The Rise of Real Yield Protocols in the DeFi Space

Recently, a new trend has emerged in the DeFi market: protocols that focus on real yields are becoming increasingly popular. These protocols no longer rely on high token rewards to attract liquidity, but instead draw users in by providing actual value and sustainable income models.

The traditional high token emission model has two main problems: first, excessive issuance may lead to token devaluation; second, users lack loyalty and are prone to churn. In contrast, real yield protocols can generate stable cash flow, providing actual value to token holders.

Real yield protocols typically have the following characteristics:

1. The product has a high market fit, able to attract users even without additional incentives.
2. Generate on-chain income through products.
3. Revenue exceeds operating costs and token emissions.
4. Use stable assets ( such as ETH or stablecoins ) to pay yields.

Some typical real yield protocols have emerged in the market.

1. BTRFLY (Redacted Cartel): Through the rlBTRFLY locking mechanism, users can earn ETH dividends.

2. Gains Network: A decentralized trading platform that offers high leverage and supports cryptocurrency, stock, and forex trading.

3. Umami: Users can deposit UMAMI into mUMAMI to earn passive income in WETH from protocol revenues.

4. Kujira: A diverse Decentralized Finance ecosystem, including the liquidation platform Orca and the decentralized exchange Fin. KUJI stakers can share the protocol revenue.

5. Trader Joe: The leading DEX on Avalanche, converting trading fees into stablecoin distributions for sJOE holders.

6. Synthetix: An innovative synthetic asset protocol, SNX stakers can earn trading fees and inflation rewards.

7. GMX: A decentralized perpetual contract trading platform that allocates trading fees to GMX stakers.

These protocols have shown good growth momentum and user stickiness. When evaluating such projects, investors should focus on key indicators such as sources of revenue, scale of income, token supply and emission, and payment methods. They should also be aware of potential regulatory risks, especially those involving revenue-sharing models.

Overall, real yield protocols represent a more mature and sustainable direction for development in the Decentralized Finance field, and are worthy of continued attention from market participants.