Ignas | DeFi Research
Ignas | DeFi Research

@DefiIgnas

9 Tweets Apr 05, 2023
1/ Does generating high protocol fees convert into better token performance?
In other words, do #realyield tokens outperform other #DeFi tokens?
Let's find out ๐Ÿงต
2/ I researched this question two months ago.
Before the #realyield narrative consolidated.
Back then the answer was no.
Short term product development/shilling > generated fees.
And now?
3/ This time the answer is yes. The narrative worked!
In general, tokens considered #realyield outperformed other #DeFi tokens.
$GMX, $GNS, $UMAMI, $SNX and $CRV price rebounds from all time lows were impressive!
Still, $LDO outperformed them all.
The merge > all else ๐Ÿ˜…
4/ It's worth mentioning, that not all high revenue generating tokens did so well.
$DYDX, $JOE or $ENS also generate high revenue
But token rebounds were much weaker than 'not real yield $UNI' and they failed to outperform $ETH.
5/ At the end of the day #crypto token prices are driven by narratives.
If with the #realyield you are looking for passive income, then stablecoin farming or #ETH staking might be the best choice for you.
6/ Having said so, real revenue generation is a welcoming development in crypto.
It means protocols find Product Market Fit and manage to generate income during a tough bear market.
But we are still early, so don't expect to avoid volatility by investing in #realyield tokens.
7/ To learn more about #realyield tokens, check the OG threads below๐Ÿ‘‡
9/ And by @TheDeFinvestor

Loading suggestions...