The "profitability" of a project should be one of the indicators we use to evaluate a project. If a project does not have stable income, then selling tokens is the easiest way for them to make a profit.
Any operation on any chain will divert the Fee to different service providers through the design of different protocols. The income will be used as one of the preliminary conditions for screening projects, and other information will be used to find higher-quality projects.
For example, Ethereum's profit mainly depends on the gas fees paid by users. Each transaction or smart contract operation consumes gas fees, part of which is given to the validator as a reward, and the other part is destroyed through the EIP-1559 mechanism, driving ETH deflation.
For example, Uniswap achieves decentralized trading through automated market makers (AMM). Users deposit tokens into liquidity pools (LPs), and the price is calculated based on the proportion of tokens in the pool during transactions, and a 0.3% transaction fee is charged. 0.25% of this fee goes to liquidity providers, and 0.05% is used as protocol revenue.
How to check the income of a project?
†1. Analysis using DeFiLlama
Steps: Open DeFiLLama -> Select "Fees/Revenue" -> Select "Advanced"
As shown in the figure, we can see the basic information including Category, Fees, Revenue, Holders Revenue and so on.
The categories can be filtered. For example, we can only look at DEX projects. The fees are the service fees contributed by users, and the income is part of the fees. The token holders are the shares that the project/protocol shares with the token holders, such as Ethereum.
After sorting, we can observe that Solana is stronger than Ethereum ecosystem in both Liquid Staking and Dex, but the chain fee is lower than Ethereum, and the gas is lower.
However, you cannot see the revenue of all projects in DeFiLLama. If you need to check the revenue, you need to use other tools.
†2. Analysis using Token Terminal
Steps: Open Token Terminal -> Select "Metrics" -> Select "Fees/Revenue"
As shown in the figure, since Fees/Revenue was selected first, only the project categories can be filtered.
However, in Token Terminal, Uniswapâs Fees and Revenues are more than those in DeFiLlama. Uniswap is about twice as much, while DeFiLlama is only about 20% more. This also shows that the data needs to be viewed on multiple platforms together.
†3. Use Dune Analysis
Steps: Open Dune -> Search for "Dex-Metrics" -> Select the creation of "hagaetc"
Dune's data are mostly statistical panels created by individuals and project parties. "Dex-Metrics" is the most complete and comprehensive in the DEX category.
Almost all DEX information is counted. The figure only shows a part of the transaction volume data, as well as market share, aggregator transaction volume, front-end interface market share, etc. The data of Solana and robots are counted separately.
It is worth mentioning that the market share of walletsâ DEX trading volume is getting higher and higher. Happy speculates that in the foreseeable future, the utilization rate of Dex front-end will gradually decrease, and entry-type products will capture more profits.
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When I was writing this article, I found that in the Telegram Bot track, in addition to Banana Gun, there are several bots focusing on Solana, which are worth paying attention to!
Finally, Happy plans to update a profitability data analysis of the project every week. Who made me have a heavy position in DEX? đ
