Product- Driving Credit Score Utility & Adoption

In the real world, having a good credit score comes with lots of benefits. Lower interest rates on big ticket loans, deposit waiver, access to premium cards & more.

Which brought me to the question, how do we drive adoption of ARCx credit score in the defi-verse. Furthermore-

  1. How do we ensure product stickiness for Defi passport? (addiction)

  2. What will the degens miss out on by not owning a defi passport? (fomo)

It is important that we drive utility for the credit score by combining it with benefits. By using positive reinforcement habits to drive utility for passport, we can supercharge it. How? We reward users who maintain a good credit score with additional benefits.

  In layman terms, we reward good behaviour.

Product Idea

Exclusive access to new token sales for maintaining a good airdrop score (or) credit score.

Benefits for the user

  1. Early access to new token sales.

  2. They are rewarded for good behaviour.

Benefits for the new protocol

  1. They now have access to the most trusted users in the space, thus leaving the bad actors out whilst growing their community organically.

  2. Token sales generate massive hype & drive massive acquisition.

How it benefits ARCx?

  1. Revenue- Arcx can generate two additional revenue streams.

    A. Listing fees

    B. New token allocations- Which will help ARCx further diversify their treasury.

  2. Product stickiness- By combining benefits with exclusivity, they will always have a reason to come back to ARCx.

  3. Hype driven Growth- New token sales are one of the biggest growth engines in the cryptosphere.
    If a new user wants to particpate in the ICO, the user will have to buy ARCx & stake it to receive a Defi passport. We can amplify the process by offering them additional tokens if they stake for a longer duration. Longer they stake, greater the allocation. This will drive massive acquisition for ARCx as well as create buy pressure.

The Challenges

  1. Finding high quality projects early on & getting them to agree to work with ARCx.

  2. We will have to offer more additional benefits for the platform over time, ex- access to top VCs, mentorship or more.

How can we do it?

  1. Kerman can tap into his personal network for more contacts.

  2. Any DAO member who brings in a successful lead, can be rewarded with a bounty. Thus, creating an autonomous structure within the DAO.

  3. We can setup a small product working group within the DAO for the project.

How do we improve upon this product in the near future?

We can partner with new protocols, issue exclusive defi passport NFTs with custom benefits on the partner platform. This will help drive adoption for our partner protocols, whilst building good relationships.

Example- 5% more leverage on Alpha homora vault with the Wolf defi passport.

Key Metrics

  1. Acquisition

    A. Total number of new passports issued/time
    B. Total number of Arcx staked in the quarter

  2. Brand Awareness

    A. Number of impression of social platforms leading upto each token sale.

Conclusion

By combining reputation with exclusivity, we have a chance to build something unique. Would love to hear everyone’s thoughts on this.

1 Like

Definitely with you on the added benefit of the passport, allowing users to have access to new token sales.

Curious question – why would project owners be incentivized to only allow ARCx passport holders to participate in early rounds? What’s the added benefit we provide to them?

Thanks Sangeet, this is a really well thought out idea that would tie in well with the DeFi passport.
There’s a serious amount of marketing and “hype” that comes from new token launches so it would be great to have some of that attention directed towards ARCx, while enabling platforms to better control their launch.

@featherfreedom, to your point,

New projects launching their token want to see their token do well so targeting wallets with higher scores (less dumping more hodling behaviours) would be the ideal candidates to take part in their sales.

To that end, it’s really important that ARCx focuses on the number of passport holders. We have to get the passport in as many hands as possible, analyse many wallets and thus make ideas like @sangeet has suggested feasible.

After the DeFi passport is launched, this is exactly the direction I think we should be moving:

There is so many opportunities out there and this kind of initiative from the DAO could really push ARCx forward.

1 Like

In the earliest stages of any startup, traction is very important. Not just any traction, quality traction.

As the space matures, getting your first 10K “quality” users will become a major challenge, as you want “highly reputed” members in your community.

By offering token sales to only green channel users ( Users with credit score above 800+), the new protocol has access to some of the most best members in this space. Rather than pumpers & dumpers or someone randomly being chosen who has no connection to the project.

1 Like

Thanks for that. This is refreshing and I’ve learned something today :slight_smile: Excited for the future of ARCx

3 Likes

Solid write up here @sangeet! I basically echo a lot of the thoughts outlined by @knightsemplar and getting those first 10,000 passport holders is going to be key challenge and goal that all of us work towards.

1 Like

Glad! I’m excited for the future of the project as well.

Definitely! If there’s anything I can do, let me know.