Hello Aave community! My name is Ben and I am the Operations Lead at RabbitHole.
For those who don’t know, RabbitHole is a platform where users can earn crypto by using new crypto applications. For projects like Aave, we provide the best tool to find new users and to incentivize them to interact with certain parts of your product.
We recently received a $50k grant from the Aave Grants DAO and we wanted to post about how we were thinking about using our grant so that we could get the community’s input.
Summary
We would like to use our Aave grant to create a “Quest” on rabbithole.gg that rewards RabbitHole users for depositing tokens into any of the Polygon markets on the Aave app. Each user that RabbitHole verifies, up to the first 2k, will split $40k in rewards paid out in Aave (approximately .09 Aave as of 6/23).
Rationale
Our quest will help increase the TVL of the Aave Polygon markets and will introduce new users to the Aave community, who will hopefully meaningfully contribute to the community long-term.
We are proposing incentivizing users to deposit funds in the Polygon markets because:
Low gas prices on Polygon will help new users get the most bang for their buck
Polygon liquidity is lower so we can drive more relative value by focusing there
Specification
We will launch a new quest on the RabbitHole website that rewards users for depositing funds into Aave Polygon markets.
Quest steps:
Connect wallet to Aave on Polygon.
Deposit funds into any of the Polygon markets on Aave.
Confirm completion on RabbitHole to claim prize at the end of the quest.
Users who need more guidance with tasks such as transferring funds to Polygon will be given relevant guides and materials.
The $50k grant that RabbitHole received will be split 80% to the users as rewards and 20% to the RabbitHole DAO.
The quest will run for a two-week period.
The first 2000 users to do the tasks and confirm proof on RabbitHole by signing a message will split $40k paid out in Aave (approximately .09 Aave per user as of 6/23)
RabbitHole integrates Sybil protection through BrightID to ensure limit of one redemption per user.
These users will also be awarded an Aave themed NFT.
The Aave tokens received by the RabbitHole DAO will be locked for 1 year and will be used actively in governance as a DAO delegate.
Conclusion
RabbitHole is the best way for treasuries to spend directly on user acquisition and we hope to use our Aave grant to do just that. Moving forward, we hope that this is the start of a long-term relationship with Aave where we can help Aave incentivize any on-chain action that is important to Aave’s success, including proposal creation, voting, delegating, and more.
We are interested to hear the community’s input on our proposed plan and we look forward to hopefully implementing the quest soon!
I think this is a really good point and one that we have considered at length internally, and one we continue to think through.
The reason we don’t require minimums or time lock-ups is because we feel that prevents some users from participating. At this stage and scope, our primary goal with a quest is to bring awareness to Aave and help users get their foots in the door. In turn, we expect some percentage of these users to stick around and become larger parts of the Aave community.
Our opinion is that creating lock-ups or minimum deposits would ultimately preclude some portion of people from participating and would detract from our primary goal of getting people involved in Aave.
Maybe you could add a task where user have to borrow like 5-10% of their collateral or maybe reach a HF of minimum 5 or more ?
This way the users could discover the full utility of the protocol without being at risk with a large borrow, what do you think ?
Hey! It is an interesting suggestion but in general, we have tried to steer towards tasks that are capital generative rather than costly to the user. Ultimately, we want a quest to be a pathway to a larger involvement, and we feel that is more likely if a new user engages in something that makes them money. We also do not want to require new users to be at risk for liquidation, no matter how conservative the collateral is, especially since we are trying to onboard users who may not be as familiar with these tasks.
Moving forward, we are looking to integrate credentials into our platform, which would allow us to require users to be experienced borrowers to engage in this task. At that point, it would feel much more attractive to us!
@Dydymoon just wanted to provide an update to you after talking with the team - I think we are going to have a task to do a lend and a borrow. Borrowing feels like such a fundamental part of the Aave platform that we wanted to include it. Thanks for the suggestion!
Hey @Neal , thanks for following up on this? The Quest blew us away - over 2,000 rewards were claimed in less than 12 hours! There was huge demand from our community to get onboarded into Aave, and we were really excited with the results.
wow …brilliant idea to encourage finding how to unlock value, and get value!