Curve’s Egorov Calls for Sustainable DeFi Yield

Curve Finance founder Michael Egorov stated that decentralized finance (DeFi) protocols can no longer sustain growth through inflationary token incentives and must instead generate real revenue to attract liquidity. He argued that yields should stem from revenues, not token emissions, contrasting the current environment with the speculative frenzy of "DeFi summer" 2020 when high APYs attracted capital regardless of risk. Egorov noted that users have since re-evaluated risks, causing DeFi's Total Value Locked (TVL) to drop significantly. He emphasized that tokens are now necessary for decentralization and governance, not for quick wealth accumulation, as speculative premiums have largely shifted to meme coins. For long-term viability, durable onchain businesses must compete based on revenue generation and capital efficiency rather than unsustainable headline yields.

(Source：Cointelegraph)