Crypto revenue isn't as straightforward as it seems. Cost structure is just as important because that's what reveals the actual health of the business. For Perp Dexs, market maker rebates are a key variable most people ignore. These aren't operating expenses like salaries or server costs but direct deductions from the topline, meaning this money never touches the protocol's balance sheet. Protocol A generates $40M in gross revenue with 0% rebates. That's $40M available for reinvestment, buybacks, product development, and surviving market conditions. Protocol B generates the same $40M in gross revenue but with 50% rebates. That leaves just $20M available for all of the above. Both protocols report the same "revenue" figure, but one has double the resources to compound and grow. Protocols that rely heavily on rebates to attract liquidity face ongoing margin pressure as that capital tends to flow toward the best available rates.(Delphi Digital)