Learn about the newly launched new feature RabbitHole Earn, and the community incentive plan under discussion.
Written by: LeftOfCenter
The booming DeFi liquidity mining has brought about a substantial increase in the scale of users and funds on the chain, and even started DeFi out of the circle, which to some extent proves the importance of incentives, especially in the high-return and high-risk encrypted financial industry. No matter how difficult the operation on the chain, the high friction cost, and the expensive gas fee, as long as the incentives are in place, those early DeFi users have a strong motivation to participate in these businesses.
Of course, for an ecosystem that wants long-term development, in addition to having enough willingness to invest a considerable amount of incentives to early users, more importantly, such incentive policies have long-term value, that is, incentives must be in line with the mid- to long-term ecological development. Indicator binding, which is also the key and core to determine whether a mining mechanism has long-term value and ultimately implement the currency price.
RabbitHole, an on-chain activity incentive platform, wants to do the same. It tries to use gamification thinking to decompose each decentralized application into multiple different game tasks, and guide users to interact with blockchain protocols and decentralized applications. Interaction to increase the understanding of the decentralized ecosystem and its applications. After completing the task, users can get XP tokens and token rewards provided by the project party.
However, compared with complex liquidity mining and income farming, RabbitHole focuses on rewards for basic DeFi functions. The amount of tokens rewarded is fixed and much smaller. The goal of this is to expand new DeFi users. Eventually achieve mass adoption of DeFi.
In the view of RabbitHole founder Brian Flynn, in the long run, finding the right and effective way to encourage users to participate in the elements of DeFi governance and infrastructure layer can maintain the sustainable development of the entire ecology.
What is RabbitHole?
In fact, RabbitHole is not a new project. As early as May of this year, RabbitHole officially released the beta version. The founder is Brian Flynn, the former product manager of Dapper Labs. Brian Flynn is a UX designer and is full of NFT He is also an avid “constructor” who has been obsessed with LEGO since childhood and has been studying how to create new value through token incentive mechanism construction.
According to the official description, RabbitHole aims to break each decentralized application into game tasks through gamification thinking, guide users to interact with blockchain protocols and decentralized applications, and increase understanding of the main functions of decentralized applications. After completing the task, the user can obtain the RabbitHole system token XP token and the token reward provided by the project party.
RabbitHole hopes to guide users to complete a series of on-chain operational tasks by introducing gamification thinking, and cultivate the habits of DeFi users. While completing tasks, it will bring value to the middleware on the chain.
RabbitHole’s predecessor was an achievement incentive system called Drip that Brian Flynn was responsible for during his tenure at Dapper Labs. By transforming complex on-chain operations into a single quantifiable task challenge, users can complete a challenge every time Unlock the corresponding scores, which can then be exchanged for tokens used in other use cases.
And this time RabbitHole launched a new function RabbitHole Earn , which can freely integrate different DeFi projects. The first integrated project is Matcha. Completing the operation on the Matcha platform will unlock the corresponding XP token rewards and complete all 3 Operation tasks can unlock ZRX tokens ( until you receive them ).
In other words, the new version not only rewards the operating behavior reward system token XP, but also adds native token rewards for the project party . Compared with the original XP token reward, the new project party’s native token reward can more effectively improve users’ motivation to participate. Especially for those projects that already have a certain consensus and market value, their tokens already have a stable market value, which means that tokens with stable value can be obtained by simply performing a series of simple operations.
At the same time, in the long run, as RabbitHole integrates more projects, it will bring long-term sustainable value to the open financial ecosystem, that is, through the gamification mechanism to cultivate on-chain operating habits, and effectively transform currency holders into real DeFi users. Value creation will eventually be reflected in the price of tokens, which means that XP tokens will become more and more valuable.
It can be said that such a mechanism and starting point are a win-win for both the project party who wants to participate and RabbitHole itself.
More integration and future development
RabbitHole’s first integration with Matcha has come to an end, and RabbitHole also plans to integrate more DeFi projects.
