A well-known DEX protocol has drawn attention to the relationship between its market valuation and actual revenue after launching its trading fee switch functionality. According to analysis, the protocol's current fully diluted valuation (FDV) of $5.4 billion relative to annualized fee income of $23 million translates to a price-to-earnings ratio as high as 240x.

What does this valuation level signify? If calculated based on the current scale of annualized fees, considering operational cost pressures this year, the project faces potential losses of approximately $100 million. This reflects a current paradox in the DEX sector—the premium that the market assigns to liquidity protocols is significantly misaligned with their actual commercialized revenues.

From the perspective of trading fee mechanisms, launching the fee switch represents an important initiative by the project team to explore its business model. However, under high valuation multiples, investors need to consider: Can the protocol's actual profitability support such market value expectations? Where lies the growth potential for future fee income? These questions are critical for assessing the long-term value of this ecosystem.