How Does a DEX Generate Revenue beyond Transaction Fees? ⎊ Path

How Does a DEX Generate Revenue beyond Transaction Fees?

A DEX can generate revenue beyond transaction fees through several mechanisms, including interest earned on collateral in lending pools, fees from perpetual futures trading, or revenue from liquid staking services. Some DEXs also capture value from 'Maximum Extractable Value' (MEV) by integrating MEV relayers or offering services to searchers.

These additional streams contribute to the protocol's total revenue for valuation purposes.

How Do MEV-boost Auctions Attempt to Democratize Access to MEV?

How Do Brokerages Offering “Commission-Free” Options Trading Generate Revenue?

What Is ‘Contango’ and ‘Backwardation’ and How Do They Relate to Traditional Futures Vs. Perpetuals?

What Is Maximal Extractable Value (MEV) and How Does It Relate to Private Transaction Relays?

What Is a ‘MEV-Share’ Protocol and How Does It Redistribute MEV?

What Is JIT (Just-in-Time) Liquidity and How Is It a Form of MEV?

How Do Decentralized Exchanges (DEXs) Try to Prevent Sandwich Attacks at the Protocol Level?

How Does “Maximal Extractable Value” (MEV) Relate to Front-Running in DEX Transactions?

Glossar

Revenue Generation

Yield ⎊ Revenue generation within cryptocurrency, options trading, and financial derivatives centers on maximizing risk-adjusted returns from capital deployment, often leveraging algorithmic strategies and high-frequency execution.