Research Summary

The report examines the top tokens in the respective categories by Total Value Locked (TVL). It analyzes their Year-To-Date (YTD) performance in 2023 and the impact, if any, of tokenomics on a project. The report covers Ethereum-based coins selected based on high TVL and discusses the performance of these coins.

Actionable Insights

  • Understanding Tokenomics: The report provides insights into the tokenomics of top DeFi protocols. It is crucial to understand these tokenomics as they can significantly impact a project’s success and the value of its tokens.
  • Value of Governance Tokens: DeFi tokens have often been criticized as ‘valueless governance tokens’ for their lack of fundamental value or utility. However, the expectation of future use cases such as a fee switch (i.e., Uniswap) helps major governance tokens sustain large valuations.
  • Value Capture Mechanisms: Some tokens have incorporated various value capture mechanisms whose efficacy is controversial. This report looks at governance, ve, and buyback models, providing insights into these mechanisms and their effectiveness.

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