RabbitHole is actively expanding its integration with other DeFi communities. GnosisDAO and mStable are currently under discussion.
On December 2, Brian Flynn published a discussion proposal integrating the community on the mStable forum , hoping to attract more new users to perform related operations through the gamification mechanism, so as to popularize the key functions and governance mechanisms of mStable, and increase the market value of mAssets. Use of MTA.
RabbitHole can use mStable subgraphs to create challenge tasks, allowing users to understand the different functions of mStable, including minting, redemption, storage and revenue, and how the key parts of the agreement work. For each completion of a contract function interaction task, the user can get a small amount of MTA tokens or mAssets.
RabbitHole recommends to run the operation of minting mUSD for the first time, and then contribute it to SAVE.
Similarly, Brian Flynn also submitted a discussion GnosisDAO community , in this discussion, Brian Flynn stated suggestions inspired activities that due to Gnosis is a large and complex ecosystem, it can be based on three core products (Gnosis agreement, conditions Token and SAFE ) design operational behaviors to convert new users.
The activity mechanism is also very simple. For example, a specific number of GNO tokens can be distributed to the top x users who complete a specific task, and the specific number is determined by community voting. For example, the community can distribute 0.5% of the current total supply of tokens to the RabbitHole event, and each user can get 1/1000 of the tokens by participating in the event.
Brian Flynn also proposed to integrate Gnosis’s conditional token market to increase customer acquisition , for example, triggering a trading market based on the number of users who complete the operation. This will motivate the community to recommend Gnosis products to others and further decentralize the distribution of tokens.
In order to prevent fleece, RabbitHole integrates the social identity network BrightID , which will limit Sybil Attacks, that is, prevent one person from registering an account multiple times to receive rewards, and one identity can only participate in one operation.
RabbitHole’s suggestions on Gnosis have received a good response and have been recognized by community members, including ** Gnosis CTO Stefan George’s recognition . He replied, “ The gamification mechanism of introducing new users through the unlocking task challenge is very cool and willing to support Smaller attempt.**”
However, as one of the founders of a project, Stefan George obviously has more practical considerations and asked very practical questions, “For a project, what is the cost of acquiring customers for participating in these incentive activities? And the user’s behalf ? What is the currency retention rate ?” In other words, his main concern is, if the reward token is obtained, will the user immediately throw it away?
Brian Flynn replied that in order to motivate users to participate in the operation, the customer acquisition cost is usually equal to or slightly higher than the gas cost. After the integration of the streaming payment tools Superfluid and Sablier, the tokens will be distributed to participating users regularly within a certain period of time, so as to avoid the immediate dumping of the tokens.
In the test activity conducted with Aave in September this year, RabbitHole guided users to borrow and lend on Aave. However, the rewarded token was not Aave, but the packaged token aUSDC in the Aave system. Since holding the aUSDC, you can get a certain amount of money. Interest, so most people did not sell the token after acquiring it, but continued to hold it. This effectively prevented the sell-off and also meant that the token retention rate was high. This motivational event also achieved good results, gaining hundreds of new users for Aave.
Financing
Perhaps it is precisely because of the tangible user growth data provided by RabbitHole to Aave in the last cooperation that this product has gained the trust of Aave CEO, who has also become a personal investor in RabbitHole’s latest financing.
In fact, with this new revision and new feature release, there is a new round of financing .
On December 4, RabbitHole announced the completion of an undisclosed round of financing. This round of financing was led by Collab Currency. In addition to a series of venture funds such as Slow Ventures, Castle Island Ventures and freeCo, there are many other investors with big backgrounds. Individual investors involved, such as Synthetix founder Kain Warwick and Synthetix COO Jordan Momtazi, Aave CEO Stani Kulechov, Messari former product leader Wang Qiao (Qiao Wang), well-known blockchain blogger Tony Sheng, ConsenSys founder and chief Executive Officer Joseph Lubin, Volt Capital General Partner and Imran Khan, PoolTogether CEO Leighton Cusack and Accomplice Partner Ash Egan.
