A Checklist to Grow Your L1/L2 Chain’s TVL and MAU

At our recent EthCC 2024 side event “L1/L2 Chain Builders: How to Grow TVL & MAUs” in Brussels, industry experts and web3 developers gathered to discuss strategies for growing Total Value Locked (TVL) and Monthly Active Users (MAU) for L1 and L2 chains.

Here, we present a comprehensive list of 30 crucial steps that emerged from these discussions, aimed at helping L1/L2 chain builders achieve their growth objectives.

30 Crucial Recommendations to Follow:

  1. EVM Compatibility: Build on EVM-compatible blockchains for easier deployment and interoperability.
  2. Layer 1 vs. Layer 2: Weigh the benefits of L1 and L2 blockchains, considering scalability and security.
  3. Unique Value Proposition: Offer unique value propositions to stand out from existing solutions.
  4. Focus on TVL and MAUs: Prioritize growing TVL and MAUs to attract investors and partners.
  5. Grants and Incentives: Leverage grant programs and incentives to bootstrap your project.
  6. User and Developer Attraction: Address the “chicken and egg” problem by attracting both users and developers.
  7. Specialized Strategies: Implement specialized strategies like liquid ETH staking to carve out a niche.
  8. Platform Evaluation: Choose blockchain platforms based on user base, developer tools, and ecosystem support.
  9. Adaptability: Be ready to adapt strategies based on changing investor priorities.
  10. Innovative Tokenomics: Design innovative tokenomics and incentive structures to attract and retain users.
  11. Cross-Chain Compatibility: Ensure cross-chain compatibility and interoperability in your product design.
  12. Market Trends: Stay informed about market trends and competitor strategies.
  13. Developer Support: Provide robust support and resources for developers, including SDKs and documentation.
  14. Liquidity Pools: Set up liquidity pools across different chains to tap into broader liquidity.
  15. User Experience: Ensure a seamless user experience with easy switching between chains.
  16. Investor Profiles: Understand the different categories of investors contributing to TVL.
  17. Trust and Reputation: Build trust and a good reputation to attract early supporters.
  18. Early Rewards: Offer early rewards to kickstart liquidity and user attraction.
  19. Risk Management: Implement robust risk management frameworks.
  20. Event Participation: Attend industry events to connect with major liquidity providers and partners.
  21. Due Diligence: Conduct thorough due diligence and provide detailed project information.
  22. Operational Setup: Establish operational setups to facilitate transactions with large investors.
  23. Market Conditions: Stay adaptable to changing market conditions and yield expectations.
  24. Established Track Record: Build an established track record to attract investment.
  25. Innovative Features: Offer innovative features or modifications to existing protocols.
  26. Opportunity Cost: Highlight unique benefits and potential returns to address investor opportunity cost concerns.
  27. LP Sensitivity: Understand LP sensitivity and risk tolerance in investment strategies.
  28. Multi-Sig Approvals: Implement multi-signature approval systems for fund requirements.
  29. B2B Approach: Adopt a B2B approach with direct negotiations for effective fundraising.
  30. Liquidity Providers: Engage with liquidity providers to bootstrap liquidity and TVL.

By following these steps, L1/L2 chain builders can attract more users and investors to their platforms and effectively increase their Total Value Locked metrics in a few months.

Additionally, we would recommend to regularly check up on competitor projects’ health to avoid risks and instead incorporate the best practices that have proved to be successful.

About Protofire:

Protofire drives growth in TVL and usage for Web3 projects.

Our developer DAO ensures aligned incentives. Utilizing in-house and third-party components, we decrease costs and increase quality. We ideate, implement, and support long-term growth solutions through strategy, compatibility, and marketing. Serving top-tier L1/L2 chains and DeFi protocols, our outcome-driven engagements deliver measurable success.

We design and deploy blockchain solutions for L1/2 blockchains and DeFi protocols, leveraging strategic planning, compatibility, and marketing to drive their long-term TVL and usage growth.

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