AquaFi Protocol | Marketing Initiative Proposal #XIOfeedback

The first round of community feedback provided some valuable insights. It had been all about discussing our goal with AquaFi and what Strengths, Weaknesses, Opportunities and Threats we can identify. You all have produced really valuable insight and feedback. :raised_hands:
Main results from the Community SWOT can be found in this post.

We had originally intended to discuss marketing strategies later and first dive into logo and branding but now the topic came up and some quite interesting ideas are already being discussed.

Creative Marketing Ideas

Which marketing ideas do you have for AquaFi? Whatever ideas you have, please add to this dedicated topic and earn extra credits here.

In this post we are going to explore one idea in depth. One of our very engaged Citizens @AllStuffCrypto recently proposed this marketing strategy for the AquaFi Protocol. We now invite you to provide your feedback:

@AllStuffCrypto proposed:
I was thinking what would be the best way to create excitement for AquaFi release beyond just the citizens of Blockzero. Our target market for the AquaFi protocol is all LP providers of all protocols and not just Blockzero citizens. Therefore I think it will be a good idea to mint additional Aqua tokens to airdrop to LP holders of other projects. Not to all LP holders, but just to the interested ones.

Here is how I propose we can do it:

  • Open a LP registration page where current LP providers from supported DEX can go and register their Ethereum address which is holding the LP token. Have a registration deadline which ends 1week before token launch to enable calculations of how many tokens have to be minted.
  • Only registered addresses will receive Aqua tokens to claim on release day via the claims dapp. This ensures only interested participants who are likely to use AquaFi but don’t hold any XIO get the airdrops. To prevent gaming the system and only attract genuine liquidity providers, this offer should only be open to Eth addresses that have held an LP token for longer than 1month.

Benefit of this adoption strategy is that we would be advertising the protocol directly to LP providers ahead of aqua launch. We can measure the success of our advertising campaign by the amount of address registrations we are getting and can ramp up marketing before launch if required.

Although there will be extra inflation, I believe this approach would get us maximum exposure to the LP’s and we would be a talking point across many different social channels and groups. I believe the exposure benefits far outweigh the negativity surrounding inflation. LP’s are the lifeblood of this protocol and without them Aquafi will generate no revenue.

Therefore we need to reach out to all LP’s or else the protocol risks failing. Since the airdrop will be limited to registered Eth addresses holding LP tokens for longer than 1 month, the extra inflation would likely target only those who are willing to use the protocol. Therefore I believe this justifies the extra inflation.

Possible questions to discuss here are:

  1. What do you think about this strategy in general?
  2. Which LP providers should we focus on? Are there any you would exclude?
  3. Should we apply any additional eligibility requirements?
  4. How would you exactly reach out to these liquidity providers?
5 Likes
  1. I think that the LP providers from other projects could register to get free AQUA only to dump it. It’s free money after all. So honestly I think it’s not a 100% good idea. I think that almost 70% of LP providers registered users can dump it. But in every case it’s a kind of advertising

  2. I would esclude the new LP provider and the ones that put and remove liquidty quickly and often

  3. each LP providers will get the same amounts of AQUA independently from their balances.

  4. Twitter, biz4chan,reddit, and pinned post in telegram.

2 Likes

1. I agree its quite an impressive idea. In general people could still just apply for it and drop it yea. So it doesnt quite solve any problem except minting it more. Better it would be if the tokens would like remain locked for some time after registering and then you would be able to withdraw them after lets say like 1 year, to provide the effect you are describing. And the LP providers for XLP and citizens are already familiar with the AquaFi so i would rather target the world outside blockzero.


2. The main LP providers should focus on XIO because its still the main protocol. And maybe do like a minimum LP amount of like 1ETH+.


3. Like i said do maybe 1ETH+ LP providers only.


4. As the AquaFi can be included with many protocols it would be wise to target those audience. If the goal is to advertising I would rather just do some airdrop for all ETH holders over 1ETH+ , because i think it would do more good and reach more people to promote AquaFI.


I think the strategy is good but i would give it a little twist, we would give Aqua to interested LPs that actually also hold XIO, this could be a boost for both our projects at the same time. LPs would learn about XIO and see our value at the same time that they would see the value of Aqua. This would benefit the whole ecosystem.

Additionally we could partner with some gamification platform (rabbithole comes to mind) and reward users that 1. buy aqua 2. provide liquidity using Aqua.
And in fact the same could be used for Flash 1. buy flash 2. flahstake
(I will add this last part in the marketing topic aswell)

1 Like

If we look at this from aqua’s perspective than the idea is fantastic. We get a lot of exposure just before the launch, we won’t waste any tokens as we only send it to registered users.
However if we look at it from XIO or blockzero perspective, there are some disadvantages.
First of all XIO holders get a lot less tokens (% wise).
Second it now gives people an oportunity to get AQUA without having XIO. We don’t have the XIO index pool yet, so right now the whole proposition of XIO is that it is the only way to get new tokens. If we keep giving people alternative ways to get the given tokens what is the point of having XIO?

