W3P: DeFi Referral Vaults
October 18th, 2022

As the 🐻 market sets in, wallets/dapps/protocols will be exploring new ways to monetize. Referral vaults might be a one way.

Let's say you're a DeFi wallet that helps new crypto users deposit funds into DeFi protocols to earn yield. What if you could earn some percentage of their yield for referring them?

Referral vaults could be a modified version of ERC-4626 where the accrued tokens are split between multiple wallet addresses: some % to the depositor and some % to the referrer. So if you're a hot wallet app with 1M users who each deposit 100 USDC...and you split earned yield 50/50 with the depositor, you could be earning ~$2M assuming a 4% APY. In bull cycles this gets even more juicy and doesn't take into account protocol token rewards.

Referral vaults could be built on top of Aave, Compound, Lido, etc. and possibly use 0xSplits for the yield earnings break out. Users pay for the convenience and possibly yield optimization.

Web3 Pitches (W3P) are short product write-ups that describe an emerging problem or opportunity in the Web3 space and proposes a minimal-viable solution that could be tested and iterated with users. The pitches are presented in screenshot essay form, which is meant to be short enough to be consumed on one page of a mobile screen. :-)

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