Decentralized exchange (DEX) QuickSwap, built on the Polygon network, released a new episode of its popular podcast series “The Aggregated” on platform X, focusing on the topic “Are Incentives Broken in DeFi?” to explore whether the reward structures and economic motivations within decentralized finance (DeFi) are functioning as intended.
The episode, hosted by Roc Zacharias, co-founder of QuickSwap, and Aztec Amaya, CSO of Lunar Digital Assets and founder of LitVM, featured a panel of leading industry experts.
The discussion began with brief introductions of the speakers, who represented a range of projects and perspectives within the DeFi ecosystem. Participants included Danny, a content creator from RUNEBond, a platform connecting users and node operators; Boba, a senior business development lead, representing ApeBond, a decentralized platform for token purchases with vesting schedules; Varun Satyam, product lead at Hyperbola, a data layer that aggregates distributed information; Timmy, a member of Polygon’s marketing team; and Tom, a leading advocate for Polygon and AggLayer, among others.
The conversation quickly turned to the question of whether incentives in DeFi are broken. Specifically, the panel debated whether high APYs are a necessary tool for growth or a risky overextension. Speakers noted that in the early days of Tor chain, high APYs were used strategically to bootstrap the network. While this approach exposed the protocol to bugs initially, it ultimately helped establish a strong foundation. Today, such high yields are no longer necessary once protocols reach maturity, and incentives can shift to more sustainable structures.
Several panelists agreed that relying solely on APYs to attract capital can create instability, with projects competing destructively for liquidity. Sustainable growth requires diverse assets and carefully designed incentives to ensure long-term viability. One approach highlighted was the method used by newer layer-2 chains, such as Katana, which leverages Morpho to stake assets and return yield safely to the chain through additional contracts. By minimizing risk and providing deep liquidity alongside attractive yields, these protocols create a more stable environment for users.
Bootstrapping mechanisms were also discussed. Some projects temporarily reduce or eliminate fees, a strategy observed both in traditional finance and emerging DeFi protocols, to attract initial participation. Panelists emphasized that the community’s mentality has evolved, with an increasing focus on incentivizing participants responsibly. Quickswap, for instance, transitioned from simple staking rewards to more sustainable strategies, including token buybacks to manage surplus and maintain long-term health.
The conversation also touched on regulatory sentiment. After a period of uncertainty, participants expressed optimism about the current environment, describing it as a “green light” to innovate without constant concern over compliance hurdles. This, they argued, is a unique opportunity to address foundational issues in DeFi, refine incentive structures, and build systems that not only manage money efficiently but also create meaningful opportunities for users.
The conversation offered a forward-looking perspective: fixing the underlying financial mechanisms and improving the systems built on them could impact the broader DeFi ecosystem, driving more sustainable growth and opening new avenues for participation.
The conversation turned to how incentives should evolve as the DeFi industry matures. Early-stage projects rely heavily on incentives to attract users, but as platforms grow, other factors—such as improved user interfaces, lower fees, and better overall usability—become more important.
Speakers noted that regulatory shifts and market fluctuations have historically impacted incentives, sometimes creating price squeezes as new projects and institutional players enter the space. In response, some protocols now use alternative strategies to attract users, such as point-based systems or aggregators, rather than relying solely on token emissions.
Initially, user interest in DeFi was largely driven by financial gain, but as the market matures, usability and value propositions are becoming key drivers of adoption. Incentives are shifting toward “real yield” approaches that support healthy liquidity pools and provide tangible benefits to communities.
Cross-chain and institutional strategies are also emerging, allowing more sophisticated participants to engage while improving on-chain experimentation. Speakers emphasized that as the industry evolves, user experience will continue to improve, paving the way for a seamless, accessible DeFi ecosystem that balances rewards with functionality.
Speakers acknowledged that despite progress in speed and lower fees, the DeFi user experience remains challenging. Simple tasks, such as bridging liquidity or unwinding positions, are still overly complex for newcomers. One participant recounted spending four hours to unwind a position, noting that while improvements have been made since four years ago, usability is still a major hurdle.
In order to address this, one-click strategies and AI-powered tools are emerging. Platforms are creating bots that automate complex actions, enabling features like stop-loss orders, cross-chain executions, and options previously limited to centralized exchanges. The focus is on abstracting complexity so users can interact with protocols seamlessly, without deep technical knowledge.
AI agents, according to Adam from CircuitAI, are poised to further transform the space. While fully autonomous agents are still rare, current systems can execute protocol-specific tasks or navigate multiple markets with minimal user input. Over time, these agents are expected to provide guidance, act as sidekicks for retail users, and evolve into broader financial advisors handling cryptocurrency, stocks, and other assets.
Speakers agreed that AI will enhance decision-making and efficiency rather than replace human judgment. By combining improved interfaces with intelligent agents, the next generation of DeFi aims to deliver a more accessible, intuitive, and fully integrated Web3 experience.
The discussion attracted a lot of attention, with over 1100 listeners engaging and posing questions.
The full podcast recording is available through the provided link for those interested in exploring the topic of incentives in DeFi further.
— QuickSwapDragonFi 2.0 (@QuickswapDEX) September 12, 2025
“The Aggregated” is a well-known Web3 podcast that airs every Friday at 3 pm UTC on Twitter. It is recognized for the engaging and complementary style of its hosts, which combines informative discussion with an entertaining approach that resonates with listeners.
The show features participants from both emerging projects and established ecosystems, including industry leaders and key influencers, fostering connections and bridging different segments of the Web3 community. Its diverse content keeps it central to industry conversations, making it a valuable resource for anyone following blockchain and cryptocurrency developments. Over the past year, the event has hosted guests from sectors such as blockchain, finance, technology, politics, entertainment, and more.
This is not the first time Mpost has joined “The Aggregated” as a listener to gain insights from leading industry voices and explore their perspectives.
At the end of August, the podcast featured a discussion on “On-Chain Betting, Gambling, Predictions, and Related Activities on Web3 Platforms.” The conversation examined the role of Web3 prediction markets as forecasting versus gambling tools, transparency and staking incentives, risks of manipulation and insider trading, regulatory and KYC considerations, the balance between anonymity and accountability, and other aspects of this widely discussed topic.
The post Are DeFi Incentives Broken? QuickSwap’s New ‘The Aggregated’ Episode Sparks Industry Debate appeared first on Metaverse Post.
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