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DeFi Weekly covers developments in the decentralized finance (DeFi) space, focusing on trends such as permissionless identity, the economics of airdrops and user acquisition, crypto business strategies including lifetime value assessment, challenges in user growth for Web3 projects, and considerations for stablecoin reliance. It touches on legal, economic, and practical aspects crucial for navigating the crypto industry.

Decentralized Finance Crypto Business Strategies User Acquisition and Retention Legal and Economic Challenges in Crypto Web3 Growth Strategies Stablecoins and Asset Valuation

The hottest Substack posts of DeFi Weekly

And their main takeaways

Arbitrum's $2,175/user Acquisition Campaign.

255 implied HN points • 13 Apr 23
💰 Finance Cryptocurrency
  1. Arbitrum's acquisition campaign cost $2,175 per user.
  2. Low retention rates can significantly increase customer acquisition costs.
  3. It's crucial for businesses to understand and target their ideal on-chain users to optimize marketing campaigns.

Lifetime Value for Crypto Businesses

255 implied HN points • 03 Apr 23
🔮 Crypto Business Metrics Frameworks Cryptocurrency
  1. Understanding the concept of Lifetime Value (LTV) is crucial for crypto businesses as it determines how much a customer is worth in terms of fees earned over their lifetime.
  2. For different categories like chains, DEXs, lending, stablecoins, and yield aggregators, there are specific frameworks to optimize customer lifetime value based on factors like transaction size, fees applied, profit earned, and performance fees.
  3. Each crypto primitive operates similar to traditional businesses but with unique mechanics due to the nature of the crypto environment, such as the impact of costs on profits and the challenge of optimizing incentive elasticity.
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The 4 Problems of Airdrops

235 implied HN points • 26 Apr 23
🔮 Crypto Liquidity Valuations Data
  1. Decentralisation theatrics don't necessarily protect against legal issues with airdrops.
  2. Airdrops can lead to early liquidity for team members and investors, impacting valuations.
  3. Inflated user counts from airdrops may not reflect genuine user ownership or value creation.

Defensible vs Commodity Infrastructure

157 implied HN points • 06 Feb 23
  1. Investing in infrastructure is crucial for the future of crypto.
  2. Building expertise in aggregating demand across different networks can attract users and improve experience.
  3. Understanding the value and potential of bridges in a multi-chain world is important for investors.

The Rise of "Web3 Growth"

137 implied HN points • 19 Apr 23
🕹 Technology Cryptocurrency Blockchain Marketing Data Industry
  1. Transition from technology being just functional to focusing on differentiation and market viability in the crypto industry
  2. Challenges in growing a crypto project include difficulties in measuring effectiveness, identifying real users, and understanding target audience
  3. Current growth strategies for crypto projects heavily rely on organic methods due to limitations in paid channels and data quality

The Path Forward

117 implied HN points • 27 Mar 23
💰 Finance Cryptocurrency Investment Technology Future Economy
  1. All value on earth will shift to public chains in the next decade
  2. The speed of crypto adoption is likely faster than internet adoption due to existing infrastructure
  3. Believing in the future of crypto is crucial, regardless of specific catalysts for growth