Nansen's Strategic Transition to DeFi Infrastructure Builder via JVPs: Assessing the Investment Potential of Early-Stage Protocol Co-Funding Models

Nansen, a leading blockchain analytics platform, has embarked on a transformative journey to redefine its role in the decentralized finance (DeFi) ecosystem. By introducing Joint Venture Protocols (JVPs), the company is shifting from a data-centric provider to an active infrastructure builder, co-creating and co-funding on-chain protocols with trusted partners. This strategic pivot, announced in 2025, positions Nansen at the forefront of a new wave of DeFi innovation, where early-stage protocol co-funding models are gaining traction as high-potential investment vehicles.

The Mechanics of Nansen's JVPs: A New Paradigm in DeFi Infrastructure

Nansen's JVPs are designed to leverage the company's core competencies in on-chain data analytics, AI-driven insights, and community engagement to build standalone protocols in strategic adjacencies such as on-chain trading, AI-powered systems, tokenized products, and data protocols according to Nansen's announcement. Each JVP operates independently but benefits from Nansen's resources, including its intelligence layer, user base, and technical expertise. Crucially, Nansen Points holders-the platform's native token holders-will serve as early stakeholders, aligning their interests with the success of these protocols.

This model diverges from traditional venture capital or grant-based funding by emphasizing collaborative governance and shared risk/reward structures. By embedding community ownership from the outset, Nansen aims to foster long-term sustainability and user-driven development, a strategy that mirrors the success of protocols like Lido and Aave, which have achieved TVLs exceeding $25 billion by 2025.

Investment Potential: Lessons from DeFi's Co-Funded Success Stories
The DeFi landscape has demonstrated that co-funded protocols can generate substantial returns when aligned with market demand and technological innovation. For instance:
- Lido, a liquid staking protocol, has maintained a TVL of over $13.9 billion by 2025, offering users liquidity while staking assets.
- Aave, a decentralized lending platform, expanded its TVL to $25+ billion by 2025, driven by cross-chain interoperability and flash loan innovations.
- Uniswap, a decentralized exchange, achieved a TVL of $3.73 billion by 2025 through its Automated Market Maker (AMM) model.

These examples highlight the scalability of co-funded models when underpinned by clear value propositions and robust governance frameworks. Nansen's JVPs, by focusing on niche areas like AI-driven trading systems and tokenized infrastructure, aim to replicate this success while addressing gaps in the current DeFi ecosystem.

Risk Mitigation and Quality-Over-Quantity Strategy

Nansen's approach to JVPs prioritizes quality over quantity, with the first protocol slated for a 2026 launch. This deliberate timeline allows for rigorous testing and alignment with user needs, reducing the risk of speculative overbuilding. Additionally, the integration of predictive analytics tools-such as Nansen's AI-powered on-chain intelligence-enables data-driven decision-making, a critical factor in mitigating risks like impermanent loss or smart contract vulnerabilities.

Historical data from 2020–2025 shows that DeFi protocols with strong analytics foundations, like Curve Finance (TVL: $7.1 billion) and Compound Finance (TVL: $10+ billion), have outperformed peers by leveraging real-time metrics to optimize liquidity and user engagement according to market analysis. Nansen's JVPs, by embedding analytics into their core, could replicate this edge.

Challenges and Market Considerations

While the potential is significant, Nansen's JVPs face challenges inherent to early-stage DeFi projects. Market volatility, regulatory uncertainty, and competition from established protocols remain key risks. For example, the DeFi TVL rebounded 2.5 times from $36.08 billion in October 2023 to $51.73 billion in 2025, driven by innovations like real-world asset tokenization. However, sustaining this growth requires continuous innovation and adaptability-areas where Nansen's AI-driven insights could provide a competitive advantage.

Conclusion: A Strategic Bet on DeFi's Future

Nansen's transition to a DeFi infrastructure builder via JVPs represents a calculated bet on the future of decentralized finance. By combining its analytics prowess with community-driven co-funding, the company is positioning itself to capture value from high-growth areas like AI-powered trading and tokenized infrastructure. While risks persist, the historical success of co-funded protocols like Lido and Aave, coupled with Nansen's data-driven approach, suggests that early-stage JVPs could deliver compelling returns for investors willing to navigate the evolving DeFi landscape.

As the first JVP nears its 2026 launch, stakeholders will be watching closely to see if Nansen can replicate the scalability and innovation that have defined the DeFi revolution.