Instadapp can make ~2% on all volumes thanks to dynamic referral payments from dApps in Cinch’s referral marketplace. This post suggests implementing an initial pilot program with two products. No additional resources are required from Instadapp to move forward with this pilot program.
Monetizing a non-custodial platform is difficult. Monetizing a non-custodial platform without negatively impacting the user experience is even harder. Instadapp can overcome this challenge by maximizing referral payments from dApps. Cinch turns every dApp into an affiliate partner and delivers ~2% of TVL to distribution platforms like Instadapp. Cinch’s vaults act as middleware and require no development resources to use.
One way to monetize yield products is to charge users. The problem is that charging users is zero sum: Instadapp profit comes at the expense of user profit. This creates a strong incentive for users to disintermediate Instadapp and interact with the underlying protocol directly.
A more sustainable way to monetize is to charge dApps for distribution.
All financial products need distribution, and dApps are no exception. dApps are willing to pay for distribution, and Instadapp is the ideal distribution partner. Instadapp can generate ~2% on all volumes deployed into DeFi thanks to dynamic referral payments from dApps.
Cinch enables dynamic referral payments from any DeFi product. Referral payments are immediately compatible with any platform partner, including Instadapp.
Receiving maximized referral payments from dApps requires no additional integration work from Instadapp. 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.
- Instadapp makes ~2% on all volume deposited into these products
- Sizeable new revenue stream directed 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
There are no known drawbacks to implementing this proposal. However, as with any new program, there may be unforeseen challenges that arise.