Leveraging On-chain Blockchain Analytics to Drive Growth for a DeFi Organization

Context and Challenge

Our client, a pioneering organization in the Decentralized Finance (DeFi) space, sought to maximize growth and optimize their product offerings. However, the competitive DeFi market and the need to make data-driven decisions presented significant challenges. The client required in-depth, on-chain blockchain analytics to identify growth areas, make strategic decisions, and implement effective data processes.

Our Approach

Red Souk responded with a comprehensive, customized strategy for on-chain blockchain analytics.

Market-wide Analytics: We investigated token swap volumes, transaction details, and user activity within the Solana ecosystem. The insights gathered helped the client’s executive team identify growth areas and select token pairs to prioritize.

Competitor Analysis: We performed a thorough analysis of competitor activities, evaluating volume, user base, and transaction frequency at the DEX and liquidity pool levels. This analysis offered a benchmark for the client’s growth and strategic planning.

User Behavior Analysis: We focused on high-volume and high-transaction users, identifying popular products and potential power users for targeted acquisition. The insights were then applied to competitor protocols, informing the client’s product roadmap and strategic decisions.

Data Science Stack: Beyond on-chain analytics, we deployed our expertise in building data pipelines, implementing ETL/ELT processes, and advancing product analytics.

Results

Our approach resulted in significant achievements:

The market-wide analytics informed strategic decisions, leading to optimal product development and identification of growth areas.

The competitor analysis provided a clear view of the market landscape, aiding growth benchmarking and strategic planning.

The user behavior analysis contributed to a surge in product usage by identifying and targeting power users.

The collaboration on data processes led to features generating over $2.57 million in annual contribution profit.

In conclusion, our expertise in on-chain blockchain analytics and data science significantly benefited the client, offering data-driven insights that drove growth and profitability in the competitive DeFi space.