Analysis of 7 Real Yield Projects in the DeFi Field

In the DeFi ecosystem, many projects attract liquidity through high token incentives. Although this practice can lead to short-term TVL growth, there are two main long-term issues: first, excessive issuance of tokens without value support may lead to system collapse; second, low user loyalty means that a reduction in incentives will shift to other new projects.

Therefore, truly valuable Decentralized Finance protocols should have the following characteristics:

1. The product has a high market fit and stable user demand.
2. Able to generate actual on-chain income
3. Revenue is greater than operating costs and token issuance
4. Pay returns with reliable assets such as ETH or stablecoins.

Based on these standards, the following 7 projects are worth paying attention to:

1. BTRFLY (Redacted Cartel)

BTRFLY has launched version V2, transitioning from a dilution model to a real yield model. Users can earn ETH yield distribution by locking BTRFLY, with the yield sourced from its capital and product ecosystem.

2. Gains Network (Polygon)

Decentralized leverage trading platform, offering up to 150x leverage on cryptocurrencies, stocks, and forex. Currently providing DAI Vault and GNS-Dai LP, single coin GNS staking will be launched soon.

3. Umami (Arbitrum)

• mUMAMI: Depositing UMAMI can earn approximately 5% annualized WETH yield from protocol revenue.
• GLP/TCR USDC Pool: Approximately 20% annual yield, hedging market volatility through GMX fees and TracerDao.

4. Kujira (Cosmos)

Provides a variety of products such as Orca, Fin, Blue, etc. Staking KUJI can earn a portion of the protocol's revenue, currently an annualized rate of about 0.49%. With the development of the ecosystem, the yield is expected to improve.

5. Trader Joe (Avalanche)

Avalanche's top DEX. Stake JOE to earn USDC rewards, with earnings coming from a 0.05% trading fee.

6. Synthetix (Ethereum / Optimism)

Innovative synthetic asset protocol. Staking SNX can earn:

1. sUSD earnings from traders
2. SNX Inflation Rewards

7. GMX (Arbitrum / Avax)

Decentralized exchange, providing 30x leverage. 30% of the trading fees are converted to ETH/AVAX and distributed to GMX stakers. It is the top-ranked dApp on Arbitrum, with a continuously rising usage.

Tools for Research Projects

• TokenTerminal / CryptoFees: Find sources of income
• Dune Analytics: View project data dashboard
• Messari: Token Supply Information
• Project Internal Data Dashboard

When evaluating a project, factors to consider include: sources of revenue, scale of income, token supply and issuance, methods of profit distribution, network appeal, and other factors.

Risk Warning

1. The profit-sharing model of some protocols may face regulatory risks.
2. Some projects are based on complex financial engineering, which carries potential risks.