<\/p>\n
Crypto veteran Arthur Hayes says he looks for two main features when considering what digital asset protocols to invest in.<\/p>\n
The BitMEX founder notes in a new interview<\/a> with The Rollup that he specifically looks for protocols that have a track record of users spending their own money for the project\u2019s services.<\/p>\n \u201cThey\u2019re not spending token emissions, they\u2019re spending their own stables or other crypto to use as a product or service.\u201d\u00a0<\/em><\/p>\n In terms of a good example of that, Hayes cites Hyperliquid (HYPE<\/a>), a layer-1 protocol with a decentralized exchange (DEX) that has witnessed significant user and volume growth in its less than two years of existence.<\/p>\n The crypto veteran also says he looks for protocols that provide ways to enrich their token holders.<\/p>\n \u201cI want to see how I\u2019m getting paid. Is it a token buyback, is it an emission, what\u2019s the scheme? There are all different flavors depending on how you want to incentivize behavior, but at the end of the day, I buy a token, I want some sort of APY, and then I can take that APY and run some sort of financial analysis.\u201d\u00a0<\/em><\/p>\n He criticizes the decentralized exchange (DEX) Uniswap (UNI<\/a>), which he says is an expertly created protocol that doesn\u2019t do anything to reward its users.<\/p>\n