SoSoValue said its DeFi sector index, $DEFI.ssi, rose from 0.3616 on Aug. 17 to around 0.498, a cumulative gain of about 37.7%. The move came alongside a recovery in Bitcoin and Ether and short covering, while investors reassessed whether established DeFi protocols can return more revenue to token holders.
The report said the shift in U.S. policy expectations has become a key factor. A recent U.S. Securities and Exchange Commission draft framework for crypto asset regulation includes exemption provisions and a conditional safe harbor for certain crypto asset issuances. A draft Senate CLARITY bill would also provide protections for non-controlling developers, validators, and others in DeFi, while leaving room for rewards tied to trading and staking.
Revenue-linked token models are also back in focus. Over the past 30 days, Uniswap generated about $7.18 million in revenue, followed by PancakeSwap, Jupiter, Aave, and Aerodrome. Examples cited in the report include Hyperliquid using part of its trading fees to buy HYPE, Uniswap linking revenue to UNI burns, Jupiter allocating 50% of protocol fees to buy JUP, and Ethena proposing to use 95% of net revenue from its three core business lines for ENA buybacks once USDe reaches a preset supply threshold.
SoSoValue said its DeFi sector index, $DEFI.ssi, rose from 0.3616 on Aug. 17 to around 0.498, for a cumulative gain of about 37.7%.
The platform said the rally came with a recovery in Bitcoin and Ether, as well as short covering. At the same time, investors have been reassessing whether established DeFi protocols can return a larger share of revenue to token holders.
U.S. policy shift draws market focus
The report said a change in the U.S. policy outlook is being treated as a key driver. A recent draft framework on crypto asset regulation from the U.S. Securities and Exchange Commission, or SEC, includes exemption provisions and a conditional safe harbor for certain crypto asset issuances.
A draft Senate CLARITY bill would go further by providing protections for non-controlling developers, validators, and others in DeFi, while leaving room for rewards related to trading and staking. The market is assigning greater confidence to the direction of U.S. policy, according to the report.
Protocol revenue links to token value are back in view
Mechanisms that connect protocol revenue with token value are also drawing attention. Over the past 30 days, Uniswap generated about $7.18 million in revenue, with PancakeSwap, Jupiter, Aave, and Aerodrome following behind.
Several protocols have already put in place models that tie revenue to token economics. Hyperliquid uses part of its trading fees to buy HYPE. Uniswap links revenue to UNI burns. Jupiter directs 50% of protocol fees to buying JUP.
Ethena has also proposed that once USDe reaches a preset supply threshold, 95% of net revenue from its three core business lines would be used for ENA buybacks.
The item cited CryptoPotato and was compiled by Techub.
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