Review: A Short Survey on Business Models of DeFi Protocols.

A short survey of the business model of decentralized platforms.

1. Lender Borrower wToken (IOU) Profit from Interest Collateral PROTOCOLS FOR LOANABLE FUNDS : BUSINESS MODEL Smart Contract PLF Treasury % interest Lending Asset A Short Survey on Business Models of Decentralized Finance (DeFi) Protocols By Teng Andrea Xu and Jiahua Xu Follow us here: WWW.REALLYGREATSITE.COM Revenue Source: interest and fees from borrowers Loaned Asset Payback + fees Collateral 1 2 3 4 5 6 ?5 Keeper At the liquidation threshold, the collateral is bought at a discount by liquidators DEFINITIONS: Wrapped tokens are used to represent ownership. They are a way to use cryptocurrencies such as Bitcoin or Dogecoin on blockchains other than the blockchain they were originally built on. SCRF Summary: Tomide Adeoye

2. Liquidity Provider Buyer LP Tokens Interest DECENTRALIZED EXCHANGES: BUSINESS MODEL DEX Treasury % interest A Short Survey on Business Models of Decentralized Finance (DeFi) Protocols By Teng Andrea Xu and Jiahua Xu Fees paid by buyers are split proportionally between liquidity providers, and a percentage goes to the protocol’s treasury Fees Swapped Assets Deposited Assets Smart Contract/ Liquidity Pool DEFINITIONS: Liquidity provider tokens or LP tokens are tokens issued to liquidity providers on a decentralized exchange (DEX) that run on an automated market maker (AMM) protocol. Uniswap, Sushi and PancakeSwap are some examples of popular DEXs that distribute LP tokens to their liquidity providers. CoinMarketCap Alexandria. 2022. Liquidity Provider Tokens (LP Tokens) | CoinMarketCap. [online] Available at: <https://coinmarketcap.com/alexandria/glossary/liquidity-provider-tokens-lp-tokens> [Accessed 31 July 2022]. SCRF Summary: Tomide Adeoye 1 2 4 3 3 4

3. Investor Yield YIELD AGGREGATORS: BUSINESS MODEL A Short Survey on Business Models of Decentralized Finance (DeFi) Protocols By Teng Andrea Xu and Jiahua Xu % fee Invest Locked Assets Aggregator Treasury Smart Contract/ Vault Staking Lending Liquidity Provision SCRF Summary: Tomide Adeoye The protocol earns commission fees from the strategy’s profit.

4. DEFI ABSTRACTED BUSINESS MODEL: DeFi common mechanism and revenue strategy. A Short Survey on Business Models of Decentralized Finance (DeFi) Protocols By Teng Andrea Xu and Jiahua Xu Investor User Yields DEFI’s Treasury % interest Uses Commits Financial Service SCRF Summary: Tomide Adeoye 1 4 2 3 5 Locked Assets Pays Locks DEFI PROTOCOL SMART CONTRACT INVESTOR USER FINANCIAL SERVICE PLFs Lending Pool Lender Borrower Loan DEXs Liquidity Pool Liquidity Provider Buyer/Trader Exchange Yield Aggregators Vault Vault User   Asset Management DEFI NAMING TAXONOMY

5. DEFI BUSINESS MODELS Protocols for Loanable Funds (PLF) Decentralized Exchange (DEX) Yield Aggregator Service: loan Actors: lender and borrower Smart Contract: lending pool Revenue Source: interest paid by borrowers Service: exchange Actors: liquidity provider and buyer Smart Contract: liquidity pool Revenue Source: swap fees paid by buyers Service: asset management Actor: vault user Smart Contract: vault Revenue Source: profit from performance

6. Designed by: M: [phone] E: [email protected] LinkedIn | GitHub | Website Medium | Twitter MERISLABS M: [phone] E: [email protected] LinkedIn | GitHub | Website Youtube merislabs .com TOMIDE ADEOYE