Wednesday, August 4, 2021

‘Sidequests,’ sponsorships and e-sports as DeFi protocols ponder user acquisition

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One of the vital intractable issues in decentralized finance (DeFi) could also be going through a ecosystemwide effort as a rising variety of protocols are starting to get inventive with their promoting and outreach efforts.

Automated market maker Uniswap introduced on Tuesday a collaboration with esports group Staff Secret. Funded by the Uniswap Grants Program, Uniswap will become an official sponsor of the staff in trade for $112,500. In an announcement weblog put up, Staff Secret mentioned that it will likely be “creating unique content material and esports activations” for the Uniswap neighborhood, in addition to serving to Uniswap attain a brand new consumer base.

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“The primary time in historical past a DAO sponsors an esports staff? Will not be the final,” reads an outline of the expense on Uniswap’s grants web page. 

Uniswap isn’t the one undertaking in search of unconventional methods to stimulate development. Earlier on Tuesday, DeFi monitoring and administration platform Zapper unveiled a “quest” reward system for customers to check out numerous options. The present each day quest is to open the web site, whereas weekly quests concentrate on including/eradicating liquidity from protocols and making asset swaps. Finishing the quests grants customers expertise, which may ultimately be used to “degree up” and earn nonfungible tokens (NFTs).

“The aim is to make DeFi extra accessible. Historically, finance has all the time been considered one thing dreadfully boring,” mentioned Zapper founder Seb Audet. He continued:

“Most individuals have wired themselves to imagine that it’s too difficult and never essentially the most thrilling factor. We need to flip that script. By having one thing extra enjoyable, we’re additionally making it extra accessible.”

The system is paying homage to Rabbithole, a startup designed to incentivize deep participation with DeFi protocols. In late 2020, the whole variety of addresses that had interacted with a DeFi protocol cracked 1 million, however Rabbithole founder Brian Flynn cautioned against interpreting the figure as a sign of a rapidly growing user base.

“The fact is that the variety of distinctive customers is barely 10-15% of that. That is the true metric that issues,” Flynn informed Cointelegraph.

The initiatives from Uniswap and Zapper show that tasks are happening the offensive to seek out customers, nonetheless. Protocols like Uniswap, specifically, have huge token treasuries that may be deployed, in addition to a neighborhood of decentralized autonomous group (DAO) members who can advocate initiatives — one failed proposal on Uniswap’s governance boards was to buy a Tremendous Bowl advert.

Whereas primetime promoting spots could also be a methods away, a number of tasks are wanting into smaller sponsorships and focused placement. DeFi-focused publication The Defiant lately revealed an Aave background takeover, and Uniswap is a sponsor of the Bankless DeFi podcast.

It is all a part of a broader effort to make DeFi extra accessible, comprehensible and welcoming. 

“DeFi has struggled, as a result of there may be a lot friction on the entry. There’s quite a lot of DeFi jargon + it’s important to be taught all of the web3 fundamentals (connecting a pockets, gasoline, cancelling transactions, and many others…),” mentioned Audet. “We need to assist with that by making it extra enjoyable, proactive. Studying should not be this difficult.”