Understanding the RealYield Concept and Related Projects in One Article
Recently, the Arbitrum ecosystem DEX GMX has been gaining momentum. As one of the projects that generate real yield, the concept of Real Yield has become very popular and is the latest trend in DeFi.Original Author: Denis Balitskiy
Original Compilation: 0x214, BlockBeats
Recently, the Arbitrum ecosystem DEX GMX has gained strong momentum. On September 5, the price of GMX Token broke through $56, an increase of over 30% from its low in August. At the end of August, according to Nansen data, the number of trades on GMX briefly surpassed that of Uniswap, making it the protocol with the highest number of trades on the Arbitrum network within the week. As one of the projects generating "Real Yield," this concept has sparked heated discussions in the market—Real Yield has become the latest trend in DeFi.
Crypto researcher Denis Balitskiy listed 10 projects that generate real yield and their value propositions, as follows:
What is Real Yield?
First, we need to clarify the definition of "Real Yield."
Essentially, Real Yield refers to protocols paying users returns based on their actual income (generally denominated in ETH, USDC, etc.), which eliminates the negative impact of inflation, price manipulation, and many other disreputable operations on currency value.
Moreover, in a bear market, the term "real yield" appears particularly powerful.
Let’s take a sneak peek.
Kujira
Kujira has risen from the ashes of the Terra collapse, and now, Kujira has launched a Layer 1 platform based on the Cosmos ecosystem, accompanied by an ambitious slogan: "Grown-Up DeFi."
The Kujira team provides users with a variety of services:
- Over-collateralized Stablecoin USK
- On-chain order book DEX FIN
- Liquidation market ORCA
- Staking and yield app BLUE
More protocols will be integrated into the Kujira ecosystem in the future.
Sources of protocol income: Kujira network, withdrawal and trading fees, ORCA liquidations, etc.
Clearpool
Clearpool allows projects to borrow funds from a decentralized network of lenders without any collateral.
This functionality is made possible through advanced risk management, consisting of its "Single-Borrower Pools" and tokenized credit system. But that’s not the most attractive part.
Lenders can also earn additional rewards paid in CPOOL.
In fact, you can directly stake these CPOOL and delegate the voting rights obtained to the Clearpool Oracles.
These oracles not only track the dynamic performance of each pool but also share token rewards with you.
A.K.A. solid yield.
Dopex
This trading platform utilizes liquidity pools to allow users to buy or sell options in a capital-efficient manner.
Options are a financial instrument that gives you the right to bet or speculate on the price movement of an asset at a specific price.
The real strength of Dopex lies here:
Dopex has launched "Single Staking Option Vaults," which allow users to lock tokens for a specified period and earn passive income generated from this.
Dopex's income sources also include: liquidity pool purchases, token swaps, volume pool penalties, etc.
Note: The volume pool aims to increase trading volume within the Dopex protocol, allowing users to deposit funds before each weekly Global Epoch and use the pooled funds to purchase options at a discount for arbitrage. At the end of each Epoch, depositors can withdraw funds from the volume pool and pay a 1% penalty because they did not actually "use" the funds (non-usage of funds).
Thus, this is also genuine Real Yield.
Redacted
Redacted is a smart contract ecosystem that empowers DeFi protocols.
Many people find that Redacted's interface is quite well done.
This dApp itself allows users to earn rewards and participate in governance proposal voting.
Additionally, there are two noteworthy products.
- Hidden Hand (a trading market for governance incentives "bribes" aimed at increasing user governance participation)
- Pirex (automating compounding and tokenization of future yields/voting events)
To profit from Redacted's protocol income, users can lock their tokens for about 16 weeks, after which they can enjoy a share of the income from Pirex, Hidden Hand, and the treasury.
GMX
GMX is a perpetual contract trading platform that supports mainstream cryptocurrency trading and offers users leverage options of up to 30 times.
GMX adopts a "dual token model." GMX is its primary utility and governance token, allowing users to stake GMX to receive 30% of platform fees; GLP is the liquidity provider token, and GLP holders receive 70% of platform fees.
CAP
Similar to GMX, CAP allows users to trade with 50 times leverage.
Users can deposit ETH or USDC into the pool, and these funds will be paid to traders as potential profits; conversely, if traders incur losses or are liquidated, users will also receive a portion of the profits based on their share in the pool.
Additionally, staking CAP can also earn a share of its protocol income.
Simple and straightforward. Next.
Umami
This protocol allows users to access vaults that generate risk-hedged yields.
This risk hedging is achieved by providing liquidity to GMX's leveraged perpetual trading platform and Tracer's derivatives platform.
Returns will be paid in WETH, and the UMAMI token has a supply cap and a zero-emission policy.
Ribbon Finance
Similar to the aforementioned projects, Ribbon Finance allows users to earn yields through option vaults.
You can choose different strategies, such as Covered Call, Put-Selling, and Principal Protected, among others.
However, recent bearish market sentiment has led to a decline in both its TVL and returns.
Synthetix
Synthetix is well-known; this protocol allows users to create and trade synthetic assets (which can be pegged to anything, including real-world assets).
Synthetix's TVL reaches an astonishing $314 million.
Therefore, once you choose to stake tokens, enjoying a share of the protocol income is almost a certainty.
Beefy
Beefy is a yield optimizer that allows users to employ various investment strategies for compounding.
Beefy maximizes various LP rewards across multiple AMMs.
Additionally, holding tokens not only allows you to share in the protocol income but also grants you corresponding governance rights.
