Post #3110

$SKY is undervalued or $HYPE is overvalued? Hyperliquid generated ~2x the revenue of Sky over the past 12 months. But the difference in Valuation is around 20x Sounds irrational? It’s not. Because, HYPE captures value. SKY redistributes it. HYPE keeps nearly 100% of its trading fees within the protocol. That capital is then used for buybacks, directly benefiting the token. SKY, on the other hand, generates revenue from fees and DAI lending but around 70-75% of that gets paid out to users as yield and incentives. Which means less value is retained and more is leaked out. Also trading revenue is scalable, Volume driven, and tends to stay within the protocol. Lending yield compresses over time and is highly cyclical. Value capture beats value distribution.Simple.