deBridge: Season 1 Airdrop Analysis

Introduction

Ever wanted to move an asset from one chain to another? Let’s say from Ethereum (ETH) to Binance Smart Chain (BSC) or vice versa, that’s where deBridge comes in. In the ever-evolving landscape of decentralised finance, deBridge has emerged as a powerhouse, aiming to create a seamless internet of liquidity across multiple blockchains.

Right after launching the Points campaign, deBrige recorded its highest daily transfer volume of $39.701m and also their number of new users was on a consistent rise.

The shaded red area signifies the period of the Points campaign in the cumulated new users chart below;

Since launching, they have also recorded over 3 million trades and over $3.7B in transactions across various chains

The image below is their daily trade numbers. You’d notice their trade numbers skyrocketed at a point when their season 1 points campaign was launched and we would be looking at actions they took to achieve this.

But first, let’s understand deBridge more…

Explain me deBridge like I’m 5

deBridge acts like a highway system connecting different blockchains. deBridge builds special roads and tunnels so your tokens can travel between any chain quickly and safely.

The main parts of deBridge are:

1. Cross-chain transfers: Move your assets between chains
2. Messaging: Send messages between chains
3. IaaS (Interoperability as a Service): Help other chains join the system

deBridge doesn’t use traditional pools (liquidity pools). Instead, it uses a smart system to make transfers happen instantly with the best rates.

Let’s dive in…

Airdrop Campaign Analysis

Let’s take a look at the deBridge points season 1 that ended not long ago;

• Campaign name: deBridge Points Season 1
• Campaign duration: April 9, 2024 — July 23, 2024 (15 weeks)
• New users at the start of the campaign: 173,940
• New users at the end of the campaign: 424,256
• Total Points Generated: ~1.5 billion points
• Fees generated: ~$11.5 million

Distribution of points

The pie chart above highlights the distribution of deBridge points across the different categories.

Points granted to users for their cross-chain bridging activity on deBridge and applications of integration partners have captured a healthy share of 73.3% of all points.

In an effort to create a positive and sustainable system, deBridge Points are allocated to users, referrers, and integrators based on the fees they pay and bring to the deBridge protocol.

Campaign Summary and Rules

Project Goals:

What did the project want to achieve with the airdrop campaign? The primary targets for this campaign for the deBridge protocol were:

1. Increase deBridge transaction volumes: DeBridge wants more users to be active and thus rewards users with points for using the protocol, paying fees, and referring others.
2. Distribute governance power: To give active users and integrators points to participate in the protocol’s future direction.
3. Increase adoption and integrations: Attract new partners and boost cross-chain transfers through incentives.

Desired User Actions:

What did the project want the users to do? To achieve the project goals, the campaign was designed to facilitate the following actions from users:

1. Making Bridge Transfers: Users were encouraged to make cross-chain transfers using the deBridge protocol, earning points for each dollar paid in fees.
2. Referrals: Users were incentivised to refer others to use deBridge, earning additional points based on the activity of their referrals.
3. Integration and Use of Partner Applications: Points were awarded for using deBridge-integrated applications, encouraging broader adoption of the protocol across different ecosystems.

Campaign Rules

Let’s look at how points were distributed to users based on various actions and activities;

Points Earning:

• 100 points for every $1 paid in fees for cross-chain transfers
• 30 points for every $1 paid in IaaS fees
• 25% referral bonus on points generated through referral links

Loyalty Multipliers:

• Tier 1 (Feb 17, 2022 — Jun 15, 2023): 3x on past activity, 1.5x on Season 1
• Tier 2 (Jun 16, 2023 — Dec 31, 2023): 2x on past activity, 1.3x on Season 1
• Tier 3 (Jan 1, 2024 — Apr 8, 2024): 1.5x on past activity, 1.1x on Season 1
• Tier 4 (Apr 9, 2024 onwards): 1x on future activity

Special Categories:

• Solflare Wallet users: 1.1x multiplier on Season 1 activity
• deSwap v1 Curve LPs: 1.5x on future activity

Integration Partners:

• Earn 25% of points generated by their users

IaaS Subscribers:

• 30 points for every $1 in fees paid to the protocol

DeBridge ensured the rules were designed to reward early adopters and loyal users while encouraging ongoing engagement with the protocol. The tiered multiplier system encourages sustained participation, while the referral and integration bonuses help to expand the ecosystem.

