We work with Web3 companies from diverse verticals to develop unique tokenomics strategies that align with their specific goals and satisfy the needs of their teams, stakeholders, investors, and users.

We recognize that many companies may feel uncertain about practical steps in tokenomics. Therefore, we would like to share a Client’s case study to provide you with insights and clarity.

About the Client

Our Client is a pioneering tech firm at the forefront of DeFi, seamlessly bridging the gap between traditional finance and digital assets. Their cutting-edge products and services streamline interactions across blockchain networks and financial markets, enhancing the accessibility of DeFi. By leveraging innovative solutions such as cross-chain bridges, liquidity provisioning, and DEX integration, they are driving the mainstream adoption of DeFi.

Challenges

The Client faced several significant challenges and wanted to:

1. Make a deficient user base, increasing the platform’s utility, reach, and growth potential.
2. Ensure the securing of adequate liquidity, resulting in increasing transaction activity and fees.
3. Make the need for more compelling incentives for market players to hold tokens and provide liquidity.

Goals

To address these challenges, we set clear goals:

1. Establish a mechanism to transform the Client into a plug-and-play B2B product for external EVM dApps and their audience.
2. Guarantee market returns for relayers to maintain motivation to work correctly and attract external liquidity providers, ensuring high transaction activity and fees.
3. Encourage all market players to maximise the number of locked tokens or extend locking periods, and encourage them to provide liquidity on the EVM side of the bridge through the reward system.

Our solution and results

We implemented a range of tools and utilized best practices in the field to achieve the results that the client desired.

1. Developed a mechanism that enables the Client to serve as an out-of-the-box B2B product for external EVM dApps and their audience, effectively tackling challenges related to cross-network arbitrage losses in various projects.
2. Enhanced the platform’s value proposition for liquidity providers by ensuring competitive yields, tokenomics, and DAO mechanics.
3. Adopt a Keep3r Network-inspired mechanism, allowing a select group of whitelisted arbitrageurs to utilise the bridge’s liquidity for executing positive arbitrage and sharing the resulting profits with the Rewards Fund and liquidity providers.

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