1) There's been a new crypto narrative called "REAL YIELD" in the markets lately.
What is "real yield" actually and how do you benefit from it?
π§΅π
What is "real yield" actually and how do you benefit from it?
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2) Since the early introduction of DeFi we've seen "yield farming" become incredibly popular.
Numerous projects started offering insane yields (interest) to attract buyers and create demand.
Who doesn't want 1000%+ interest after all!?
Numerous projects started offering insane yields (interest) to attract buyers and create demand.
Who doesn't want 1000%+ interest after all!?
3) Little did people know this was unsustainable and quite often unprofitable...
This early "yield farming" model is flawed because it is based on excessive emissions of the protocolsβ native tokens rather than sharing organic protocol profits.
This early "yield farming" model is flawed because it is based on excessive emissions of the protocolsβ native tokens rather than sharing organic protocol profits.
4) In simple terms this meant when you receive 1000% apy (interest) the supply of the token also went up 1000%.
The yield you get minus the token inflation would net you 0 profit.
New crypto investors with little knowledge about tokenomics didn't know any better.
The yield you get minus the token inflation would net you 0 profit.
New crypto investors with little knowledge about tokenomics didn't know any better.
5) On paper you would still see insane yield numbers without actually knowing where it comes from (printing of tokens).
After exhausting several narratives since DeFi summer, the crypto industry is now converging toward a new one.
A narrative called "REAL YIELD".
After exhausting several narratives since DeFi summer, the crypto industry is now converging toward a new one.
A narrative called "REAL YIELD".
6) The term refers to protocols that incentivize token ownership and liquidity mining by sharing profits generated from fees.
Not just rewarding the "stakers or liquidity providers" with native tokens made from printing but "REAL REVENUE".
Not just rewarding the "stakers or liquidity providers" with native tokens made from printing but "REAL REVENUE".
7) Quite often you even get paid in stablecoins (USDC) or ETH.
Most of the crypto market isn't generating real revenue outside of the success of their own token demand which is normal due to the early age of crypto we are in.
Most of the crypto market isn't generating real revenue outside of the success of their own token demand which is normal due to the early age of crypto we are in.
8) Some protocols however ARE.
We are seeing an increasing trend in "decentralized trading" protocols offering real yield.
These protocols are generative real revenue not through the demand or purchase of their native tokens BUT through trading fees.
We are seeing an increasing trend in "decentralized trading" protocols offering real yield.
These protocols are generative real revenue not through the demand or purchase of their native tokens BUT through trading fees.
9) Offering token holders a percentage of this revenue next to the investment shows why this narrative is getting so popular (with good reason).
While I won't directly review every "REAL YIELD" protocol out there I will highlight some of the emerging popular ones with examples.
While I won't directly review every "REAL YIELD" protocol out there I will highlight some of the emerging popular ones with examples.
10) $GMX
GMX is a decentralized spot and perpetual exchange that has done incredibly well in this bear market.
70% of the exchangeβs trading fees are paid to liquidity providers or GLP token holders in the form of ETH on Arbitrum and AVAX on Avalanche.
30% goes to GMX stakers.
GMX is a decentralized spot and perpetual exchange that has done incredibly well in this bear market.
70% of the exchangeβs trading fees are paid to liquidity providers or GLP token holders in the form of ETH on Arbitrum and AVAX on Avalanche.
30% goes to GMX stakers.
11) $SNX
Synthetix is a decentralized protocol for trading synthetic assets and derivatives.
According to @tokenterminal data, the protocol generates an annualized revenue of around $82 million, and the full sum goes to SNX stakers.
Synthetix is a decentralized protocol for trading synthetic assets and derivatives.
According to @tokenterminal data, the protocol generates an annualized revenue of around $82 million, and the full sum goes to SNX stakers.
12) $GNS
Gains Network is the decentralized protocol behind the perpetual and leveraged trading platform gTrade.
In total, 40% of the fees from market orders and 15% from limit orders are allocated to GNS single-sided stakers.
Gains Network is the decentralized protocol behind the perpetual and leveraged trading platform gTrade.
In total, 40% of the fees from market orders and 15% from limit orders are allocated to GNS single-sided stakers.
13) Many new trending "real yield" protocols:
$YDF
$SER
$MVX
$PALM
$DXP
...
$YDF
$SER
$MVX
$PALM
$DXP
...
14) CONCLUSION
It's easy to see why this new trend is doing well so far.
Taking part in the revenue of the earning model from protocols is pretty awesome.
These protocols are all the rage and as such it's not a bad idea to look for opportunities here.
It's easy to see why this new trend is doing well so far.
Taking part in the revenue of the earning model from protocols is pretty awesome.
These protocols are all the rage and as such it's not a bad idea to look for opportunities here.
15) Both existing ones but also upcoming ones at lower price levels (market cap).
It's no secret investing based on the current narrative can play out extremely well.
β’ Remember DeFi season?
β’ Remember meme season?
β’ Remember metaverse season?
β’ Remember layer 1 season?
It's no secret investing based on the current narrative can play out extremely well.
β’ Remember DeFi season?
β’ Remember meme season?
β’ Remember metaverse season?
β’ Remember layer 1 season?
16) When a narrative plays out quite often some do insane multipliers.
Keep in mind when the narrative ends they can do the same to the down side (trading is still a zero sumn game).
Do your research, get in early and DON'T buy the big pumps.
Wait or pick another.
Nova out β€οΈ
Keep in mind when the narrative ends they can do the same to the down side (trading is still a zero sumn game).
Do your research, get in early and DON'T buy the big pumps.
Wait or pick another.
Nova out β€οΈ
17) If you want to keep up to date to most of my content and interesting projects give me a follow @CryptoGirlNova.
I also research the communities top voted cryptocurrency every week so you can keep track of all the most exciting projects.
Your favorite writer Nova βοΈ
I also research the communities top voted cryptocurrency every week so you can keep track of all the most exciting projects.
Your favorite writer Nova βοΈ
18) If you had value from this and liked this thread, it would really bring a smile to my face if you could retweet the first post so this can help as many people as possible.
Everyone deserves free knowledge π
Love you all β€οΈ
First post π
Everyone deserves free knowledge π
Love you all β€οΈ
First post π
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