Analytics

But how effective was the points campaign? Let’s look at what the data says;

Before the points campaign, daily transactions were less than 4k, a few days after the points campaign started, it shot up to approximately 35k

Also, their daily users reached an all-time high of 30k after the launch of the campaign;

But you would notice from the two charts that the numbers have been dropping after their peak. So what has deBridge done to try and ensure users stick around even after Season 1? That’s what we’ll look into next

Post-campaign Stickiness

deBridge has implemented several clever mechanics to ensure a sticky user base even after the initial points distribution period. Here are the key ones:

Ongoing Points Accrual:

• Users continue to earn points for protocol usage even beyond Season 1, encouraging sustained engagement.
• The launch of Season 2 immediately after Season 1 maintains momentum and user interest.

Loyalty Multipliers:

• Following the way deBridge got long-term users to benefit more in Season 1, this will make users stick around to get loyalty bonuses going forward.
• Also, multipliers carry over to Season 2, rewarding continued loyalty.

Referral System:

• The 25% referral bonus for both individual users and integration partners creates a network effect, promoting organic growth.

Points ROI

Earning Mechanisms

Basic Point Earning Mechanisms

• Cross-chain transfers: 100 points per $1 in fees
• IaaS fees: 30 points per $1 in fees
• Referral bonus: 25% of points generated through referral links

Loyalty Multipliers

• Tier 1 (Feb 17, 2022 — Jun 15, 2023): 3x on past activity, 1.5x on Season 1
• Tier 2 (Jun 16, 2023 — Dec 31, 2023): 2x on past activity, 1.3x on Season 1
• Tier 3 (Jan 1, 2024 — Apr 8, 2024): 1.5x on past activity, 1.1x on Season 1
• Tier 4 (Apr 9, 2024 onwards): 1x on future activity

Special Categories

• Solflare Wallet users: 1.1x multiplier on Season 1 activity
• deSwap v1 Curve LPs: 1.5x on future activity
• Integration Partners: 25% of points generated by their users
• IaaS Subscribers: 30 points for every $1 in fees paid to the protocol

Scenarios

Let’s consider three scenarios: Minimal Participation, Active User, and Maximum Participation.

Minimal Participation

• Cross-chain transfers: $10 in fees Points: 10 * 100 = 1,000 points

Total base points: 1,000 points

Assuming Tier 4 multiplier (1x): 1,000 points

Active User

• Cross-chain transfers: $100 in fees Points: 100 * 100 = 10,000 points
• IaaS fees: $50 in fees Points: 50 * 30 = 1,500 points
• Referrals: Brought in users generating 5,000 points Bonus: 5,000 * 0.25 = 1,250 points
• Solflare Wallet user (assuming all activity in Season 1)

Total base points: 12,750 points

Assuming Tier 2 multiplier:

• Past activity: 12,750 * 2 = 25,500 points
• Season 1 activity: 12,750 * 1.3 * 1.1 (Solflare bonus) = 18,217.5 points

Total: 43,717.5 points

Maximum Participation

• Cross-chain transfers: $1,000 in fees Points: 1,000 * 100 = 100,000 points
• IaaS fees: $500 in fees Points: 500 * 30 = 15,000 points
• Referrals: Brought in users generating 50,000 points Bonus: 50,000 * 0.25 = 12,500 points
• Integration Partner: Users generated 100,000 points Bonus: 100,000 * 0.25 = 25,000 points

Total base points: 152,500 points

Assuming mixed tier participation:

