When it comes to the adoption of DeFi, it’s no surprise than many new products struggle to attract new users. Whether it’s the technical knowhow, onboarding hurdles or simple product design, there are a number of areas where DeFi protocols can improve.
One new project – SimpleID – is looking to do just that.
By offering a Growth Handbook and a metrics dashboard, SimpleID looks to “Amplify engagement and retention for your blockchain application”.
What’s unique about SimpleID is that tracking tools can be baked directly into applications through an SDK, essentially allowing Web3 applications to communicate with their users in a privacy-preserving way.
How Does it Work?
Users can login to an application using the SimpleID non-custodial wallet (not required but recommended). Developers then access their SimpleID dashboard which allows their product to leverage:
- In-App Notifications
- Email Communication
Once connected, SimpleID will aggregate on-chain data such as Number of Users, Last Seen, Wallet Balance, Total Transactions, Smart Contract Transactions and more.
SimpleID can also aggregate segments based on interactions with other smart contracts, meaning you could use SimpleID to analyze which of your users have an active Maker Vault or interest accruing via the Dai Savings Rate.
A full overview of SimpleIDs capabilities can be viewed through the following tutorial:
How is this DeFi?
Simply put, new DeFi protocols lack tooling to effectively track user activity on their protocols. While deploying smart contracts and offering compelling dashboards to interact with those smart contracts is great, we need non-technical ways for marketing teams to further engage and interact with their users.
What’s great about SimpleID is that privacy is preserved, meaning that those providing emails are not linked to any given wallet address. This means that it becomes easier to offer specialized notifications and campaigns to users based on their level of engagement, amount of capital or other smart contract interactions without storing sensitive data.
From there, DeFi products can begin running A/B testing, slowly rolling out new features that may be more suited for new users than their more advanced traders. In time, we can envision a system in which notifications are being sent to Maker Vault holders letting them know that their Vault may become at risk and that further collateralization is required.
To tie it all together, SimpleID allows for user interactions without breaking the core tenants of decentralization and data privacy.
Why Should I Care?
As a blockchain product founder or research analyst, SimpleID is a free solution to learn more about users in an intuitive fashion.
Seeing as the beta just launched, this is a great opportunity to leverage specialized attention from the core team.
If one thing is clear, tools like SimpleID are the first stepping in aiding to better user engagement. As products like simple continue to grow, we can expect that the user experience from partnered projects will grow as well.
Cooper is focused on building compelling blockchain products. He currently works as the managing director at Fitzner Blockchain Consulting and is a contributor to DAOs like MetaCartel and Moloch. He is an active member of the Ethereum community and has a strong interest in for-profit businesses such as The Block Crypto and Messari.