Grant to create a Compound quest on RabbitHole

Grants
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Hey everyone! My name is Ben and I am the Operations Lead at RabbitHole, a platform where users can earn crypto by using new crypto applications. For projects like Compound, we provide the best tool to find new users and contributors and to incentivize them to act in valuable ways to the network.

We are applying for a $50k Compound grant to create a quest on RabbitHole that drives our users to provide liquidity on Compound. RabbitHole is the home for thousands of crypto-enthusiasts who are looking to learn how to use new protocols, so we view this as a great opportunity for Compound to acquire users who are genuinely interested in learning about, using, and hopefully even contributing to Compound.

The grant money will be used to reward the users that complete this quest, serving as direct user acquisition for Compound. We use TheGraph to verify the new users complete the quest and BrightID for built-in Sybil resistance.

We see this first quest as the starting point for a long-term relationship with Compound. RabbitHole is looking to become the place where DAOs find the people they need, whether it is users, token holders, or contributors. As our product evolves and Compound’s needs evolve, we can collaborate on further quests that incentivize any on-chain action. For example, RabbitHole can find protocol politicians and reward them by creating a proposal on Compound and having it passed.

Our team has already successfully done quests with the teams from ENS, OpenSea, PoolTogether, Gnosis, Uniswap and more, which have been completed by over 10,000 unique addresses.

We applied for a grant through CGP, but we want to collaborate with the Compound community as we think about what our partnership could look like if we are accepted. We would love to hear thoughts on the overall proposal, any particular Compound markets that might be worth incentivizing users to provide liquidity to, and ideas for quests that would be valuable to explore in the future.

Excited to hear from you all and to hopefully start a fruitful relationship between our two communities!

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Very cool proposal @benschecter - welcome to the Compound community!

I think running “growth” experiments is very much in the interest of Compound and its community. Some questions:

  • How should we think about what “success” looks like? Traditional companies compare the customer acquisition cost to the customer lifetime value to gauge whether a growth initiative was successful. Is that how we should think about Rabbithole quests as well?
  • How will the $50k be spent? How long will it last?
  • Will Rabbithole share quest data with our community?

Very excited to see what Compound and Rabbithole can do together!

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All for, this is what CGP is all about! Thank you!

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Thanks for the questions @sukernik! Answers to each of the bullet points below:

  • Generally, comparing customer acquisition cost and customer lifetime value is a fair way of thinking about these types of campaigns, but we (RabbitHole and the broader community) will have to reimagine what the actual metrics are in web3. The line between users, owners, and contributors are increasingly blended so the results of a campaign like this can no longer be distilled down into a single metric that tracks the amount of revenue driven. RabbitHole prides itself on providing users that actually want to contribute, use, and be part of communities, a lot of which is difficult to measure in the short-term. However, we view this as a worthwhile experiment in understanding how we can drive the right type of people to Compound’s community.
  • The $50k would be split: $40k to reward RabbitHole users for depositing on Compound and $10k to cover RabbitHole’s fee. We would abide by a one-year lockup on our $10k fee, and would use our tokens to be an active voice in governance with a bias towards advocating for user participation over short term price maximization. The grant would cover one quest, which typically lasts between 1-2 weeks, though we are open to community suggestions on the duration one way or another.
  • Yes! We will share statistics and metrics about the number and types of users that the quest drove. We are working on more longitudinal data as well, so we could help answer, for instance, what was the “year-long value” of a customer that was driven to the platform through a quest.
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