• Tier 1 (30% of activity): 45,750 * 3 = 137,250 points
• Tier 2 (40% of activity): 61,000 * 2 = 122,000 points
• Tier 3 (20% of activity): 30,500 * 1.5 = 45,750 points
• Tier 4 (10% of activity): 15,250 * 1 * 1.5 (deSwap LP bonus) = 22,875 points

Total: 327,875 points

Conclusion

Estimated Range

• Minimum: 1,000 points with $10
• Active User: 43,717.5 points with $150
• Maximum: 327,875 points with $1,500

According to Whales Market, $DBR is currently selling on the premarket at $0.01 but was at $0.05 3 months ago. The campaign ran from April 9, 2024 to July 23, 2024, which is 15 weeks or 105 days. We will do an APY and ROI analysis for both scenarios;

If deBridge points is $0.01;

Minimum: 1,000 points = $10 (with $10 cost)

• ROI = ($10 — $10) / $10 x 100% = 0%
• APY = (1 + 0)^(365/105) — 1 = 0%

Active User: 43,717.5 points = $437.17 (with $150 cost)

• ROI = ($437.18 — $150) / $150 x 100% = 191.45%
• APY = (1 + 1.9145)^(365/105) — 1 = 4020.15%

Maximum: 327,875 points = $3,278.75 (with $1,500 cost)

• ROI = ($3,278.75 — $1,500) / $1,500 x 100% = 118.58%
• APY = (1 + 1.1858)^(365/105) — 1 = 1415.48%

If deBrige points is $0.05;

Minimum: 1,000 points = $50 (with $10 cost)

• ROI = ($50 — $10) / $10 x 100% = 400%
• APY = (1 + 4)^(365/105) — 1 = 26,800.04%

Active User: 43,717.5 points = $2,185.87 (with $150 cost)

• ROI = ($2,185.88 — $150) / $150 x 100% = 1,357.25%
• APY = (1 + 13.5725)^(365/105) — 1 = 1,108,222.20%

Maximum: 327,875 points = $16,393.75 (with $1,500 cost)

• ROI = ($16,393.75 — $1,500) / $1,500 x 100% = 992.92%
• APY = (1 + 9.9292)^(365/105) — 1 = 407,590.90%

Airdrop Anticipation

From the community, there is buzz about the upcoming airdrop with users clamouring to hold the deBridge $DBR token before the launch and others getting tired of waiting for the launch;

From Telegram, more users enquire about the potential airdrop;

Community Feedback

The community response to the deBridge Points program was generally positive until they announced the season 2 campaign and then we saw mixed reviews. Some users anticipate the next season and the potential while some saw it as a greedy and time-wasting venture by deBridge before the airdrop;

Then let’s look at some negative comments from the community that arose after the information about season 2;

Conclusion

deBridge’s approach to cross-chain interoperability, coupled with its well-designed Points program, has put it in a good position in the DeFi space. By focusing on genuine usage and loyalty, deBridge has created a system that encourages long-term engagement and ecosystem growth.

However, we are yet to see how they can provide a more sustainable form of users. If you observe after the launch of season 1, the number of users drops daily, especially after the announcement of season 2. What would deBridge do going forward?

As we move into Season 2 of the deBridge Points program, users can expect continued rewards for their participation. The introduction of a new league system and potential adjustments to multipliers suggest that deBridge is committed to evolving its incentive structure to best serve its community and try better to retain them in the long term.

With the eventual launch of the DBR token and the transition to a DAO governance model, deBridge is poised to further decentralise its operations and empower its community.

Disclaimer:

The information provided in this article is for informational purposes only and reflects the research and opinions of One Click Labs. It should not be considered financial, legal, or investment advice. Airdrop participation involves risks, including potential loss of funds, and readers are encouraged to conduct their own due diligence. One Click Labs does not endorse or guarantee the success of any project mentioned and is not liable for any losses incurred due to airdrop participation or reliance on the information provided.