<p>You are indeed right. I have seen plenty of DeFi projects get their funds by offering a 2017-style ICO model. YaySwap (not an endorsement, just an example) is one of these projects that takes ADA and plans to distribute their YAY token.</p>
<p>Uniswap also takes a fee. Then there's the genesis allocation to team, investors etc.</p>

CC BY-SA 4.0
2021-05-17T05:47:38.790Z
2021-05-17T05:47:38.790Z
Matthias Sieber
<p>How do DeFi projects such as Uniswap or Synthetix make money to cover their development costs? Would you siphon a small amount of ADA each transaction or is it more common to create your own token and follow an ICO-style model?</p>

<defi>
How are DeFi projects funded (beyond Project Catalyst & external funds)
# How are DeFi projects funded (beyond Project Catalyst & external funds)

(Asked by: username_0 on 2021-05-16)

How do DeFi projects such as Uniswap or Synthetix make money to cover their development costs? Would you siphon a small amount of ADA each transaction or is it more common to create your own token and follow an ICO-style model?

**Tags:** defi

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## 1 answers

### Answer by username_1 on 2021-05-17. Score: 1 | Accepted answer

You are indeed right. I have seen plenty of DeFi projects get their funds by offering a 2017-style ICO model. YaySwap (not an endorsement, just an example) is one of these projects that takes ADA and plans to distribute their YAY token.

Uniswap also takes a fee. Then there's the genesis allocation to team, investors etc.


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