📚 DeFi Day 28: Protocol Economics If a DeFi protocol makes money, where does that money actually go? 👀 Today, let’s understand how a DeFi protocol actually makes money. Simple flow: Users → Protocol → Fees → Revenue → Value How does it work? • Users interact with the protocol • Their activity generates fees • Fees create protocol revenue • Revenue can go to LPs, treasury, token holders, or other participants • Sustainable protocols need real usage and real revenue One important distinction: TVL ≠ Revenue A protocol can lock billions in assets but generate very little revenue. And: Revenue ≠ Token Value A protocol can make money, but that value doesn't automatically flow to its token. This is where we move from “using DeFi” → “understanding how DeFi businesses work.”