DeFi Marketing: 7 Powerful Marketing Strategies To Get More Users
April 20, 2022
Decentralized Finance (DeFi) is one of the crypto ecosystem's fastest-growing areas. The explosion of DeFi platforms directly results from the exponential growth in the ecosystem's active users. With the rise in competition, it's becoming more challenging to succeed in DeFi marketing, and you need an effective marketing strategy to acquire more users on the platform.
Earlier platforms could acquire more users by rewarding their tokens to traders who joined their liquidity pools. This strategy, however, is no longer a viable option for your DeFi marketing strategy because offering your DeFi tokens in exchange for liquidity cannot be sustained in the long run.
When developing a marketing strategy, you may get confused between targeting active DeFi traders, who can quickly boost the TVL of your DeFi liquidity pool but involve significant incentives, or trying to acquire new users who can help expand brand awareness of your DeFi protocol but require a sufficiently long conversion process and might result in low user LTV.
In this article, we'll discuss marketing strategies that you can use to acquire both types of users.
7 DeFi marketing strategies to boost user acquisition
1. To encourage active trading and to attract new users, offer trading incentives
Total Value Locked (TVL) and Monthly Active Wallets are two critical metrics for a DeFi protocol (MAW). Every DeFi marketer's ultimate goal is to work on the growth of these KPIs actively. To increase their TVL and MAW, DeFi protocols frequently take the simple route of rewarding users with tokens in exchange for providing liquidity.
Offering free tokens may sound like a good idea, but they can work against your project's growth by lowering its overall value!
This is where your trading rewards program comes into play. Through trading rewards, we typically reward users who trade the most volume in a given timeframe and serve as a foundation for the growth of your platform. This strategy also aids in the development of liquidity and total value locked, which can demonstrate the growth of your DeFi platforms and foster trust and confidence among new users who are considering joining your platform.
Best practices for developing a trading incentive program include:
- Gamify the trading process: Offer your users daily, weekly, or monthly rewards for keeping a trading streak on your DeFi platform.
- Host trading competitions: It's an ideal strategy if you're starting and want to boost trading activity by increasing trading volume.
- Reward active traders with limited-edition NFTs and give them a unique role in your discord community.
Pro tip: You can incentivize active traders with fiat money or stablecoins as the winners are likely to reinvest the winnings into your platforms.
2. Take your DeFi promotion to another level through ads
When most people think of advertising, they think of Google ads or Facebook ads. These platforms have created a robust advertising network, but their ads are heavily restricted for DeFi platforms. Implementing an effective DeFi advertising campaign can give you incredible user growth by putting you in front of your target audience.
As marketers, we try to get the most out of our advertising budgets, and the platforms listed above may not be helpful for that. However, you don't have to worry; this is where crypto-based advertising shines. With various targeting mechanisms and ad formats, many crypto ad networks can provide the most relevant audience for your DeFi platform. Most importantly, they do not limit your ads, so you do not have to worry about your display ads having a smaller reach or being pulled.
We have compiled a list of the best blockchain-based advertising networks for you.
These ad networks can assist you with user acquisitions while keeping your cost per acquisition (CPA) low. You can significantly increase your ROI by creating eye-catching graphics that give details about your DeFi project to capture potential users' attention and build brand awareness.
3. Create an SEO and content marketing strategy for long-term growth
Building an SEO and content strategy for a DeFi platform is a highly underestimated aspect. Marketers often overlook it because it does not typically provide direct benefits to platforms. However, the long-term advantages of SEO and content marketing are enormous.
When you consider the growth of the DeFi ecosystem over the last two-three years, you'll see how critical it is to rank above the fold in search engine results. Content marketing can help you reach the ideal users and educate them about the ecosystem by keeping them informed, resulting in increased user trust in you and attracting new DeFi users to your platforms. The primary goal of your SEO and content marketing strategy should be to establish authority in your niche by providing sufficient resources and guides to your users.
4. Create a PR strategy to increase your DeFi platform's visibility
When potential users learn about your DeFi protocol through marketing or listing websites, the very first thing they will do is do a little research online. Hence, having information regarding the project on well-established and reputable websites can significantly boost your credibility. Press releases can be an excellent strategy for increasing the visibility of your DeFi protocol on the most well-known crypto websites without spending an exorbitant amount of your marketing budget on advertising. Additionally, having your DeFi protocol mentioned on high-traffic websites will significantly help your SEO efforts.
Emphasize providing your DeFi platform's objective, new partnerships, and significant milestones achieved and providing value and informing your users about the DeFi ecosystem. Rather than simply trying to direct readers to your company and its goals, the story should be committed to resolving some issues through detailed market research.
5. Publish your DeFi application on popular DeFi trackers and listing websites
Listing websites such as Defi Lama, Dappradar, Etherscan's DeFi tracker, Coinmarketcap, and others have grown in popularity among DeFi users because they provide easy access to important information about new and established DeFi protocols and receive much traffic. As a result, it would be ideal if you could publish your projects on as many credible DeFi trackers as possible.
The simplest way to publish your platform on these websites is to contact their team or follow their instructions. When building an account on these websites, it is best to include all relevant information that may interest your target audience. Include links to your DeFi protocol's source code and technical documentation, and details about your project's founders and team. You should also include info about the mission of your project, key investors, and other partners.
6. Collaborate with influencers and key opinion leaders in the DeFi ecosystem
If you want to create brand awareness and boost your position in the DeFi ecosystem, you should collaborate with DeFi influencers and key opinion leaders (KOL). These personalities are ideal for assisting you in building trust among DeFi users and providing you with an incremental increase in user acquisition. Collaborate with influencers and key opinion leaders (KOLs) who understand and support your mission, and ask them to review your protocol for their audience.
- Do extensive research on the influencers you want to work with, whether you work with a blockchain marketing agency or find them yourself.
- Avoid working with influencers who don't strike a chord with your target audience.
- Create an affiliate program with the influencers; this way, when a user joins your protocol through them, they will receive additional incentives, making it a win-win situation for everyone.
Continue reading: How to Find the Right Influencer for your Blockchain Business
7. Create a referral program
You expand via your DeFi protocol's most significant assets through referral marketing, your users. A referral program, also known as "word of mouth marketing," is a growth marketing strategy that allows you to incentivize your current users to endorse your DeFi platform to their network. Several well-known names in the cryptocurrency space, such as Coinbase, Binance, and others, have their referral programs. Over the last two years, Cryptohopper, a trading automation website, has paid out over $250,000 in commissions to affiliates, with over 10,000 promoting their product.
Developing a rewarding offer that is simple enough to understand and encourages your users to act is crucial. Promoting your referral program via your website, announcement blogs, social media posts, and your DeFi community is also critical.
DeFi marketing is an ongoing process
Defi is an evolving and complex ecosystem, so instead of perceiving your DeFi marketing strategy as a static process, think of it as a living, breathing organism that needs to be nurtured regularly. You will need to plan and execute different strategies to acquire more users for your DeFi protocol. Some strategies will undoubtedly produce better results than others, so it's critical to analyze the key performance indicators (KPIs) and continue to analyze feedback from your community to fine-tune your DeFi protocol's marketing strategy.
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