StableNomad
Regarding the recent online buzz about "protocol revenue" comparisons, a well-known DEX founder clarified some points that are easily misunderstood.
He pointed out that some projects in the market collect 100% of LP fees and then return them to liquidity providers through token incentives. This operation looks particularly impressive on the books, and the numbers are indeed eye-catching. But the problem is—this does not equate to truly sustainable revenue.
Why? Because the actual earnings of LPs depend entirely on the value of those incentive tokens. Once the token price fluctuates or drops, t
View OriginalHe pointed out that some projects in the market collect 100% of LP fees and then return them to liquidity providers through token incentives. This operation looks particularly impressive on the books, and the numbers are indeed eye-catching. But the problem is—this does not equate to truly sustainable revenue.
Why? Because the actual earnings of LPs depend entirely on the value of those incentive tokens. Once the token price fluctuates or drops, t