{"id":22978,"date":"2022-07-16T01:05:52","date_gmt":"2022-07-16T01:05:52","guid":{"rendered":"http:\/\/egrowonline.com\/?p=22978"},"modified":"2022-07-16T01:05:52","modified_gmt":"2022-07-16T01:05:52","slug":"defis-downturn-deepens-but-protocols-with-revenue-and-fee-sharing-could-thrive","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=22978","title":{"rendered":"DeFi\u2019s downturn deepens, but protocols with revenue and fee sharing could thrive"},"content":{"rendered":"


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At the moment, liquidity is hard to come by, but crypto traders and protocols still need inflow and revenue to remain functional.<\/p>\n

As the crypto winter drags on, savvy crypto investors have realized that one of the reliable sources of passive income that still exists can be found on protocols that generate revenue and share some of it with their respective communities. <\/p>\n

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Platforms that earn real yield through useage fees are the obvious winner in the bear market, That mean perpetuals and options as they are profitable bear or bull. Thats why #GMX<\/a> is hot, #snx<\/a> fees up massively and #eth<\/a> is just a no brainer.<\/p>\n

\u2014 Collingwood.lens (@Fraxima1ist) July 13, 2022<\/a><\/p><\/blockquote>\n

Let’s take a look at some of the protocols that continue to thrive in the current down market. <\/p>\n

DeFi might be dead, but platforms with revenue will thrive<\/h2>\n

Data from Token Terminal shows<\/a> revenue positive platforms are primarily the nonfungible token (NFT) marketplaces like LooksRare and OpenSea. <\/p>\n

Top dapps based on cumulative protocol revenue in the past 180 days. Source: Token Terminal<\/em><\/figcaption><\/figure>\n

Aside from a few select protocols including MetaMask, Decentral Games, Axie Infinity and Ethereum Name Service, the majority of the remaining protocols with the highest revenue are decentralized finance platforms, showing that while DeFi is down, it’s not out of the game. <\/p>\n

Fee sharing helps to lure liquidity<\/h2>\n

DeFi protocols and\u00a0decentralized applications (DApps)<\/a>\u00a0that offer fee sharing to token holders and liquidity providers are also revenue positive.<\/p>\n

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Historical view of crypto\/web3 projects that generate fee revenue to their token holders.<\/p>\n

Protocol revenue market share leaders in ’21:
Q1: MakerDAO
Q2: PancakeSwap
Q3: Axie Infinity
Q4: Ethereum pic.twitter.com\/zNRFnss7c4<\/a><\/p>\n

\u2014 Token Terminal (@tokenterminal) January 29, 2022<\/a><\/p><\/blockquote>\n

As the bear market continues to batter prices and eliminate unprofitable and poorly managed platforms, protocols that offer token holders passive income streams have a higher chance of enduring until the next bull market begins.<\/p>\n

Related: <\/em><\/strong>DeFi Summer 3.0? Uniswap overtakes Ethereum on fees, DeFi outperforms<\/em><\/strong><\/a><\/p>\n

Synthetix (SNX) makes a comeback<\/h2>\n

A good example of how fee sharing can help boost a token and DeFi protocol was recently seen with Synthetix (SNX), which made waves when it partnered with Curve Finance<\/a> to create Curve pools for several of its Synths assets. <\/p>\n

Since the cross-chain collaboration was established, the protocol revenue for Synthetix has seen a tremendous increase that coincided with a rise in the price of SNX from $1.56 to its current price at $2.59. <\/p>\n

SNX daily price vs. protocol revenue in the past 180 days. Source: Token Terminal<\/em><\/figcaption><\/figure>\n

The increase in revenue did not go unnoticed by crypto Twitter, which was quick to point<\/a> out the rapid turnaround for the platform.<\/p>\n

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$SNX<\/a> @synthetix_io<\/a> bypassed @AaveAave<\/a> in daily fees Also, @SushiSwap<\/a> @CurveFinance<\/a> @MakerDAO<\/a> combined. pic.twitter.com\/w1dBVHL2YD<\/a><\/p>\n

\u2014 Wega (@William24931283) July 7, 2022<\/a><\/p><\/blockquote>\n

How it all plays out for Synthetix in the long run, is anyone\u2019s guess. For now, the platform is demonstrating that generating revenue and sharing some of that revenue with token holders is one way to retain market share during a market downturn.\u00a0<\/p>\n

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<\/div>\n


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At the moment, liquidity is hard to come by, but crypto traders and protocols still need inflow and revenue to remain functional. As the crypto winter drags on, savvy crypto investors have realized that one of the reliable sources of passive income that still exists can be found on protocols that generate revenue and share […]<\/p>\n","protected":false},"author":1,"featured_media":22979,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[40],"tags":[4076,7734,4010,3203,477,4523,9786,9787],"class_list":["post-22978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis","tag-deepens","tag-defis","tag-downturn","tag-fee","tag-protocols","tag-revenue","tag-sharing","tag-thrive"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/07\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvY2U0YTk4NjItZDhiZS00MDg5LThkYjMtOWY5M2JkZmQ0YzhkLmpwZw.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/22978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22978"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/22978\/revisions"}],"predecessor-version":[{"id":22980,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/22978\/revisions\/22980"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/22979"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22978"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}