Badger Quest on RabbitHole to Incentivize Usage of Sett Vaults

General Discussion DeFi Integrations
#1

Overview:

Greetings Badgers!

My name is Brian and I’m one of the co-founders of RabbitHole. RabbitHole is a platform for users to learn about and participate in crypto protocols while earning ownership in them. We’re excited about the potential of Badger as the home for BTC in DeFi and think RabbitHole would be a great fit to help drive more users to the protocol and provide a resource for education on the Badger suite of products.

Protocols like Gnosis, OpenSea, Matcha, Aave, Perpetual Protocol, ENS and others have used RabbitHole to drive growth to their platforms and protocols. RabbitHole has helped distribute more than $250K in rewards and has hundreds of daily active users who are completing tasks across different protocols - and has been driving adoption on the demand side for crypto networks.

Our goal with RabbitHole is to be the best education and growth platform serving the best cryptonetworks. We’re actively playing a large governance role in each ecosystem to grow the number of retail users participating in each ecosystem to foster a higher participation rate.

Details

RabbitHole will run a Quest on RabbitHole for BadgerDAO to drive new user deposits into the Sett and serve as a test for a paid acquisition channel for new badgers

Task: Deposit & Stake a minimum of $100 Tokenized BTC into Badgers Sett Vaults

Total allocation: 1200 $BADGER tokens allocated

Total number of potential users: 250

Rewards to every user: 4 BADGER tokens

Rewards paid out to RabbitHole multisig/DAO: 200 tokens

There are currently no $BADGER tokens set aside in the Treasury for onboarding and education initiatives so we are proposing to come directly from the treasury. If the quest is successful (sells out), we hope RabbitHole can be one of the major start growth gears for the BadgerDAO.

Technical Details:

RabbitHole will set up the queries using the Badger API/subgraph to track if a user has deposited and staked into the Sett Vaults.

  • If a user has deposited into the Sett and staked into a BTC Sett vault, the user will be able to receive a reward of 4 BADGER Tokens distributed the day the campaign ends.
  • The user must be BrightID verified to be eligible (to protect against users creating multiple addresses and guarantee uniqueness).
  • The quest will run for one full week after the proposal passes.
  • BADGER tokens to be distributed via Multi-sig

OPTIONAL: There will be no minimum time the user has to stay in the sett to claim the reward. We can set requirement at a certain block number so current badgers will not be able to participate (if the community wants this).

Goals:

  • Introduce a new class of users to the Badger ecosystem.
  • Training new users in the ecosystem to use the protocol and provide a way to rebate gas deposits with a token reward.
  • Test out RabbitHole as a meaningful paid acquisition channel for the Badger community and test out new features.

As a quick case study and to give some data points, we ran a campaign with Matcha Here were the stats from the campaign:

611 users made a swap on Matcha from RabbitHole

262 users completed the campaign and earned 30 $ZRX

270 of the 611 users (44%) pooled on Uniswap

In the future, we can run more campaigns with BadgerDAO such as voting on proposals, sending more users across the Badger Bridge, or promoting any of the other products in Badgers Suite.

This is just the beginning of what’s possible for the Badger ecosystem. As the number of users grow on RabbitHole, the more people that will be introduced and onboarded into Badger.

We welcome any feedback from the community on this proposal, and hope to put move to a BIP in the next few days. We hope to see you in RabbitHole soon!

6 Likes
#2

Is there a minimum amount that needs to be deposited to claim a reward? Is there a minimum time that one needs to say in the sett to claim the reward? Is there any mechanism to prevent current badgers from claiming the reward?

It says the campaign will run a week. If there are not enough users, what will happen to the remaining tokens, will they be returned to the treasury? At current gas prices, the reward is probably less than the gas cost to procure the tokens, deposit in the LP, then deposit and stake on badger, and definitely less than the combined cost of entering and unraveling a position. As such I would think it is a possibility that not enough users enter in.

Are there any statistics on retention from any of your other campaigns. For example, with the Matcah campaign, do you have any information with users who used the platform more than what was required to earn the reward.

Also, if rewards are 4 tokens per user and Rabbithole is keeping 20% of the tokens, that is only 240 potential users, lets not round up arbitrarily.

#3

I agree, while I’m all for driving up the adoption rate of Badger, gas prices atm make it rather infeasible. I think incentive campaigns using the BSC sett vaults would be far better.

1 Like
#4

Is there a minimum amount that needs to be deposited to claim a reward? Is there a minimum time that one needs to say in the sett to claim the reward? Is there any mechanism to prevent current badgers from claiming the reward?

We can set the minimum amount to $100 (in BADGER) at the time of the campaign is launched. There will be no minimum time the user has to stay in the sett to claim the reward. We can set requirement at a certain block number so current badgers will not be able to participate (if the community wants this).

It says the campaign will run a week. If there are not enough users, what will happen to the remaining tokens, will they be returned to the treasury? At current gas prices, the reward is probably less than the gas cost to procure the tokens, deposit in the LP, then deposit and stake on badger, and definitely less than the combined cost of entering and unraveling a position. As such I would think it is a possibility that not enough users enter in.

Each campaign/quest that we have run has been completed on time as long as the reward has been higher than the gas costs. What do you think would be a fair reward to make it higher than the gas cost? We can adjust the number of users to make up for higher reward per user.

Are there any statistics on retention from any of your other campaigns. For example, with the Matcah campaign, do you have any information with users who used the platform more than what was required to earn the reward.

Retention varies by campaign, and largely has to do with how the campaign is structured and what the interaction patterns are (if a user is swapping every day vs. taking out a loan).

Also, if rewards are 4 tokens per user and Rabbithole is keeping 20% of the tokens, that is only 240 potential users, lets not round up arbitrarily.

This should read as 200 tokens will be allocated to the RabbitHole DAO for assisting with the campaign, while abiding by 1y lock and plans to vote in governance

Great questions, have edited the OP with these answers. Let me know if you have any other questions!

#5

Thanks for providing information about your platform.

One question - considering RabbitHole’s angle is to increase education and new user adoption, do you typically exclude all existing and past users from completing quests?

I’d be curious to see if you have data on

  1. how many users you have registered
  2. what % of your registered users are currently badger users.
1 Like
#6
  1. We have about ~7500 users who’ve connected their wallet and done at least 1 action
  2. Less than 0.1% of our users are badger users (has interacted with Badger contracts)
1 Like
#7

Thanks for the statistics brian! @DeFiFrog

Looks like we could maybe pull in a fresh batch of badgers!

I think this could be a great introductory approach to outsourced education/ user acquisition. I personally love using the rabbithole platform and try to complete every quest. of course its up to community to decide if costs are worth trying to acquire new users.

One thing I was thinking through is if rabbithole is geared to make pushes in specifc regions or is mostly a wide reach aiming for global users?

#8

Paying 4 badger ($200) for someone to deposit $100 on our site makes no sense. I could see paying 4 badger to cover gas for users moving more than $10k USD in value into any of our setts.

I agree with other posts that this would work MUCH better on BSC where we are looking to attract new users, have a bit less of a profile, and could pay .25 badger or 1 badger as a reward to cover gas prices and provide a bit of profit to the user for taking the time to engage.

1 Like