Traditional software platforms track onsite user behavior with cookies and local storage, relying on tools such as Google Analytics, Mixpanel, and Hotjar. On the other hand, DeFi protocols must uncover the movement of tokens and wallet activity to get a complete picture of their UX.
The unique UX needs of DeFi projects
User experience (UX) is a term you might have heard tossed around in various industries, from tech to marketing. But what exactly is UX?
User experience refers to a person’s overall feelings and attitudes when using a product or service. Good UX leads to satisfied users with the product or service, while bad UX can result in dissatisfaction and even frustration. Businesses need to consider UX to create products that will appeal to their target audience and satisfy their needs.
Traditionally, platforms segment users and run experiments (A/B tests) to optimize the experience of their product using 1st party data. It shows what users click on, avoid and respond to on the webpage.
This additional data source gives blockchain businesses an enormous opportunity to understand their users—if they can harness it.
- Business decisions (such as APY changes or even UI re-designs) can cause users to lose or gain confidence in a project, affecting the pool composition and TVL.
- Different marketing strategies can attract institutional investors and whales, or generate grassroots interest from retail traders. With on-chain data from DeFi 360, projects can uncover the user segments their project draws.
- World events have a massive impact on DeFi projects, but only by comparing metrics side-by-side on the same timeline can developers understand how this impact varies from project to project.
“Data analytics has allowed organizations to move away from gut feeling when making business decisions, enabling faster growth and better customer experiences. This capability will become crucial for blockchain companies in the future,” said X.
Traditional UX focuses on interface, DeFi focuses on value
Liquidity pools are an integral part of the world of blockchain. In short, liquidity pools are a way of decentralizing exchanges and making them more secure. They work by allowing users to pool their money together to create a larger fund that can be used to purchase tokens or assets. This makes it easier for people to buy and sell cryptocurrencies and helps keep the market stable. They are also an investment vehicle to generate income on crypto assets.
Traditional UX tools can still help DeFi websites become more convenient and useable on the front-end. However, blockchain developers need to understand how users perceive their pools’ value, stability, and security.
That’s why DeFi 360 has granular liquidity pool breakdowns which show the trader profiles of different pools, trading activity, and more.
About Footprint DeFi 360
It provides easy access towards user retention monitoring, user activity in multiple regions and time zones, multichain, and cross-chain analysis.
Various projects can get a 360 angle perspective to acquire data insight,
increase agility, lower costs and accelerate innovation. It serves for better
decision-making and execution of project owners.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.