How Can a Perpetual Futures DEX Be Valued Using Protocol Revenue?
A perpetual futures DEX is valued similarly to a spot DEX, but its protocol revenue is derived primarily from trading fees, funding rates, and potentially liquidation fees. The DCF model discounts these projected cash flows.
A key difference is that a perpetual DEX's revenue is highly sensitive to market volatility and open interest, requiring careful projection of these factors.
Glossar
Revenue
Yield ⎊ Revenue within cryptocurrency, options trading, and financial derivatives represents the economic gain derived from deployed capital, factoring in both explicit payouts and implicit benefits like optionality value.
Perpetual Futures DEX
Architecture ⎊ Perpetual Futures DEXs represent a distinct evolution within decentralized exchange (DEX) design, specifically tailored for perpetual futures contracts.
Perpetual Futures
Contract ⎊ Perpetual futures represent a type of financial derivative contract, specifically within the cryptocurrency and options trading space, that replicates the payoff of a traditional futures contract without a fixed expiration date.
Protocol Revenue
Income ⎊ The revenue generated by the underlying decentralized protocol itself, often sourced from transaction fees, liquidation penalties, or interest accrual within the system that supports the derivatives market.