Project Name: AlphaDrop
Project Track: DeFi
Team Name: Maaz
Team Member(s): 1 @maaz
Devpost Project Link: https://devpost.com/software/alphadrop
Project Website: https://alphadrop.netlify.app/
Project Demo : Video
Project Github : Github
Problem:
The problem with standard airdrops is that protocols often distribute tokens that users quickly sell off for profit , leading to a lack of sustained engagement and involvement within the protocol. This rapid selling behavior undermines the long-term viability and community building potential of the protocol.
Project Goal:
The project seeks to transform DeFi airdrops by offering vested positions via personalized links instead of tokens, promoting long-term engagement and community commitment. It aims to build a deeper connection between users and the protocol.
Project Value:
- Enhanced Engagement: AlphaDrop prioritizes increasing user engagement and retention within protocols. By rewarding vested positions, it encourages users to actively participate and commit to the protocol, fostering a deeper connection and sustained involvement.
- Community Building: AlphaDrop is dedicated to strengthening the community surrounding DeFi protocols. Through incentivizing users to hold vested positions, it promotes a sense of ownership and commitment among community members, fostering collaboration and collective growth.
- Innovative Airdrop Model: AlphaDrop sets out to establish a new standard for airdrops in the DeFi space. Its innovative approach introduces a more meaningful and sustainable reward mechanism, aligning with the ethos of decentralized finance and paving the way for a more inclusive and engaged ecosystem.
Project Applications:
AlphaDrop can serve as a powerful tool for rewarding existing users and attracting new participants to DeFi protocols. Imagine offering a warm welcome gift to new users, onboarding in your decentralized finance protocol. This approach not only incentivizes users to join but also encourages them to actively engage with the protocol.
Furthermore, picture a scenario where a DeFi protocol attends a conference and distributes QR codes to attendees. These QR codes allow individuals to claim a vested position within the protocol, instantly involving them in its ecosystem. This innovative use of airdrops transforms traditional engagement strategies, fostering immediate interaction and long-term commitment among participants.
AlphaDrop’s versatility extends beyond simple token giveaways, offering a unique opportunity to cultivate community involvement and loyalty within the rapidly evolving DeFi landscape.
Project details and working :
1. Creation of Vested Positions: The process begins with the creation of vested positions within DeFi protocols. For the purpose of our demonstration, we have chosen to implement a deposit position within our designated DeFi protocol, (LendingFi).
2. Eligibility Criteria Implementation: To ensure that the distributed positions are claimed by genuine and committed users, AlphaDrop allows protocols to implement eligibility criteria. These criteria may include proof of personhood, some token ownership requirements , or a history of prior transactions within the protocol. By setting these criteria, AlphaDrop ensures that only genuine and committed users can claim their positions.
3. Generation of Unique Hashed Passwords: Security is a top priority for AlphaDrop. To ensure secure access to the vested positions, AlphaDrop generates unique hashed passwords for each position. These passwords are encrypted and cannot be accessed by unauthorized users. They serve as a key to unlock the vested positions and are an integral part of the claiming process.
4. Distribution of Links: Once the positions are created and the hashed passwords generated. Personalized links containing the hashed passwords are distributed via email, text messages, or QR codes by the protocols .
5. Claiming Process: Users can claim their vested positions by accessing their personalized links inputted with the corresponding hashed password. Once authenticated, users simply click on the claim button and confirm the transaction. This activates their position within the protocol, reflecting ownership within the designated DeFi protocol.
6. Reflection in DeFi Protocol: Upon successful claiming, the positions are reflected within the designated DeFi protocol. It’s important to note that ownership of these positions is initially held by AlphaDrop until the lock-up period expires. This mechanism ensures that users have vested interests in the protocol and encourages long-term engagement.
7. NFT Representation: To provide users with tangible proof of their vested positions, AlphaDrop issues non-fungible tokens (NFTs) representing their ownership. These NFTs serve as digital certificates of ownership, granting users the ability to withdraw their funds once the lock-up period concludes. This adds an additional layer of transparency and trust to the claiming process.
8. Encouraging Participation and Commitment: By distributing vested positions instead of tokens, AlphaDrop incentivizes users to actively participate and remain committed to the DeFi ecosystem. This approach fosters a sense of ownership and responsibility among users, enhancing community engagement and sustainability in the long run.
Project Test Instructions:
- Open the dapp and create some positions as a protocol within the connected DeFi protocol (currently lendingfi for this demo).
- Specify lock-up periods and allocate the amount and token (e.g. USDT) to each position.
USDD token address on mainnet
Contract Address 0x9409358b1cb54ae10bab80c5983c940d771d6b4d | BTTCScan - Share the personalized link containing the hashed password.
- Now access the received link and follow the instructions to claim the vested position.
- Verify successful activation of the position within the connected DeFi protocol.
- Monitor the position’s status to observe the lock-up period.
(Ensure that withdrawal of the position is restricted until the lock-up period expires.) - After the lock-up period ends, you can withdraw the vested position holding your nft.
Project Images:
Smart Contract links:
Project Milestones:
1. Expanding AlphaDrop to support various types of DeFi positions and protocols (mid of june):
- For this hackathon, AlphaDrop is currently focused on facilitating depositing and withdrawing positions from our demo DeFi contract, LendingFi (created for testing purposes). However, we built it in a modular way that it would support a diverse range of DeFi protocol’s positions in the future.
*Allow any protocol to involve , airdrop and activate different types of their vested positions.
**2. Deploying on btt and Tron Mainnet (mid of june):**
- Prepare for the official launch of AlphaDrop on the mainnet, ensuring all smart contracts and frontend interfaces are thoroughly tested and optimized for production.
- Enable real-world usage of AlphaDrop by DeFi projects and community members, allowing for live airdrop campaigns and user interactions.
3. Implementing Zero-Knowledge Proof (zk-proof) Mechanism (End of June or first week or july) :
- Implementing zero-knowledge proof (zk-proof) mechanisms in AlphaDrop enhances security by verifying the proof of personhood, ensuring that individuals cannot claim multiple positions even with access to multiple links. This prevents fraudulent activity and maintains the integrity of airdrop activations.
- Require users to provide on-chain identity proofs and previous transaction history on the protocol through secure zk-proof protocols before claiming the airdrop, ensuring fair distribution and engagement.
4. Conducting Audits and Security Checks (After June):
- Perform comprehensive audits and rigorous security checks on AlphaDrop’s smart contracts, frontend components, and backend infrastructure.
- Identify and address any potential vulnerabilities or security risks to safeguard user funds and ensure the integrity of the AlphaDrop platform.
Future Roadmap :
. Scalability and Security: Continuously improve scalability and security measures to support a growing user base and ensure the robustness of the AlphaDrop platform.
. User Adoption: Gain traction and user adoption within the DeFi community by demonstrating the benefits of vested DeFi positions as rewards compared to traditional token airdrops.
. Partnerships: Establish strategic partnerships with DeFi protocols to expand the reach and integration of AlphaDrop across multiple platforms and ecosystems.
