One of the new technologies that is coming to life with the rise of blockchain is decentralized finance, also known as “DeFi.” Far from being a buzzword, DeFi is now considered the future of finance by many, and the potential of this ambitious technology —while unknown— seems quite promising.
As the popularity of DeFi continues to grow, new startups and projects are entering the financial market with every passing minute. And, of course, to succeed in this new and complex landscape, they need a solid and DeFi-specific marketing strategy to help them build awareness and reach their goals.
In this article, we’ll delve deeper into the meaning of decentralized finance and will analyze how DeFi companies are starting to market their ambitious products, solutions, and services.
What is DeFi and why should I care?
Simply put, decentralized finance is the term used to refer to financial services and products on public blockchains. The goal of this emerging technology is to take some of the control away from banks and financial institutions to place it back in the hands of users.
DeFi allows people to do pretty much everything banks do without the need to resort to third parties or fill out endless paperwork. That includes earning interest, borrowing and lending money, taking out loans, trading assets, and so on. This technology is also much faster than traditional alternatives and, as it works on the blockchain, it’s distributed, secure, and transparent.
All in all, it’s a digital alternative to Wall Street, and it holds a lot of promise in terms of freedom, flexibility, and transparency, so it’s no wonder why people are increasingly betting on it as the new paradigm of financial services.
A short guide to DeFi marketing
As we mentioned before, new DeFi startups and projects are entering the market every day, so we’re starting to get a better grasp on the way they market their services and the most efficient tools to do so.
Let’s take a look at some of the DeFi marketing trends that are defining the agenda of startups and organizations in this field.
Giveaways and airdrops
Giveaways and airdrops are two of the most efficient marketing tools in the DeFi landscape at the moment, as they help build awareness and spark a conversation around a given startup or project.
Although they are sometimes used as synonyms, giveaways and airdrops are not the same. They both involve giving tokens to users for free or for something other than money —like subscribing to a newsletter or following the company on social media. But the difference is that in an airdrop campaign all or most users will receive tokens, while in a giveaway only a couple of users are selected and rewarded.
In recent months, we have witnessed many successful giveaways and airdrops. Let’s take Uniswap, for example. The company airdropped their token UNI to anyone who had used the protocol before September 1st, 2020. It was a way of rewarding users for their support, but it also drew a lot of attention to the project.
Social media presence
A strong social media presence is key in any business endeavor. But in the case of DeFi projects, they provide an added value that is hard to ignore.
While promoting your project on social media will allow you to put your work in the spotlight and bring more people on board, it can also help you build a strong community —which is an essential aspect in the success of any blockchain-based project at the moment.
A closely-knit community will help you move your project forward, and Discord is currently the best place to find like-minded individuals to build a community with. In fact, most respectable DeFi companies have a well-moderated Discord server where their users can interact and share their thoughts and insights, so you might consider joining in the fun.
DeFi trackers, ratings, calendars, and listings
Being listed on DeFi trackers, rankings and calendars can provide you with that much-needed organic traffic. These are useful tools for DeFi enthusiasts which gather relevant information and analytics about projects and companies, all in one place.
Some of the most popular DeFi trackers at the moment are DeFi Pulse and defiprime.com, but there are many others. If you want to list your project on one of these, you will need to provide them with all the relevant information your target audience may need to make an informed decision, including your white paper and roadmap, technical documentation, and information about the team.
SEO and content marketing
Content marketing is an often overlooked way to promote your DeFi business. With a properly mapped-out strategy, a well-structured blog, and clear SEO-optimized content, you can easily engage people and attract them to the DeFi world.
Ethereum, for example, has a comprehensive blog with all the information people need to understand this new paradigm. In fact, if you google “What is DeFi?,” one of the first hits is their blog post on the topic.
As we’re dealing with emerging technologies, there’s a massive gap of information. That means you have the opportunity to put valuable content out there explaining the main aspects of DeFi, blockchain, and crypto to your target audience.
By doing so, you will accomplish a two-fold purpose: you will help out confused internet browsers who are trying to understand what a token is, and you’ll significantly boost your engagement both with them and the more experienced audience, nudging your project towards success.
There are many ways in which you can market your DeFi project, and there’s a lot of room for creativity in this field. Apart from what we discussed here, you can resort to influencer marketing, paid ads, and brand mentions, among many other techniques to promote your DeFi products and services.
But there’s no secret recipe to success. So, regardless of the channels and techniques you choose for your DeFi strategy, you need to make sure your marketing efforts are aligned with your brand and values.
Curious about how to do that? We’ve got you covered! Let’s start mapping out your DeFi marketing strategy right away.