The decentralized finance (DeFi) ecosystem has matured from a speculative experiment into a robust financial infrastructure. After years of liquidity mining, protocol bootstrapping, and competitive positioning, several leading protocols are now entering a new era—one defined by sustainable profitability and economic resilience. This shift marks a pivotal moment in DeFi’s evolution, where value creation is no longer measured solely by total value locked (TVL), but by real revenue generation, cost optimization, and token-based value accrual.
In this deep dive, we explore the financial transformation of four major DeFi protocols: Aave, Sky (formerly MakerDAO), Lido, and ether.fi. We analyze their revenue models, operational efficiency, and strategic innovations that position them at the forefront of DeFi’s next growth phase.
The Shift Toward Sustainable Profitability
For much of DeFi’s early history, protocols prioritized user acquisition over profit. Incentives ruled the day—liquidity mining rewards, yield farming campaigns, and token emissions fueled growth but often masked underlying economic fragility. Today, the landscape is changing.
With improved on-chain analytics platforms like Dune, DefiLlama, and TokenTerminal, financial transparency in DeFi has significantly increased. Projects are now held to higher standards of fiscal responsibility. Users and investors alike demand clarity on net income, operating costs, and long-term sustainability.
This report leverages chain data, governance discussions, and financial modeling to assess how these protocols generate revenue, manage expenses, and distribute value to stakeholders.
👉 Discover how top DeFi protocols are turning profits in 2025
Core Protocols in Focus
Aave: From Lending Giant to Profit-Driven Innovator
Aave stands as one of the most influential lending protocols in DeFi. As a non-custodial liquidity market, it enables users to supply assets for yield, borrow against collateral, or act as liquidators during undercollateralized events.
The protocol earns revenue through:
- Interest spreads on loans (10% goes to Aave DAO)
- Liquidation penalties (10% allocated to treasury)
- GHO, its native overcollateralized stablecoin
GHO represents a strategic leap forward. By issuing its own stablecoin, Aave reduces reliance on third-party stablecoins like DAI or USDC. This vertical integration allows Aave to capture 100% of the borrowing interest on GHO loans—boosting margins significantly.
As of September 2024:
- Active loans exceed $6 billion
- ETH dominates borrowing activity with over $2.7 billion in outstanding debt
- GHO supply reaches $141 million—still just 2.35% of total loan volume
Despite a current net profit margin of 16.31%, Aave is poised for expansion. The introduction of GHO, combined with improved security modules and reduced incentive spending, positions Aave for sustained profitability. Analysts project annual net income could reach $89 million under favorable market conditions.
Aave’s native token, AAVE, has a fully diluted valuation (FDV) of $2.7 billion—approximately 103x its projected earnings. While high, this multiple may compress as the protocol executes planned upgrades to its tokenomics, including potential buybacks and more efficient staking mechanisms.
Sky (MakerDAO): The Sustainable Stablecoin Powerhouse
Sky, formerly known as MakerDAO, powers DAI—one of the most widely used decentralized stablecoins. Backed by a diversified basket of collateral including cryptocurrencies and real-world assets (RWAs) like U.S. Treasuries, Sky generates revenue through:
- Stability fees (interest paid by borrowers)
- Yield from RWA investments
- Liquidation penalties
What sets Sky apart is its low-cost distribution model. Unlike newer protocols needing massive liquidity incentives, DAI is deeply embedded across centralized exchanges (CEXs) and DeFi platforms—giving Sky a self-reinforcing network effect.
Key metrics as of 2024:
- Projected net protocol income: $88.4 million
- MKR token FDV: $1.6 billion (~18x earnings)
- Over 11% of MKR supply already repurchased and burned via the Smart Burn Engine
Sky’s focus on sustainability has paid off. By allocating surplus revenue to buy back and burn MKR tokens, the protocol enhances scarcity and rewards long-term holders. This mechanism mirrors traditional equity buybacks—offering a compelling model for value accrual in decentralized systems.
Lido: Dominant but Still Unprofitable
Lido remains the largest liquid staking provider on Ethereum, with over 9.67 million ETH staked—representing roughly 8% of all ETH in existence. Its liquid staking token (LST), stETH, dominates DeFi usage due to deep liquidity and broad integration.
However, despite its scale, Lido is not yet profitable.
