Michael Egorov (마이클 이고로프), founder of DeFi protocol Curve Finance, said DeFi must build models that generate real revenue rather than relying on incentives from issuing tokens to sustain growth, Cointelegraph reported on Feb. 23.
“Revenue should come from real economic activity, not tokens,” Egorov said. “If tokens do not play a real role, it is better not to issue them.”
The industry says DeFi projects that drew capital by offering high annual yields during the 2020 “DeFi Summer” are being reassessed by the market over time. “Now news does not affect token prices,” Egorov said. “Users are reassessing risk.” Total value locked (TVL) in the DeFi market fell 38 percent in six months to $98 billion from $158 billion. That shows sustainable growth is difficult with token issuance alone, Cointelegraph said.
Egorov again stressed that generating real revenue is essential for DeFi sustainability. “In 2020 there was little interest in risk, but now investors see technical stability as important,” he said.
Chi-gyu Hwang
delight@d-today.co.kr