Chapter 3: Liquidity mining - A review by SixDegree
SummaryLiquidity Mining (LM) program is still seen as the best way to bootstrap new ecosystem and new applications. However, very few people have used empirical studied / data-driven research to assess the true impact of LM.We studied the Uniswap 2020 LM program and found that the LM program did not improve significantly the liquidity nor the trading volume of major AMM pools including USDT-WETH, USDC-WETH, DAI-WETH and WBTC-WETHThe LM program had a similar retention rate than airdrop with a ...
Chapter 3: Liquidity mining - A review by SixDegree
SummaryLiquidity Mining (LM) program is still seen as the best way to bootstrap new ecosystem and new applications. However, very few people have used empirical studied / data-driven research to assess the true impact of LM.We studied the Uniswap 2020 LM program and found that the LM program did not improve significantly the liquidity nor the trading volume of major AMM pools including USDT-WETH, USDC-WETH, DAI-WETH and WBTC-WETHThe LM program had a similar retention rate than airdrop with a ...
Chapter 2: CAC - A review by SixDegree of Airdrop and Liquidity Mining
SummaryWe find out that airdrop CAC range from $1,000 to $10,000Such CAC is much higher than traditional financial institutions at $50 to $1500. This reflects the crypto market's focus on early adopters and its smaller TAM.Most protocols do not pay much attention to CAC as they simply see it as a way to build a strong community and bootstrap their network in the early days.Though we agree it is also important to have an understanding of it and iterate on token distribution using quick fe...
Chapter 2: CAC - A review by SixDegree of Airdrop and Liquidity Mining
SummaryWe find out that airdrop CAC range from $1,000 to $10,000Such CAC is much higher than traditional financial institutions at $50 to $1500. This reflects the crypto market's focus on early adopters and its smaller TAM.Most protocols do not pay much attention to CAC as they simply see it as a way to build a strong community and bootstrap their network in the early days.Though we agree it is also important to have an understanding of it and iterate on token distribution using quick fe...
Chapter 1: Retention - A review by SixDegree of Airdrop and Liquidity Mining
00. Summary for TwitterAirdrops have an average churn of 80% after four months even for top protocolsSelected airdrops including 1inch, Uniswap, Optimism, Arbitrum and ParaSwap have a retention rate under 20% after four months and under 15% after 12 monthsThe churn slowed down after the four month and remained stable for the best ones (e.g. Optimism) or continued to decrease for the less quality onesA good airdrop strategy can prevent the token holding rate from entering a long-term decline.O...
Chapter 1: Retention - A review by SixDegree of Airdrop and Liquidity Mining
00. Summary for TwitterAirdrops have an average churn of 80% after four months even for top protocolsSelected airdrops including 1inch, Uniswap, Optimism, Arbitrum and ParaSwap have a retention rate under 20% after four months and under 15% after 12 monthsThe churn slowed down after the four month and remained stable for the best ones (e.g. Optimism) or continued to decrease for the less quality onesA good airdrop strategy can prevent the token holding rate from entering a long-term decline.O...
