HyperSwap announced yesterday that they will allocate 75% of their revenue to buy back and burn their token, giving holders direct exposure to the protocol (unlike Uniswap or most other DEXs). According to DefiLlama data, they’re generating around $2–2.5M in revenue per quarter, which translates to roughly $8–10M annualized revenue (let’s assume $8M). From those $8M, 75% will be used for buybacks and burns, resulting in approximately $6M in net yearly token purchases. The current HYPE P/E ratio is around 11.5 ($15B / $1.3B), so applying the same metric, the “fair” valuation of HyperSwap would be around $70M market cap. Of course, this should be taken with a grain of salt since: 1) Their revenues are declining and seems that they won't use most of their already generated revenue for the TGE 2) They may face stronger “vampiric” attacks from competing protocols 3) Their flywheel might fail to sustain itself (e.g., will buybacks outweigh incentives AKA points? Will those incentives be enough to attract liquidity?) 4) Seems like they're building a HIP-3 trading terminal that could increase the revenues and thus the buybacks In any case, I’m really happy to see the Hyperliquid ethos spreading among its native projects. Even though some are forks, they still strive to innovate and contribute positively to the community. Congrats @HyperSwapX, looking foward to the TGE.
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