How should investors value DeFi projects? A new paper might have some answers By Cointelegraph


How ought to buyers worth DeFi initiatives? A brand new paper may need some solutions

A brand new paper launched on Thursday from a staff of crypto researchers hopes so as to add to a physique of labor that may finally establish “the Black-Scholes of decentralized finance (DeFi)” — an equation that may enable buyers and customers to correctly worth DeFi initiatives and potential revenue/loss metrics in fashionable DeFi verticals equivalent to liquidity mining.

Why is such an equation vital? At first blush, liquidity mining is straightforward sufficient to clarify: in trade for offering liquidity to automated market makers like Uniswap, customers are rewarded with buying and selling charges or governance tokens, typically denominated in APY percentages.