[RFC] ETH Plus (ETH+) Growth Strategy by 0xSleepy


This document outlines the proposed growth strategy for ETH+ aimed at enhancing its integration, utility, and Total Value Locked (TVL) within the decentralized finance (DeFi) ecosystem. ETH Plus (ETH+) is a safety-first diversified ETH earnings index. Our objective is to establish ETH+ as a cornerstone in DeFi applications, emphasizing strategic integrations, robust risk management, and proactive community-driven growth initiatives.

Strategic Objectives

  • Enhance ETH+ Integration and Utility: Promote the adoption of ETH+ across diverse DeFi platforms through seamless and strategic integrations.
  • Increase Total Value Locked (TVL): Elevate the value and security of ETH+ protocols to attract and retain investments, enhancing the overall stability of the system.
  • Community Engagement and Governance: Foster greater community involvement in governance decisions to align with and ensure sustainable growth.

Contributor Introduction: 0xSleepy

Hello, I’m 0xSleepy. Active in crypto since spring 2020 and a contributor to DeFi since DeFi summer. My contributions span across projects like Yearn, Harvest, Spool, Alchemix, and more. I bring deep knowledge of protocol growth dynamics across market conditions, emphasizing the importance of onchain markets for global financial accessibility.

Philosophy on ETH+ Growth

Emphasize the dualism of growing both a product and a community, aligning progressive growth with trust. Acknowledge the pivotal role of the community in advocating for ETH+, expanding its network effect, and supporting team initiatives.

Governance and Community Engagement

Objective: Strengthen the ETH+ DAO’s decision-making process and enhance community involvement to drive sustainable growth.

Growing Product Competitiveness

Objective: Position ETH+ as a competitive player in the DeFi space with a comprehensive focus on collateral diversification and composability.

  • Strategies:
    • Identify new growth verticals, potential chain integrations, and innovative collateral options.
    • Recommend strategies for enhancing collateral diversification and DeFi integrations.

Phases of Growth: The DeFi Flywheel Effects

Phase 1: Building a Growth Flywheel Effect

  • Overview: Implement a flywheel effect strategy to create a self-reinforcing cycle that boosts TVL growth by leveraging composable integrations to enhance the utility and adoption of ETH+ products.
  • Mechanics of Flywheel:
    • Composable Integrations: Increase the utility for ETH+ through more composable integrations focusing on areas such as lending, CDP collateral, Leverage, and more
    • Increased Swap Activity: Enhanced utility drives higher swap activity around LP pools, raising transaction fees.
    • Boosted LP APY: Higher transaction fees improve liquidity provider (LP) APY, attracting more liquidity providers.
  • Impact and Outcome: Increased liquidity and TVL enhance the protocol’s attractiveness, fostering more integrations, partnerships, and a shift from outbound to inbound marketing strategies. This supports an organic growth environment powered by continuous enhancements.

Phase 2: Integrating Key Opinion Leaders (KOLs) and Strategic Liquidity Partners (SLPs)

  • Overview: Leverage the influence of Key Opinion Leaders (KOLs) and form alliances with Strategic Liquidity Partners (SLPs) to extend ETH+'s reach and impact.
  • Strategies:
    • Engagement with KOLs: Partner with influential figures in DeFi to educate and inform the community about ETH+.
    • Partnerships with SLPs: Secure partnerships with liquidity providers to ensure substantial and stable liquidity essential for ETH+'s scalability.
    • Marketing Synergies: Maximize reach and effectiveness through coordinated marketing efforts, including co-branded content and joint webinars.
  • Impact and Outcome: Enhanced brand visibility and credibility within the DeFi community, leading to broader market penetration and an enhanced reputation.

Go To Market, Business Development, and Social Media Strategy for ETH+

Target Audience: DeFi Protocol Treasuries

  • Focus: Adding our product to DeFi Protocol Treasuries as a long-term held product to generate a long diversified staked yield from multiple sources in 1 token.
  • Market Insight: Approximately 50% of ETH held in DAO treasuries is in LSTs like stETH or mETH, highlighting a significant opportunity for ETH+ to offer a diversified exposure product attractive as an addition to their treasury.

Market Problems and Solutions

  • Problem Statement: There’s a crucial need for further diversification within LST products to mitigate concentration risks associated with single protocol exposures.
  • Solution Offered by ETH+:
    • Diversification Strategy: ETH+ diversifies yield across multiple pillar stakedETH products within the DeFi ecosystem, which not only aids in risk management but also enables onboarding of competitive yields.
    • Product Resilience: Overcollateralization with RSR provides a buffer, enhancing product resilience against market volatility.
    • Governance Engagement: A robust and active governance system within the reserve community fosters broader participation and enhances protocol reliability.
    • Redemption Process: ETH+ can consistently be redeemed for its underlying collateral, providing DAOs with the flexibility to manage their funds securely. This autonomy allows them to operate independently of liquidity pools.

ETH+ Risk Management

  • Objective: Design Risk Frameworks focused on pricing and determining the best collaterals to include in ETH+ to diversify the underlying collateral prudently.
  • Tactics
    • Risk Frameworks: Building a risk framework focused on adding the best yielding products that implemented best practices to ensure safe yielding results such as audits, bug bounties, open source code, publicly available strategies
    • Consistent Communication: Regular discussions with the community on collateral, its current performance, and the addition of newer collateral. Regular deliberation is key for a consistently growing community.

Business Development Strategy

  • Objective: Aggressively expand ETH+'s integration within the DeFi ecosystem by partnering with key protocols, thereby increasing liquidity provider activity and overall protocol engagement.
  • Tactics:
    • Proactive Partner Integration: Continuously identify and connect with potential partners to integrate ETH+ into their systems, enhancing mutual growth opportunities.
    • Collaborative Development: Work alongside partners to co-develop features that meet mutual needs, ensuring deeper integration and better alignment of goals.

Social Media and Community Engagement Strategy

  • Objective: Bolster ETH+'s visibility and engagement through proactive and strategic social media initiatives.
  • Content Strategy:
    • Regular Updates and Announcements: Keep the community informed about new developments, governance decisions, and product enhancements.
    • Community Highlight Posts: Regularly feature community feedback, comments, and contributions to foster a sense of belonging and appreciation.
    • Educational and Partnership Features: Create spaces for learning and discussing the benefits of partnerships and collaborative projects with ETH+.
    • Expert Discussions and Concept Evaluations: Host sessions with experts to dissect new ideas and trends in the DeFi space, positioning ETH+ as a thought leader.
    • Engagement in Trending Topics: Actively participate in broader DeFi discussions on trending topics to maintain relevance and presence in the community.

Connect with Me - Let’s Grow Together!

Hello, ETH+ community and fellow DeFi enthusiasts! I’m excited to dive deeper into our vibrant ecosystem and eager to learn from each of you. As part of this journey, I’m here not just to strategize but to build meaningful relationships.

Share Your Thoughts: Have ideas on enhancing ETH+? Your feedback is invaluable—please share freely. Also, share your DeFi experiences; what excites you about the future, and what you expect from ETH+.

Just Say Hi: Feel free to reach out for a casual chat—whether it’s about the latest in DeFi, blockchain challenges, or just your favorite crypto memes, I’m here to engage.

We will be hosting an AMA next week on the Reserve Discord to meet me and ask questions