Revenue flows are split:
- 90% to stakers
- 5% to node operators
- 5% to Lido DAO
With an FDV exceeding $1 billion for LDO, profitability becomes critical. Currently, even optimistic projections suggest only around $7 million in net income after costs—far below what’s needed to justify valuation.
Two paths exist for improvement:
- Increase ETH staking rate: Currently at 28.3%, Ethereum’s staking penetration lags behind chains like Solana (65.5%) and Sui (79.5%). Doubling staked ETH could generate an additional $50+ million in net income.
- Expand beyond Ethereum: Multi-chain expansion offers growth potential but faces technical and governance hurdles.
While Lido enjoys strong network effects, social consensus around centralization risks has capped its growth momentum. For true economic viability, Lido must either expand revenue streams or aggressively cut costs.
ether.fi: The Rising Star of Restaking
ether.fi has emerged as the leader in liquid restaking, combining ETH staking with EigenLayer-based economic security provisioning. With $6.5 billion in TVL across restaking and yield products, ether.fi is rapidly scaling.
Its dual-income model includes:
- ETH staking yield (5% to DAO)
- EigenLayer restaking rewards (10% to DAO)
Additional revenue drivers:
- Liquid: A suite of automated yield strategies charging 1–2% management fees
- Cash: A debit/credit card allowing users to spend restaked ETH in real life
Financial outlook (conservative estimates):
- 2024 protocol income from EIGEN incentives: ~$38.6 million
- 2025 projected: ~$54.4 million
- Eigenlayer AVS rewards: $35–45 million annually
Unlike Lido, ether.fi benefits from earlier-mover advantage in restaking and a broader product stack. Its ETHFI token has an FDV of $1.34 billion—comparable to LDO—but with stronger near-term profit potential.
Importantly, ether.fi is exploring using 25–50% of Restaking & Liquid revenues for ETHFI buybacks—a move that could accelerate value accrual if implemented.
👉 See how restaking is unlocking new income streams in DeFi
Token Value Accrual: Where Profits Flow
Profitability means little without effective value distribution. Different protocols adopt distinct models:
| Model | Pros | Cons |
|---|---|---|
| Stablecoin/ETH dividends | Direct returns | Taxable events |
| Token buybacks | Tax-efficient | Slippage risk |
| Buybacks + burns | Increases scarcity | No treasury growth |
| Treasury accumulation | Strategic flexibility | No direct holder benefit |
Aave and ether.fi are actively refining their tokenomics to enhance value accrual—whether through improved staking mechanics or buyback programs.
Frequently Asked Questions
Q: Which DeFi protocol is currently the most profitable?
A: Sky (MakerDAO) leads in net income with ~$88 million projected for 2024, followed closely by Aave.
Q: Why isn’t Lido profitable despite its large TVL?
A: Lido distributes 95% of staking rewards to users and spends heavily on incentives. Its low take rate (5%) makes profitability challenging without scale-driven cost reductions.
Q: How does GHO improve Aave’s margins?
A: GHO eliminates third-party stablecoin dependency, allowing Aave to capture full lending interest while reducing counterparty risk.
Q: What gives ether.fi an edge over Lido?
A: ether.fi offers higher-yielding auxiliary products (e.g., Liquid, Cash) and captures more revenue from restaking via EigenLayer integrations.
Q: Can DeFi protocols sustain profitability without token emissions?
A: Yes—protocols like Sky show that real yield from diversified collateral and efficient operations can support long-term economics without inflationary rewards.
Q: Are buybacks a sustainable way to return value in DeFi?
A: When funded by real revenue—not token emissions—buybacks offer a tax-efficient method to reward holders and increase scarcity.
The Road Ahead
DeFi is transitioning from growth-at-all-costs to profitability-first thinking. Aave’s GHO rollout, Sky’s RWA strategy, Lido’s scaling challenges, and ether.fi’s product-led innovation reflect different stages of this maturation cycle.
For users and investors, the message is clear: economic fundamentals matter. Protocols that generate real revenue, control costs, and return value to stakeholders will lead the next wave of adoption.
As EigenLayer expands and restaking gains traction, we expect further consolidation among winners—and淘汰 for those unable to achieve sustainable economics.
👉 Stay ahead with insights into the future of decentralized finance