“Just a valueless governance token.”
A piercing criticism of DeFi tokens has been their lack of real value. Those days are disappearing with many tokens now paying out fees to token stakers.
In this thread, I’ll go through 7 tokens that receive protocol fees directly. 🧵
1/8
A piercing criticism of DeFi tokens has been their lack of real value. Those days are disappearing with many tokens now paying out fees to token stakers.
In this thread, I’ll go through 7 tokens that receive protocol fees directly. 🧵
1/8
GMX - @GMX_IO
GMX, a crypto twitter favorite, is a decentralized perp exchange. $GMX stakers receive ETH by staking on Arbitrum or AVAX by staking on Avalanche.
$GMX revenue has held up over the past few months, even as other protocols have descended deep into a bear.
2/8
GMX, a crypto twitter favorite, is a decentralized perp exchange. $GMX stakers receive ETH by staking on Arbitrum or AVAX by staking on Avalanche.
$GMX revenue has held up over the past few months, even as other protocols have descended deep into a bear.
2/8
@GMX_IO Synthetix - @synthetix_io
One of the OG DeFi projects, Synthetix has received renewed interest as its synthetic assets allow low slippage trades.
$SNX stakers receive protocol fees and inflationary rewards, currently totaling 92% on the Optimism L2.
3/8
One of the OG DeFi projects, Synthetix has received renewed interest as its synthetic assets allow low slippage trades.
$SNX stakers receive protocol fees and inflationary rewards, currently totaling 92% on the Optimism L2.
3/8
@GMX_IO @synthetix_io Trader Joe - @traderjoe_xyz
The largest DEX on Avalanche, Trader Joe allows stakers to choose between boosting rewards, participating in launches, and receiving protocol fees.
If $JOE stakers elect to receive fees, they are paid USDC daily.
Staking currently pays 22% APR.
4/8
The largest DEX on Avalanche, Trader Joe allows stakers to choose between boosting rewards, participating in launches, and receiving protocol fees.
If $JOE stakers elect to receive fees, they are paid USDC daily.
Staking currently pays 22% APR.
4/8
@GMX_IO @synthetix_io @traderjoe_xyz Curve - @CurveFinance
No list of protocols that pay stakers would be complete without Curve.
$CRV can be locked for veCRV, which receives 50% of fees as 3CRV (the LP token for Curve’s 3pool).
This currently comes out to 5.6% APR, not counting bribes to veCRV holders.
5/8
No list of protocols that pay stakers would be complete without Curve.
$CRV can be locked for veCRV, which receives 50% of fees as 3CRV (the LP token for Curve’s 3pool).
This currently comes out to 5.6% APR, not counting bribes to veCRV holders.
5/8
@GMX_IO @synthetix_io @traderjoe_xyz @CurveFinance Umami - @UmamiFinance
Once an OHM fork on Arbitrum, Umami has successfully transitioned into a sustainable protocol with zero inflation.
Umami offers risk-hedged yields, paid out in WETH and USDC. Currently, $UMAMI stakers receive 5.4% APR in the form of WETH.
6/8
Once an OHM fork on Arbitrum, Umami has successfully transitioned into a sustainable protocol with zero inflation.
Umami offers risk-hedged yields, paid out in WETH and USDC. Currently, $UMAMI stakers receive 5.4% APR in the form of WETH.
6/8
@GMX_IO @synthetix_io @traderjoe_xyz @CurveFinance @UmamiFinance LooksRare - @LooksRare
An NFT marketplace that launched earlier this year, LooksRare pays WETH trading fees directly to $LOOKS stakers.
Despite evidence of wash trading, LooksRare has maintained its position as one of the largest fee generators throughout this bear market.
7/8
An NFT marketplace that launched earlier this year, LooksRare pays WETH trading fees directly to $LOOKS stakers.
Despite evidence of wash trading, LooksRare has maintained its position as one of the largest fee generators throughout this bear market.
7/8
@GMX_IO @synthetix_io @traderjoe_xyz @CurveFinance @UmamiFinance @LooksRare Gains Network - @GainsNetwork_io
A DeFi ecosystem on Polygon, Gains allows trading of crypto with 150X leverage and forex with 1000X leverage.
Gains pays fees to LPs in the $GNS/DAI pool, and will transition to single-sided staking.
These fees contribute to a 21% APR.
8/8
A DeFi ecosystem on Polygon, Gains allows trading of crypto with 150X leverage and forex with 1000X leverage.
Gains pays fees to LPs in the $GNS/DAI pool, and will transition to single-sided staking.
These fees contribute to a 21% APR.
8/8
@GMX_IO @synthetix_io @traderjoe_xyz @CurveFinance @UmamiFinance @LooksRare @GainsNetwork_io If you enjoyed this thread, please consider:
1. Liking and retweeting the first tweet in it.
2. Following me @Dynamo_Patrick for more content like this.
1. Liking and retweeting the first tweet in it.
2. Following me @Dynamo_Patrick for more content like this.
https://twitter.com/1377775070156840960/status/1546299829374124034
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