Summary
dForce can make ~2% on all volumes thanks to dynamic referral payments. This post suggests implementing a pilot program by adding two vaults from Cinch’s referral marketplace: Ribbon EARN stETH and Ribbon EARN USDC. No additional resources are required from dForce to move forward with this pilot program.
Abstract
Monetizing a non-custodial platform is difficult. Monetizing a non-custodial platform without negatively impacting the user experience is even harder. dForce can overcome this challenge by maximizing referral payments from dApps. Cinch turns every dApp into an affiliate partner and delivers ~2% of DeFi TVL to platforms like dForce. Cinch’s vaults act as middleware and require no development resources to use.
Motivation
One way to monetize yield products is to charge users. The problem is charging users is zero sum: it reduces their profit, and creates an incentive for them to interact with the underlying product directly.
A more sustainable way to monetize is to charge dApps for distribution.
All financial products need distribution, and dApps are no exception. dForce can generate ~2% on all volumes deployed into DeFi thanks to dynamic referral payments from decentralized applications.
Specification
Cinch enables dynamic referral payments from any DeFi product. Referral payments are immediately compatible with any platform partner, including dForce.
Receiving maximized referral payments from dApps requires no additional integration work from dForce. It only requires that deposits be made through Cinch’s vault.
This post suggests implementing a pilot program with two products on Cinch’s marketplace: Ribbon EARN stETH and Ribbon EARN USDC.
Benefits
- dForce makes ~2% on all volume deposited into these products
- Sizeable new revenue stream directly to the DAO treasury
- Higher profitability and longer runway
- No negative impact to user profits
- Opportunity to improve profitability by using Cinch’s marketplace for additional dApp integrations
- Add two best-in-class yield products from a protocol with a great reputation
Drawbacks
There are no known drawbacks to implementing this proposal. However, as with any new program, there may be unforeseen challenges that arise.