Now's a great time to consider those long lost defi governance tokens. Prices are down across the board.
Governance tokens have taken enormous hits from all-time high as well as just fair value. You have to assess them.
There's a lot of trash out there and indeed completely worthless and not worth buying. I myself have some protocols that should be closed down but can't because it's defi.
So what tokens are good. I'll give you some examples, but there are two things to consider.
Inflation: does it continue to increase in circulating supply. Does the team have unlocks coming soon. Can the team mint more tokens?
Rev. Share: does the team have tvl and product market fit that is generating fees and revenue for the system? Does the project have a predictable way to pass those fees on to holders
Two tokens that I really like at this time are
$YFI of
@yearnfi
$BIFI of
@beefyfinance
Both these tokens have a fixed supply. Some have even burned their supply down. There's no inflation on either of them. They continue to attract users and tvl that generate fees. Those fees are predictably sent to token stakers. Check the aprs for yourself.
If you're willing to consider an inflationary token, you can look at the highest fee generating system in defi the amm. Some good examples are obvious
$CRV of
@CurveFinance
$aero of
@AerodromeFi
$velo of
@VelodromeFi
$ram of
@RamsesExchange
These tokens have a little more consideration as they are, like I said, inflating their supply constantly. However, they have a pretty good lockup rate which reduces inflation significantly. And they have very good systems of predictable fees to token stakers. However, getting out of them if these tokens do ever pump is significantly more difficult. Especially in aero/velodrome's case as you need to find a a person to buy your nft. Whereas with Ramses you can take that 50% haircut or more and sell immediately. Curve is impossible to get out of, unless you use a 3rd party locker.
Should you buy these tokens now? Should you wait one month? Should you never buy them? That's your decision. I'm just sharing with you the considerations that you should be making.
Don't buy a token simply because you think it's going to go up in value. Make sure it has APR from real yield.