The "Vampiric" Liquidity Dilemma of DeFi Protocols
After the release of Uniswap V4, liquidity mining rewards have once again triggered a cycle of “mining, withdrawing, and selling,” leading to an increase in TVL but a drop in token prices. Curve faces liquidation risks due to insufficient CRV staking rates, exposing the drawbacks of DeFi protocols' excessive reliance on token incentives. Emerging protocols are attempting a "no-token model," attracting long-term capital through transaction fee dividends, but market acceptance is yet to be validated.
SOL
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