Make users become hardcore fans! Two rising stars in Decentralized Finance, can they become the new giants of this bull market?

Step 1: Product design is the foundation, but the key is to find pain points in demand.

In the blockchain industry, product design is often the first step to success or failure. The commonality between Ethena and HyperLiquid is that they did not attempt to innovate comprehensively, but achieved differentiation breakthroughs by accurately grasping the pain points of the existing market.

Ethena: New Approaches to Solving 'Old Problems' from Yield to Liquidity

Ethena's stablecoin protocol is not the first project to attempt a decentralized stablecoin, but it solves the liquidity dilemma faced by similar products in the past. By introducing centralized liquidity support from custodians, it not only makes the protocol more scalable, but also provides users with higher returns through stETH and heavy collateral asset earnings. In addition, Ethena has designed a dual-token structure for USDe and sUSDe, similar to the relationship between Ether and stETH, allowing users to not only receive base returns, but also enjoy liquidity premiums. This micro-innovation makes Ethena's stablecoin model more attractive.

HyperLiquid: Speed and stability redefine the derivative financial product trading experience

HyperLiquid's decentralized derivatives platform, while not the first of its kind, has earned the trust of users through its speed, stability, and liquidity pool (HLP) design. The efficiency of user deposits and withdrawals is extremely high, and it is almost instantaneous; The design of the HLP liquidity pool effectively avoids the dependence of traditional DEXs on market makers and reduces transaction costs. What's more, HyperLiquid is known for its high system stability, providing users with a seamless trading experience despite frequent downtime or rollbacks from other platforms. This strategy of "winning steadily" quickly allowed it to take its place in the derivatives market.

Step 2: From 'Users' to 'Iron Fans', community operation is the key.

The vitality of blockchain projects depends on community support. Although Ethena and HyperLiquid have different styles in community operations, they have both achieved the effect of turning users into die-hard fans.

Ethena: Leveraging the 'external network'

The Ethena team understands the principle of 'borrowing strength to strike strength', quickly opening up the market through the networking of industry KOLs and investment institutions. For example, Ethena collaborates with seasoned players like Seraphim, reaching target groups such as the TempleDAO team and large-scale traders. This strategy not only helps the project quickly accumulate user base but also enhances the community's trust in the project. Through the endorsement of KOLs, Ethena has successfully made its brand deeply rooted in people's hearts, attracting industry 'big shots' like Crypto Hayes to join and further expanding its influence.

HyperLiquid: Direct Dialogue Community

In contrast, HyperLiquid adopts a more extensive user-centric strategy. Team members establish connections with multi-level users, ranging from Hsaka Trades to ordinary traders, through direct conversations. More importantly, HyperLiquid continuously iterates product features, such as the introduction of the 'Vault' feature based on community demand, to make users feel heard and valued. This 'user-driven' community operation model not only enhances user engagement but also makes the community one of HyperLiquid's strongest moats.

Step 3: How to Consolidate Advantages with Moats and Network Effects

Any successful project will attract imitators. However, truly excellent projects are often able to maintain a competitive advantage by building moats. The efforts of HyperLiquid and Ethena in this regard are worth considering.

Ethena: Liquidity and composability are the core barriers

Ethena's moat lies in its liquidity and protocol integration capabilities. By deeply integrating with mainstream DeFi protocols, Ethena makes its tokens the first choice for users. Even when competitors offer slightly higher yields, users are more inclined to use Ethena's assets because they are easier to use in the DeFi ecosystem. This combination of composability and high yield gives Ethena's products a natural appeal.

HyperLiquid: Positive Feedback Loop of Liquidity Network Effects

HyperLiquid's core advantage comes from its liquidity pool (HLP). The design of HLP liquidity pool not only attracts a large number of traders, but also establishes a user network effect that is difficult to replicate. As the number of users grows, market depth and pricing advantages are further strengthened, which in turn attracts more users to join, achieving a positive cycle. In addition, HyperLiquid plans to launch an EVM-compatible chain, further enhancing the capital efficiency and functional diversity of its ecosystem, a layout that will undoubtedly further consolidate its market position.

Step 4: Balancing Financing and Airdrop Strategies

Ethena and HyperLiquid have radically different choices in financing and token distribution strategies, but both have successfully served their respective core objectives.

Ethena: The Acceleration Effect of External Financing

Ethena chose the traditional financing path, attracting support from multiple parties including exchanges and well-known investors. This not only provided Ethena with abundant financial support, but also helped it quickly establish trust within the industry and the ability to integrate resources. For a protocol that needs to rely on existing platforms to expand functionality, this strategy is undoubtedly a wise move.

HyperLiquid: self-reliance, maximizing community benefits

Based on its high-frequency trading (HFT) background, the HyperLiquid team launched the project with its own funds to avoid potential selling pressure from institutional investors, while allocating more tokens to the community users. The $HYPE airdrop has been well received for its simple model of 'no lock-up, no complex rules', greatly enhancing user participation and confidence in the project. This 'user-first' strategy has earned HyperLiquid early support from the community.

Conclusion: There is no fixed formula for success, but the path relies heavily on it.

The success of Ethena and HyperLiquid proves that there is no fixed template for the growth path of blockchain projects. They have chosen the most suitable strategy based on their product characteristics and market positioning, and have won market recognition through continuous execution. Perhaps this 'tailor-made for products' strategy selection is the true secret to the success of blockchain projects.

For the wider project party, the story of Ethena and HyperLiquid undoubtedly provides important insights: understanding products, service users, and building core moats, ultimately stands out in a competitive market.

[Disclaimer] The market is risky, and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, views, or conclusions in this article are in line with their specific circumstances. Invest at your own risk.

This article is authorized to be reproduced from: "Foresight News"

Original author: 0xResearcher

"Make Users Become Fans! DeFi's Two New Rising Stars, Can They Become the New Giants of This Bull Market?" This article was first published in "Crypto City".