  As of August 2022, blockchain-based assets boast a combined market
capitalisation exceeding one trillion USD, among which the most prominent are
the decentralised autonomous organisation (DAO) tokens associated with
decentralised finance (DeFi) protocols. In this work, we seek to value DeFi
tokens using the canonical multiples and Discount Cash Flow (DCF) approaches.
We examine a subset of DeFi services including decentralised exchanges (DEXs),
protocol for loanable funds (PLFs), and yield aggregators. We apply the same
analysis to some publicly traded firms and compare them with DeFi tokens of the
analogous category. Interestingly, despite the crypto bear market lasting for
more than one year as of August 2022, both approaches evidence overvaluation in
DeFi.