If we choose to do this anyway, i would focus on LP providers that don’t give any rewards aside from fees, so Uniswap (the UNI incentive is over i believe), but not balancer. As I doubt people would be willing to give up their extra reward for AQUA’s 10%.

1 Like

What do you think about this strategy in general?

I am afraid this strategy will only result on these LP providers that do not care about XIO or AquaFi to get the tokens and instantly dump them. Unfortunately I have seen this in other projects: free tokens? They just dump them and get some quick buck. They do not care about the project, they come to the Telegram channel asking “when free token”. I also feel it would be unfair to the people that has XIO tokens and has invested his money, time and resources on holding the XIOs for the Aqua tokens (which could have been used for another project and get more immediate gains), but this is secondary.

However I think the origin of this proposition “make LP holders interested in AquaFi” is very important. People should be aware of the project, or the project would never fly. What I would do is to mint an extra number of Aqua tokens. This number would be a % of the total. So if there is 300M amongst the XIO holders, maybe 30M extra. I would then distribute these as a contest to LP providers that:

  1. Pre-register as described in the proposition
  2. Join the BlockZero and AquaFi Telegram channel
  3. Retweet, follow, mention someone in a tweet of the campaign
  4. AquaFi their LPs in the protocol

Only then, they would get these extra AquaFi tokens

This way you attract the attention of people because “wow free tokens”, you engage them in the project (telegram channel), you enlarge the outreach (retweets and mentions) and you jumpstart the protocol (they have to deposit their LPs).

Which LP providers should we focus on? Are there any you would exclude?

I would try to reach any LP provider in the main DEXes. If they have to be limited to something I would limit it to ETH/Token and Flash/Xio. If this token is Flash or Xio, their prize could be extra.

Should we apply any additional eligibility requirements?

Above described.

How would you exactly reach out to these liquidity providers?

Main vias would be Telegram, Reddit, Twitter, Crypto webs/forums. Then it would feedback itself with the retweet, follow and invites.

1 Like

In general I think this is great idea.

I think everything needs to be worked out with AquaFI first with an ‘AquaFI in 5’ blog created and released upfront before this marketing push is done. This is to enable those LP holders who learn they can claim AquaFI, to clearly understand the benefits of retaining the AQUA token over selling it, in a clear way the can refer back to. People forget things, misinformation can be spread to so having something clear they can refer back to allows them to have a clear thought process on what to do with their AQUAFI.

I think the weighting of LP providers to focus on should be based upon 2 scores combined:

  1. Pool diversity (in terms of the number of providers).

  2. LP pool size (in terms of Liquidity)

I don’t think it would be good to include a LP provider which has very little diversity but huge Liquidity as this would make AQUA not very diverse and the actions of the few receiving could all be to sell. This could give a false indication of people’s perception of AQUAFI.

If the AQUA tokens are instead claimable by a more diverse LP pool then the actions of selling, holding or buying more would be the average of many people and gives a much clearer indication on peoples projection for AQUA.
The more diverse the AQUA LP becomes, the lower the risk for LP providers.

Most desirable LP pools in my opinion would be the ones with the highest diversity in combination with Liquidity.
More people can spread the message of AQUAFI further than a few claimers of a not very diverse pool. Diversity would help boost organic marketing.

  1. Time in pool being at least 1 month and this is prior to the announcement date of the marketing push.

  2. An eligible claimer needs to retweet quote their unique claim code along side:
    ‘I’m entitled to claim free AQUA Tokens, go to AQUAFI.io to see if you can claim for free’.
    This retweet quote could made to be on a ‘AquaFI in 5’ blog post tweet by block zero labs.

AquaFi would be beneficial to Uniswap as the higher fees an LP privider could earn by Aquafing their LP tokens could draw in many more new LP providers to Uniswap.
Connect with Uniswap and see if they can make an announcement through twitter, medium, Reddit and on their own platform. AQUAFI should massively benefit their protocol so I can’t see why they wouldn’t want to announce it.

Could try the same with DEX aggregators also. 1inch exchange perhaps.

For further outreach the tweet to claim could help with outreach as mentioned further above about claim eligibility.

1 Like

I like this.

This would put a cap on total tokens available to distribute. Could be on a first come first serve basis to obtain the tokens in combination with the eligibility criteria.

If this was to go ahead it would be a good idea that the % of extra tokens minted is voted upon using snapshot.page.

