“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. 🧵


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.

@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.

@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.

@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.

@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.

@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.

@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.

@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.

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More from @Dynamo_Patrick

Jul 4
Time for my weekly thread on notable DeFi stats from the past 7 days.

Numbers can give an objective measurement of emerging trends 🔢

This week, I’ll look at TVL, stablecoins, revenue, DEX volume, transaction count and bridge flows. Let’s dive in 🧵

Data is from the following sources:

TVL - DefiLlama
Stablecoins - DefiLlama
Revenue - Token Terminal
DEX Volume - CoinGecko
Transactions - blockchain explorers
Bridge Flows - Uniwhale

Total TVL held steady at around $75B for the second week in a row. This puts it on par with where it was in early April 2021.

Read 20 tweets
Jun 26
Last week dYdX announced they were moving to their own Cosmos chain.

The responses to this revealed a flurry of misunderstandings.

As Cosmos grows, understanding this ecosystem will be crucial. This thread can be your primer on one of the most unique ecosystems in crypto🧵
The most common misunderstanding about Cosmos is that it is a Layer 1 chain with $ATOM as the gas token.

Rather, it’s a collection of interconnected Layer 1s, one of which is the Cosmos Hub and uses $ATOM as its token.

An analogy I like is that each Cosmos Layer 1 is its own planet, and all of these planets reside within the Cosmos.

The IBC allows for seamless, secure transfers between planets, but ultimately each planet has its own set of rules and infrastructure.

Read 18 tweets
May 13
This week was one for the crypto history books.

Delayed by a few days while things shook out, but here is my weekly thread of notable DeFi stats.

This week, I’ll focus on TVL, revenue, DEX volume, transaction count, and bridge flows. 1/X
Data is from the following sources:

TVL - DefiLlama
Revenue - Token Terminal
DEX Volume - CoinGecko
Transactions - blockchain explorers
Bridge Flows - Uniwhale

TVL changes were red across the board. This is what TVL across the current top 10 chains looks like. 3/X
Read 18 tweets
May 4
Time for my weekly thread on notable stats in DeFi from the past 7 days. 📊

Numbers-based analysis can help to identify early trends and cut through the noise.

This week, I’ll look at TVL, protocol revenue, DEX volume, transaction count, and bridge flows.🧵 1/X
Data is from the following sources:

TVL - DefiLlama
Revenue - Token Terminal
DEX Volume - CoinGecko
Transactions - blockchain explorers
Bridge Flows - Uniwhale

First, let’s look at changes in TVL across the top 10 chains.

The biggest winner this week was Tron, driven by a price increase in $TRX. Tron’s TVL grew by 10.6%. This was likely driven by anticipation for their upcoming algorithmic stablecoin launch. 3/X
Read 20 tweets
May 1
1 Like = 1 take on crypto and defi
Alright, let's get this party started:
Most DeFi hacks are executed by the devs. This is equally true when they refund people from the project treasury. In that case, the hack is a roundabout way of them taking the treasury, while avoiding culpability. 1/X
Read 80 tweets
Apr 24
The rise of algorithmic stablecoins is one of the biggest stories in crypto this year.

$UST has rocketed to an $18.2B market cap. Now $NEAR and $TRX have announced their own algo stables

Here’s a thread on how algo stables work, their advantages, and their risks. 1/26
First, to understand algo stables and why there is such a demand for them, let’s examine what people look for in stablecoins.

There are 4 main criteria that investors look for:
1. Stability
2. Liquidity
3. Yield
4. Decentralization

Stability is the most straightforward and most important. To be a stablecoin, a coin needs to actually be stable. In most cases, this means a peg to the US Dollar.

Most stables do this via external collateral, crypto collateral, or an algorithmic mechanism. 3/26
Read 27 tweets

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