Introduce more risk to the Karura platform to increase number of DAU's / 'degen' ecosystem growth

Good Ladies and Sirs,

Many of you may know me from our community, I’m clearly a big fan, large bag holder, LP, Ambassador ect.

But we need to take action regarding Karura very low Daily Active Users ( DAU’s ). We cannot let our younger cousin wilt due to the Acala rollout.

our current problem: We currently are averaging ~75 DAUs each day. Let’s all be honest here, this is major issue. We can debate whether coin price = project success. But I don’t think anyone here would consider 75 people each day using KAR as a success.

Unlike many people, I DO NOT believe we should give up hope, we are only at the beginning and as I have learned many time throughout my life, one shuffle of the deck and our luck can change to favour us.

SO I propose a significant increase in the risk profile of the Karura Dapp.
Our mission statement is to ‘expect chaos’ so let’s introduce some.

I have been pondering many changes that we can make to the platform, the goals of these changes are detailed below:

  • Increase DAUs, we need users coming back everyday to ‘check’ the platform this will increase use of our other products.

  • Generate ‘hype’, while I hate the hype train that is crypto sometimes, I do believe we need to create a simple product that can be picked up by Degen twitter accounts for some free marketing.

  • Generate revenue for our treasury, Any post I make revenue generation for the protocol will be one of the goals, that’s just my nature due to my background in old school finance.

MY proposal ( I’m very happy if anyone else has any other good ideas, please comment them below / ping me on discord and we can discuss )

Introduce a Karura Betting exchange/ product - KBET
I have a background in gambling so we’re on my home turf here. I will lay out the products features below.

  • We set up a system of users ‘laying’ lines on specific bets that can be independently confirmed by third parties / oracles then settled via smart contract.

E.g.
Closing Price of DOT / any asset on X date
winner of US Election
Sports games ( remember huge populations of people live in areas where gambling is not allowed on centralised entities ) e.g. superbowl
A traditional US roulette wheel.
Bets on the floor price of NFT collections ( This would basically mean people could short NFTs << something I have not seen on offer in the market currently )

Now I do not propose Karura becomes ‘the house’ as this is very time consuming and probably would be very hard to automate.

BUT what we could easily do is set KBET up in a similar fashion to the BetFair exchange.

i.e. users are betting against each other, we just facilitate the wagers and charge a 1.5% fee on all bets.

Personally I don’t think we should roll this out on Acala, as many institutions have an ESG investment policy and ‘gambling’ would be something that they will avoid, this is not a risk on Karura as institutions will avoid investments into anything that has ‘Chaos’ attached to it.

TLDR: We need to increase DAUs, I propose a large increase in the risk profile of the platform via the introduction of a betting exchange called KBET.

I am open to any other risky ideas that we could float on just Karura to give the platform a unique feel.

Ciao for now,

Regards,

TheOyster :watermelon:

7 Likes

I’m also worried. It seems that the ACALA team has been immersed in the world they imagined. There is no Chaos, no Risk.

I’ve been a Karura supporter since the testnet. While I agree a prediction market may increase usage, I don’t love the idea of turning Karura into a would-be casino. Betting markets attract short-term gamblers, not investors. With the ending of the kUSD-KSM rewards pool today, there are THREE (3), active liquidity pools, and 6 tokens (5 if you consolidate lKSM->KSM). How about adding tokens & rewards programs so there’s actually something to use? Without RMRK’s announcement to migrate to Karura, what else is going on to attract users? DeFi in general has been hit hard in a down market, and this has disadvantaged the platform. Liquid KSM was a great innovation, but there’s been nothing new to promote “stickiness” of the user base let alone attract new investment.

I know there is some pushback to the whole “gambling” idea but I think you are spot on. Karura needs to make a splash and stir up some Choas. Even a fantasy sports feature (something like Underdog Fantasy: Daily and Season-Long Fantasy Contests) would create stickyness and generate a lot of buzz

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Not a huge fan of betting markets, and if anything might further preclude us from engaging with markets that have very particular gambling laws.

However, I’m all for a greater degen eco-system. This could be achieved by:

  • Tighter financial parameters to allow for higher capital efficiency (at a cost of more risk to the protocol/users)
  • New leverage products added
  • Money market to borrow assets, to open up the opportunity to short assets

Only the first item above actually needs a chain upgrade, the other two could be simply achieved by onboarding a protocol via the EVM+ route.

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Please consider KAR rewards for swaps on the Karura DEX (similar to Zenlink DEX Zenlink). It potentially can increase DAU/MAU.

anyone from the team willing to share views on the topic ?

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