I’d be in favour of 10% extra AQUA tokens being minted for this market incentive as I believe this could add much more in value to AQUA than the initial 10% dilution XIO holders have on their claimable AQUA.

Another thing that would need to be worked out is the distribution ratio to those eligible. Would it be 10% of LP holding value is claimable in aqua or say 2 %?

For example:

If 10% and eligible LP holding was worth $10,000 the person would receive $1,000 worth of AQUA.

If 2% and eligible LP holding was worth $10,000, the person would receive $200 worth of AQUA.

I personally think a lower ratio would be better as you’d need a decent amount of LP value to make selling AQUA profitable with the high gas fees.
It is more likely this AQUA would remained held until AQUA grows much more in value (if they have the intention of selling that is) or they would actually decide to use their AQUA within the protocol instead. The more value people receive in aqua with this marketing drop the more likely the will be tempted to sell. I think the aim should be to avoid tempted sellers and design the marketing distribution in a way in which it makes more sense to hold the claimed AQUA or utilise them within the AQUAFI platform itself.

3 Likes

I love the idea of an airdrop “uniswap” style. Even if this will go against me, since I have liquidity tokens on the same address where I get my xio and aqua airdrop so I won’t get a second airdrop ahah

1 Like

Dear @AllStuffCrypto, @jorn, and team,

It’s a brave and interesting marketing idea.

Following are my thoughts:

  1. What do you think about this strategy in general?
  • It’s a good idea, the only downside is distributing too much for free would not create stickiness, we have to package the whole idea with some sort of mystical element. The rewards for such airdrops can be locked upfront and should be unlocked in phase-wise manner from the day of liquidation.
  1. Which LP providers should we focus on? Are there any you would exclude?
  • If we choose to go ahead with this then all the LP providers should be approached, for all the pairs.
  1. Should we apply any additional eligibility requirements?
  • All the registered airdrop accounts should be part of our telegram groups and also retweet a certain message.
  1. How would you exactly reach out to these liquidity providers?
  • Can we include a referral system, this will increase registrations
  • We should post memes, create hashtags
  • Use reddit subgroups
  • Publish mass articles
  • As citizens we should use our social media channels for distributing content

Thanks,
Monk

1 Like
  1. I like the generosity but I also fear many would just dump. However, I like the idea of attracting in longer term LPs so perhaps we can go about it a different route, that route being the claiming of an additional multiplier that would result in similar inflation to that of just airdropping tokens. So they would register their LP ETH address and that address gets registered for a higher aqua multiplier. When they use the protocol they get that bonus. The multiplier would be a pre-launch claim only.

  2. Probably ETH/wETH to stable coin that’s not tether. Heck you could have different multiplier bonus for different liquidity pairs giving more proportional preference. If you look at the amount of liquidity held in different pairs, make the bonus multiplier proportional to that, so the largest liquidity pair gets the largest bonus to attract them over to use aqua.

  3. I like being as open as possible. So don’t make it too tough. LP being held for greater than one month prior to the announcement sounds about right.

  4. Social forums are still likely the best route, but also news. Any idea of where these LPs live? Are most in North America? Not sure how we figure that out but if most LPs live in Asia then focused marketing there is likely more directed.

2 Likes
  1. I think the idea would actually be seen as an airdrop and that might have negative side effects on the branding and community of aquafi.
  2. Even if we do this as a marketing exercise…I would not airdrop a lot of aquafi(maybe even 100 per person) to each person with Uniswap liquidity providers with atleast one month duration.
  3. In my opinion, this should not be done at launch(to remain true to 100% tokens for xio community at launch) but should be done for one dex each month after launch. That would be more engaging.
  4. We can engage few big influencers to start off the protocol and make more shout out to these pools in our around the block series.
1 Like
  1. From a marketing point of view it is ok to eventually increase the awareness of Aquafi specific and Blockzero as a whole. But I am afraid that this will be seen to many newcomers as just another airdrop to quickly make some money.
  2. There should be some conditions to be a be an LP provider. In one way or another they should create awarenes by retweets or other actions on socials. In that way all Blockzero citizens will ‘profit’ from this as well.
  3. see 2
  4. Use of social forums, influencers? etc.
2 Likes

This is so old school… Like the tasks, in 2017, to farm ICO tokens… I would prefer an automated platform/process, but I don’t think we have the time to develop one

Agreed, but for automation user consent is also required, IMO people would be averse to automatically link their social media ids for auto posting

I think this is the perfect approach. Instead of chose to do the airdrop OR don’t to avoid sell pressure we may focus on how we can have the airdrop for those LP and help then to understand the value of holding it. Maybe just one infographic can solve that or a short video…

1 Like