Cryptocurrency News

‘Sidequest’ as a DeFi protocol, considering sponsorship and e-sports user acquisition

One of the toughest problems DeFi may face is ecosystem-wide efforts as an increasing number of protocols start getting creative with their advertising and outreach efforts.

Automated market maker Uniswap today announced a tie-up with esports group Team Secret. Funded by the Uniswap Grants Program, Uniswap will become an official Sponsor of the team in exchange for $112,500. In an announcement blog post, Team Secret stated that they are “developing exclusive content and esports activations” for the Uniswap community, as well as helping Uniswap reach a new user base.

“For the first time in history a DAO sponsors an esports team? Won’t the last,” reads a Description of expenditure on Uniswap’s grants page.

Uniswap is not the only project looking for unconventional ways to encourage growth. Earlier today the Defy tracking and management platform Zapper unveiled a “search” reward system for users to try out various features. The current daily search is for website openings, while the weekly search focuses on adding/removing liquidity from the protocol and creating asset swaps. Completing quests gives users experience, which can be used to eventually “level up” and earn NFTs.

“The goal is to make DeFi more accessible,” said Seb Audet, founder of Zapper. Traditionally, finance has always been considered something terribly boring. He wore:

“Most people have wired themselves to believe that it’s too complicated and not the most exciting thing. We want to flip that script. By having something more fun, we’re making it more accessible Huh.”

The system is reminiscent of Rabbithole, a startup designed to encourage deeper involvement with the DeFi protocol. The total number of addresses interacting with the DeFi protocol broke 1 million at the end of last year, but Rabbithole founder Brian Flynn Warned to interpret this figure as a sign of a rapidly growing user base.

“The reality is that the number of unique users is only 10-15%. It is the actual metric that matters, ”Flynn told Cointeclague.

However, initiatives from Uniswap and Zapper show that projects are going aggressively to find users. Protocols like Uniswap notably have massive token treasuries that can be deployed, as well as a community of DAO participants who can recommend the initiative – a failed proposal on Uniswap’s governance forums was to buy Super Bowl ads.

While primetime ad spots may be a way off, many projects are looking for smaller sponsorships and targeted placements. DeFi-focused publication The Defiant recently revealed an Ave Background acquisition, and Uniswap is a sponsor of the Bankless DeFi podcast.

This is part of a broader effort to make all DeFi more accessible, understandable and welcome.

“DeFi has struggled because there is a lot of friction on entry. There is a lot of DeFi jargon + you have to learn all the Web3 basics (wallet, adding gas, canceling transactions, etc…),” the audit said . “We want to help with this by making it more fun, active. Learning doesn’t have to be so challenging.”