Case Study: Layer3 Impact on Ondo

Nov 18, 2024

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by Ignacio Martínez Guimerá (VP of BD)

Ondo Finance, a pioneer in regulated Real World Assets (RWA), partnered with Layer3 to accelerate adoption of their groundbreaking USDY token - a first-of-its-kind stablecoin backed by US Treasury securities. Through strategic campaign design, Layer3 transformed complex financial innovation into accessible opportunities for users. The partnership's carefully orchestrated user journey not only introduced USDY to thousands of new users but also achieved strong ecosystem growth within just 30 days.

Key Impact Metrics of Layer3 on Ondo:

  • New TVL: $1,041,456

  • Number of Users: 14,769 users with 99.82% being new users.

  • Retained TVL: $960,030 net TVL retained

  • Retained Users: 4,931 retained users with 33.4% USDY retention rate

  • Network Activity: 29,038 transactions driving $1,142 in gas fees from new users

Ondo Finance stands out through its strategic partnerships with institutions like BlackRock and its unwavering commitment to regulatory compliance. This institutional-first approach has established Ondo as a trusted bridge between traditional finance and DeFi, creating a solid foundation for building regulated RWA products. The complexity of these regulated TradFi-based products, while necessary, required a new approach to user acquisition and retention.

By creating an attention-driven marketplace, Layer3 efficiently connects protocols with quality users through a sophisticated system of attention capture, identity construction and verification, and strategic incentives. The integration of strategic incentives further optimises this distribution process. Rather than simply throwing rewards at users, Layer3's system precisely targets incentives based on user behaviour and engagement quality, ensuring that resources are efficiently allocated to drive sustainable adoption.

The results speak for themselves: users who completed the educational journey didn't just swap into USDY for rewards—they understood its value proposition and chose to maintain their positions. With a 33.4% retention rate and over $960,000 in retained TVL, the program demonstrated that when users truly understand a product's utility, they become long-term participants rather than short-term reward seekers.

Layer3's partnership with Ondo Finance demonstrates how sophisticated distribution protocols can drive meaningful adoption in DeFi. By focusing on quality attention capture and strategic incentive distribution, Layer3 has created a sustainable model for protocol growth.