Research Summary
The report discusses the user experience on Farcaster, a decentralized social media platform, and the emergence of Puffer Finance, a native Liquid Restaking Protocol (nLRP). The author compares his engagement on Farcaster with Twitter, highlighting the freedom and fun he experiences on the former. Puffer Finance’s impressive growth and its potential to solve slashing with its proprietary tool are also discussed.
Key Takeaways
Farcaster User Experience
- Increased Engagement on Farcaster: The author notes a significant increase in his activity on Farcaster compared to Twitter, with 296 casts, 1098 likes, and 41 recasts in a week. He attributes this to the platform’s newness and the freedom to post without social consequence.
- Quality User Base: Farcaster is seen as attracting a higher quality of user interested in using social media for its intended purpose, without the financial incentives that attracted grifters to platforms like Friend Tech.
- Channel Structure: Farcaster’s channel structure, similar to subreddits, allows users to engage in specific topics, creating a more efficient and productive social dialogue.
- Interactive Features: Farcaster’s features like Frames, which allow users to create interactive experiences and mint NFTs without leaving the app, are highlighted as potential game-changers.
Puffer Finance’s Emergence
- Impressive Growth: Puffer Finance’s total value locked (TVL) growth has been impressive, surpassing Renzo and Kelp and being second only to Ether.fi.
- Anti-Slashing Tool: With a grant from the Ethereum Foundation, Puffer is developing an “anti-slashing” tool to reduce the risk of slashing while enhancing capital efficiency. If successful, this could solve the fungibility issue across different Liquid Restaking Tokens (LRTs).
- Potential Leading nLRP: The rapid pace of TVL growth could indicate Puffer Finance’s potential to emerge as the leading nLRP.
Actionable Insights
- Monitor Farcaster’s User Engagement: Given the author’s positive experience on Farcaster, it may be worthwhile to monitor user engagement and growth on the platform, which could indicate its potential to disrupt traditional social media.
- Track Puffer Finance’s Development: Puffer Finance’s impressive growth and its potential to solve slashing with its proprietary tool make it a project to watch. Its success could have significant implications for the Ethereum ecosystem.
- Assess Impact of Farcaster’s Features: The impact of Farcaster’s unique features, such as Frames and channel structure, on user engagement and retention should be assessed. These could be key differentiators in the competitive social media landscape.
