A New Way for DeFi Protocols to Make Money

Decentralized finance (DeFi) has a problem: many protocols struggle to generate real revenue. You can build a great product, launch a token, and even get tons of users—but your revenue might still be zero. A recent thread by Eduardo (@emaverick90) highlights how Hyperliquid, a decentralized exchange, might have found a solution. Their model lets protocols earn trading fees directly from their token’s trading volume, and it’s a potential game-changer for DeFi profitability.

The Old DeFi Revenue Problem

In traditional DeFi, most protocols don’t make money from their token’s success. When a token trades on decentralized exchanges (DEXs) like Uniswap or Curve, the trading fees go to liquidity providers (LPs)—not the team that created the token. Eduardo points out that this leaves many DeFi projects relying on shaky revenue strategies, like:

• Token emissions: Printing more tokens to incentivize users, often leading to inflation.
• Speculative pumps: Hoping token prices rise to indirectly fund the project.
• Governance tokens: Tokens that promise future value but lack real cash flow.

This creates a disconnect. Even if your token has high trading volume or price appreciation, your protocol might still be broke. Hyperliquid’s model flips this on its head.

How Hyperliquid’s Trading Fee Model Works

Hyperliquid introduces a simple but powerful idea: if your token trades on their platform, you—the protocol—earn the fees. Here’s how it breaks down:

1. A protocol lists its token on Hyperliquid.
2. Traders buy and sell the token, generating trading fees.
3. Those fees go directly to the protocol, not to market makers or LPs.

This means protocols can earn recurring revenue just by having a token that people want to trade. It doesn’t matter if it’s a stablecoin, a staking token, or even a utility token—as long as there’s trading volume, the protocol makes money. Eduardo calls this a “massive shift in incentives,” and it’s easy to see why. For the first time, DeFi projects can tie their revenue directly to usage, not speculation.

Why This Matters for DeFi

This model could redefine how DeFi protocols approach monetization. Until now, sustainable revenue in DeFi was limited to a few types of projects, like lending platforms or those capturing niche fees (e.g., from liquidations or MEV). Hyperliquid opens a new path: launch a token, drive trading volume through real demand, and earn fees directly. Here’s what this unlocks:

• Non-speculative tokens: Stablecoins, utility tokens, and collateral wrappers can now generate revenue without relying on price pumps.
• Simpler business models: Protocols don’t need complex value accrual mechanisms—just real demand for their token.
• Aligned incentives: The more users interact with your system, the more you earn, encouraging projects to focus on utility.

Eduardo also highlights a key mindset shift: success in DeFi could move away from “how high did the token price go?” to “is there sustained demand for this token?” Hyperliquid’s model makes product-market fit measurable through cash flow, not vanity metrics like total value locked (TVL).

The Numbers Behind Hyperliquid

Hyperliquid isn’t just a theoretical idea—it’s already showing impressive traction. According to DefiLlama, Hyperliquid has processed over $1.311 trillion in all-time trading volume as of April 2025. More importantly, its daily revenue is $513,867, with a cumulative $301.33 million earned historically. These numbers suggest that Hyperliquid’s model is scalable and could support a wide range of DeFi projects looking to monetize their tokens.

Challenges and Open Questions

The model isn’t without questions. For example, a reply from @DonkRaider asks who plays the role of market makers on Hyperliquid and how they’re rewarded if the protocol takes the fees. Eduardo responds that many market makers are already active on Hyperliquid, drawn by its growing popularity among traders. Unlike DEXs, protocols on Hyperliquid don’t need to provide their own liquidity to earn fees, which lowers the barrier to entry.

Another reply from @VictorLeeJW asks for more details on implementation. Eduardo shares a link where users can buy tokens and create trading pairs, showing that Hyperliquid is already operational for token listings.

A Cleaner Future for DeFi Tokenomics

One of the most exciting aspects of Hyperliquid’s model is how it reduces the need for “ponzinomics”—those unsustainable token emission schemes that often plague DeFi. As Eduardo notes, this model lets projects focus on building real infrastructure. If people trade your token, you win. No artificial yield farming or mercenary liquidity needed.

This could also shift the broader DeFi landscape. @petitfilo comments that they’re “amazed by the time it’s taking the market to understand” Hyperliquid’s potential, to which Eduardo replies, “it will be slowly then suddenly.” If more protocols adopt this model, we might see a wave of DeFi projects that prioritize utility over hype, leading to healthier ecosystems overall.

What’s Next for Hyperliquid and DeFi?

Hyperliquid’s trading fee model is still early, but it’s a compelling hypothesis: what if trading volume could directly fund protocol development without relying on emissions or external dependencies? For DeFi builders, the question Eduardo poses is clear: why launch a token on a DEX where you earn nothing when you could launch on Hyperliquid and capture the upside?

This thread has sparked a lot of interest, with users like @ShareLockEdz7 and @CatCabal_hl praising its insights. @CatCabal_hl even shared a striking illustration with the caption “The Sigil of Revenue is real,” hinting at the symbolic importance of this shift. As Hyperliquid grows, it could take market share from both centralized exchanges (CEXs) and DEXs, as @VictorLeeJW predicts.

If you’re a DeFi builder or enthusiast, Hyperliquid’s model is worth watching. It might not be the solution to DeFi’s profitability problem—but it’s one of the most promising ideas in a long time.