About Onchain Economics
A library of foundational concepts for understanding how the onchain economy works.
What we cover
Onchain Economics publishes clear, practical explanations of protocol economics, metrics, yield analysis, valuation frameworks, and investment theses. Our content focuses on the intersection between onchain finance, fundamental analysis, and economic reasoning.
The site currently includes 66 guides across 5 topic areas:
- Protocol Economics: Incentives, mechanism design, and token models that shape protocol behavior over time.
- Metrics: Practical, decision-useful metrics for onchain businesses and protocols.
- Yield: Where yield comes from, how it’s sustained, and how to compare opportunities.
- Valuation: Frameworks for valuing tokens and protocols using cashflows, risk, and comparables.
- Thesis: Clear theses about markets, primitives, and why onchain systems might win.
Interactive tools
Beyond guides, we provide interactive tools to help analyze DeFi opportunities:
- Calculators for APR/APY conversion, impermanent loss estimation, ROI analysis, lending health factors, DCA simulations, and market cap comparisons
- Dashboards comparing DeFi metrics against traditional finance benchmarks like M2 money supply, bank deposits, and treasury yields
- Glossary of key DeFi and onchain economics terms with concise definitions and links to deeper guides
Our approach
Every guide aims to be decision-useful. We focus on practical frameworks you can apply immediately, not abstract theory. Where possible, we link to live data sources so you can verify concepts against real protocols.
Key principles:
- Clarity over complexity: Explain concepts in plain language before introducing technical details
- Practical application: Include examples, calculations, and links to real data
- Honest about limitations: Acknowledge when metrics are imperfect or when conventional wisdom is wrong
- Connected knowledge: Link related concepts so readers can build comprehensive understanding
How to use this site
New to onchain economics? Start with Protocol Economics Primitives for a mental model, then explore TVL Explained and Protocol Revenue.
Evaluating a protocol? Check our metrics guides on fees vs revenue vs profit, real yield, and the sustainable yield checklist.
Looking for specific calculations? Use our calculators for APY conversion, impermanent loss, and lending analysis with live data.
Stay updated
New guides and tools are added regularly. Subscribe to our RSS feed or check back periodically for new content.