project's own channels, and be cautious of links in search ads, direct messages or unsolicited posts.
• Look for a published audit, check its date and scope, and read any stated open issues.
• Start with a small amount to test each step: connecting the wallet, swapping, depositing and withdrawing.
• Never share a seed phrase or private key. No legitimate app needs them, and anyone who asks is attempting to take your funds.
• Review token approvals in your wallet and revoke any you no longer need.
• Confirm which network the app uses before sending funds, and check that the token contract matches the official address.
• Keep records of transactions for tax and reconciliation purposes, and check the rules that apply where you live.

If an offer looks too good to be true, it probably is. Rewards that are very high, urgent deadlines and requests to move funds to a new contract are common warning signs. Taking your time is one of the strongest protections available.

The best indicator of whether Tezos attracts DeFi users is sustained activity across both Tezos and Etherlink, measured over long periods rather than around single campaigns. Watch whether the number of distinct active accounts rises, whether liquidity stays in pools after incentives end and whether new apps keep launching with clear documentation.

Keep an eye on governance outcomes as well. Protocol changes that reduce friction for users or lower the cost of building would be meaningful for DeFi. Follow the official proposal and voting process rather than summaries alone, and check the status of each item.

For infrastructure, watch the availability of indexers, endpoints and bridges that support the networks you use. Reliable infrastructure is often invisible until it fails, so it is worth confirming that the tools you depend on keep running.

Finally, treat every figure in this guide as a starting point. Pull current data, check the date, compare sources with consistent definitions and form your own view. A chain grows when its apps are useful, safe and easy to find, and those qualities can be checked directly.