#DEFI Blue chip protocols
Most become increasingly popular due to generating significant fees upwards of $1M USD per day!
Will projects capable of generating actual revenue survive in the long run!?
#DEX models sustainable enough in the future!? 🧵
▪︎Positive: most of DeFi protocols are innovative token design, directing emissions towards holders staking their tokens or reducing trading fees for holders.
▪︎Negative: limited utility
Decentralised Exchange (DEX) protocols offers users entire oportunity in trading one token for another token in a peer-to-peer way.
Most DEXs use automated market makers (AMMs) whereby liquidity providers send their tokens into a liquidity pool.
DEXs generate revenue by taking fees for every transaction.
Liquidity in exchange for interest offered by providers
By using DEXs everyone can acess to dinamic and competitive environment trading pool on this protocols with different options .
Future will decide who stays or not, besides late development in this area, believe we really are in early-stage field, where businesses model being profitable can be a mirage!
Undoubtedly expense models will be launched.
#DeFi might have to improve their platforms integrating sustainable tokenomics that do not solely rely on token emissions in order to keep their revenues solid in a long run!
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