/biz/ - Business & Finance

I make $55 in five hours staking Premia.

I'd put it all into Premia and stake it for a comfy passive income.

>>52637842
APR is based on volume and therefore protocol fees. You can't compare futures volume to options volume they are completely different, what matters are fees paid by traders. You can use volume and protocol fees, and hence APR, to determine how valuable a protocol is. High APR implies that it is undervalued, low APR implies that it is overvalued.

>GNS might 2.5x from here but I doubt it does more than that
Why, because then it would be at GMX's marketcap? Stop thinking in terms of marketcap and start thinking in terms of how profitable a protocol is. This is what separates fee accruing tokens such as the ones that we are discussing and worthless governance tokens that provide nothing to holders and which therefore bleed towards their true value of zero accordingly.

Premia isn't undervalued because it's down X% from ATH, it's undervalued because the revenue that the protocol generates is too great for the current market value of the protocol. It's also undervalued because the market has yet to price the upcoming protocol upgrade and all of this is made apparent by the APR, I'm not just making this up. You don't have to stake if you don't want to, but you can be sure that others will and price will accordingly appreciate until a fair valuation is reached.