Inventory of the empowerment of top DeFi governance tokens: dYdX does nothing, Synthetix returns everything
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Analysis of income and distribution of top decentralized protocols:
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Source: Token Termina July 8 data
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Uniswap, one of the early decentralized exchanges, had revenue of approximately $9.69 million in the past seven days as of July 8. The income comes from the handling fee of user transactions. In Uniswap V2, the handling fee ratio is fixed at 0.3%, while in Uniswap V3, users can customize the liquidity range and handling fee ratio, which enhances its competitiveness in DEX.
The Uniswap official website shows that Uniswap V3 on the Ethereum mainnet, Polygon, Arbitrum, Optimism, and Uniswap V2 on the Ethereum mainnet have generated a total of $1.39 million in fees in the past 24 hours, which is comparable to the average of the past 7 days. Among them, it mainly comes from Uniswap V3 on the Ethereum mainnet, which costs about US$1.1 million; followed by Uniswap V2 on the Ethereum mainnet, which costs about US$200,000.
Uniswap has not achieved complete decentralization, the influence of Uniswap Labs is too great, and the UNI token cannot capture the value generated by the agreement, and all income is distributed to liquidity providers. Although Uniswap's market share in DEX exchanges has risen to about 70%, there are still many users who are dissatisfied with UNI's token model. Former The Block researcher mhonkasalo recently proposed a roadmap for Uniswap, and also hopes that Uniswap can try to open the fee switch in some liquidity pools, so that the treasury of the agreement can extract part of the transaction fees.
Convex Finance: 6% of protocol income is allocated to lockers
Convex (CVX) is a revenue aggregation project. Since Convex pledges a large number of stablecoin exchange protocol Curve (CRV) tokens, Curve allows users to pledge CRV tokens to increase mining revenue by up to 2.5 times. Participate in Curve through Convex Mining can enjoy higher CRV token rewards and additional CVX tokens. Convex won the competition with Yearn, which is also a revenue aggregator. According to the official website data, Convex's TVL is 4.35 billion U.S. dollars, while Yearn's TVL is only 530 million U.S. dollars. The size of the funds under management also determines their profitability. As of July 8, Convex’s revenue in the past 7 days totaled 5.5 million US dollars, and the revenue came from the mining revenue of user funds.
According to Convex's official website, it has helped users earn $245 million to date. In the distribution of income, the agreement charges a total of 17%, of which 10% is allocated to cvxCRV stakers, 5% is allocated to CVX stakers and lockers, and 1% is allocated to CVX lockers as an additional platform fee. 1% as operating expenses. Therefore, 6% of protocol revenue is distributed to CVX stakeholders (stakeholders).
Lido Finance: 5% of the income belongs to the DAO treasury
Lido is the largest liquid staking protocol, providing liquid staking services for Ethereum, Solana, Polkadot, Polygon, and Kusama, with a TVL of approximately US$5.36 billion and rewards paid to users of approximately US$128 million. As of July 8, Lido’s income in the past 7 days was 3.8 million US dollars, and the income came from the staking income of user funds.
User assets will be entrusted to professional node operators without having to maintain the staking infrastructure themselves. Users can obtain the liquidity of pledged assets, and Lido also incentivizes pledged derivatives through liquidity mining. 90% of Lido revenue is owned by pledgers, 5% is allocated to node operators, and 5% is allocated to Lido DAO treasury.
dYdX: The transaction fee is charged by the project party
The main product of dYdX is a perpetual contract exchange built on the second layer of Ethereum. As of July 8, the revenue in the past 7 days was 3.6 million US dollars. According to the official website, the trading volume of dYdX in the past 24 hours is about 822 million US dollars, and the open interest is 303 million US dollars. The project earns income through transaction fees, the highest proportion of which is 0.1%, and discounts can be obtained by staking DYDX tokens. The project also encourages transaction volume through transaction mining and other means.
Although 50% of the DYDX tokens in the project are distributed to the community, more funds have been recovered through incentive activities such as transaction mining, because currently dYdX has not achieved complete decentralization, and transaction fees are centralized managed by the project party. agency charges. dYdX tentatively plans to distribute the transaction fees to users in the v4 version.
Synthetix: All revenue will be rewarded to SNX stakers in sUSD
Synthetix is a synthetic asset protocol that can mint and trade synthetic assets of encrypted assets, foreign exchange, indices, etc. As of July 8, Synthetix’s revenue in the past 7 days was 2.68 million US dollars. The decentralized exchange Kwenta in the ecosystem, the options protocol Lyra, and Polynomial that provides options strategies can all promote the application of synthetic assets.
The income in Synthetix comes from the handling fees during the minting/destroying process of synthetic assets, as well as liquidation fees, all of which are distributed to SNX stakers in the form of sUSD. In addition, the agreement also has SNX inflation rewards for stakers, but this part of the rewards will be unlocked after one year.
The Ethereum Name Service (ENS) is a domain name system on Ethereum that maps human-readable names (such as xx.eth) to machine-readable identifiers, such as Ethereum addresses. As of July 8, ENS has earned $2.23 million over the past seven days.
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ENS charges from the registration and renewal of domain names. Since the registration of most users has not yet expired, ENS charges mainly come from registration fees. For .eth domain names with more than 5 characters, regardless of registration or renewal, ENS charges $5 a year. However, users need to pay Gas fees for each registration or renewal. Previously, the main cost of registering ENS was Gas fees. Due to the recent reduction in Gas fees, the number of ENS registrations has increased significantly, and the income of the agreement has also increased. In 2020, ENS has basically achieved a balance of payments. Now the funds in the ENS treasury are allocated to the DAO organization. At present, ENS has not decided to distribute income to currency holders.
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And there are some projects that can provide complete services, such as dYdX, Synthetix, ENS, etc. In theory, the protocol can also capture all value intact. However, due to different degrees of decentralization and other reasons, there are differences in the distribution of income. For example, Synthetix distributes all income to pledgers, and dYdX temporarily does not distribute income to DYDX holders.
