The Ultimate Guide to Airdrops
To decentralize governance and encourage the involvement of early users, decentralized financial infrastructure protocols are increasingly resorting to token airdrops. The majority of the time, projects will "retroactively" grant these airdrops, which means that they will do so depending on the amount of time that you have spent using their services in the past.
As a result, this strategy will describe a number of new protocols that you may test out right now in order to position yourself for the possibility of receiving retro token payouts in the future!
It’s Raining Coins
If you are familiar with the crypto space and know where to search!
Back in January, I wrote the first "How to Earn Token Airdrops" instruction that was available on the Bankless platform. Despite the fact that the jury is still out on some of the initiatives that I covered, I did get certain things right, such as the dYdX and SuperRare airdrops.
What would the format of that guide be if I were to write it today? What are some of the most exciting initiatives now underway that have the potential to give out free tokens to its participants in the not-too-distant future?
I'm going to make some educated guesses about the answers to these questions in my revised V2 guide. As a result, here you'll find an overview of over 25 fascinating projects spanning decentralized finance, non-fungible tokens, and other domains that could ultimately perform airdrops, along with relevant information and instructions.
Words of Wisdom
Given all that has transpired over the course of the last year, it is plausible to draw the conclusion that airdrops are on their way to becoming regular operating procedures for nascent DeFi programs. Although there is still some work to be done to optimize these airdrops from the standpoint of the project (such as making them Sybil Resistant), at this moment, the majority of projects will consider participating in an airdrop if they already have an established product with consumers.
Having said all of that, one does not need to be a rocket scientist to forecast that there will be a significant increase in the number of airdrops that take place in the near future. The point is? The majority of individuals do not have a lot of time and infinite money to invest in each and every DeFi project that could one day issue a token.
Consequently, efficiency is the name of the game: determining which projects to concentrate on (for example, is there a non-trivial possibility that a certain protocol will launch a token over the next six to twelve months?) and with what sort of size (i.e how much money to deposit to balance risk with potential reward).
In regard to the first point, you can often uncover a team's or community's token plans to lead you through the process with just a little bit of investigation. For example, only lately, ParaSwap indicated that it does not intend to do any airdrops. On the other hand, MetaMask only just made public its willingness to consider the possibility of someday launching its own native coin.
As a result of this, you could wish to start engaging in some cryptocurrency swaps using MetaMask as an illustration. Even while there is no assurance that a token will appear in the near future, at least we now know that it is there on the playing field, and we may begin to adjust our emphasis appropriately.
Next, in order to be eligible for an airdrop, what level of interaction with an untokenized procedure is required?
This may change depending on the project, but the early golden rule for DeFi is "never deposit more cryptocurrency than you can afford to lose."
What's the upbeat report? As the creator of The Daily Ape, Darren Lau, pointed out a month ago, all it takes is a relatively little amount of money or activity for you to become eligible for a non-trivial airdrop.
25+ crypto projects that might have a future airdrop
Here is our updated list of fascinating cryptocurrency projects that have a chance of releasing a token and conducting a backwards-compatible airdrop in the not-too-distant future.
1. Element Finance
March of 2022 has been confirmed.
2. Hop Protocol
*Confirmed in May 2021: HOP has declared that it will be doing an airdrop as part of its ongoing efforts to begin transitioning towards DAO governance.
3. DeFi Saver
4. Ondo Finance
Instead of an airdrop, Ondo Finance has stated that there will be a sale of CoinList tokens.
5. Saddle Finance
*Agreement reached for November 2021:
In an effort to completely transition towards DAO governance, Saddle has distributed SDL tokens through an airdrop.
Strategy based on airdropping: Participate in the trading of tokens via the exchange, as well as act as a liquidity provider.
