Our Value-Added

Enhanced Asian LP Strategy and Partnership Approach

Asian Market Potential

Globally, Asian regions demonstrate high proportions of investors preferring deposit products. Asian crypto investors, particularly in East Asia including Korea, maintain strong centralized exchange asset holding preferences with low DeFi participation rates due to information deficits and inadequate risk awareness. For example, as of 2025, major Korean exchanges Upbit and Bithumb hold approximately $40 billion in deposited cryptocurrency assets, with stablecoin DeFi participation rates estimated at only 6.7%. This indicates tens of billions in potential liquidity remaining centralized rather than flowing into DeFi. Partial migration of exchange-held assets to DeFi could enable trillions of won in new liquidity provision.

Localized LP Attraction Strategy

Recognizing this Asian market potential, Enhancer implements localized LP attraction strategies. The Undefined Labs team incubating Enhancer possesses experience supporting narrative construction for multiple projects in core Asian markets including Korea and China. For instance, specific Perp DEX projects achieved over $1 billion monthly trading volumes, while Layer1/2 chain token purchasing and staking demand increased through actual traffic and demand generation capabilities. Leveraging this network and expertise, Enhancer targets attracting $10 billion in Asian liquidity to DeFi by reducing entry barriers, enhancing risk awareness, and providing attractive liquidity incentives.

Asian market value propositions include:

Retail/Institutional LP Networks: Asian retail investors typically obtain information through trusted influencers and media channels. Enhancer teams collaborate with reputable local influencers and media, producing and distributing partner protocol research materials and weekly reports to establish mindshare. For institutional investor attraction, regulatory compliance and on/off-ramp solutions remain essential. Enhancer establishes institution-dedicated LP funds and constructs rails enabling traditional finance capital DeFi entry while providing partner protocols with institutional credit programs.

Research and Educational Support: Language barriers and information deficits often result in Asian LPs investing without adequate risk awareness. Enhancer addresses these issues by providing high-quality Korean and Chinese research materials, including fundamental research reports covering protocol introductions, architecture, token economics, governance mechanisms, and valuations. Additionally, periodic data-driven insight reports enable fact-based protocol growth evaluation while enhanced risk research provides visualized risk reports covering token economic models and liquidity risk profiles.

Value-Added Data-Focused

Enhancer isn’t just a distribution channel for liquidity incentives – it’s a comprehensive value-add for partner protocols. By collaborating with Enhancer, builders can leverage a suite of benefits that improve the efficiency of their liquidity programs and the health of their protocol. Here are the key ways Enhancer adds value to your project:

  • Data-Driven Insights and Analytics: Enhancer provides partners with a real-time dashboard of standardized metrics that shed light on the effectiveness of your incentive programs. Metrics like TPS (TVL per $1 Reward), RYR (Real Yield Ratio), and Reward Multiple are calculated for your protocol on an epoch-by-epoch basis. These metrics answer critical questions: “How much liquidity am I attracting per dollar of reward?” “What percentage of LP rewards are coming from actual fees (real yield)?” “Am I overspending on incentives relative to the value generated?”. By comparing these metrics against industry benchmarks or historical data, you can make informed adjustments quickly. For instance, if your TPS is significantly lower than the norm, it signals that your rewards aren’t efficient and perhaps you should reduce emissions or retarget them. If your RYR is, say, 20% (meaning 80% of rewards are just token emissions), you know to work on boosting organic fee generation or tapering token rewards. Such insights were often not readily available to protocols – Enhancer essentially acts as your analytics department for liquidity mining.

  • Efficient Liquidity Acquisition: Enhancer’s model helps you attract liquidity more sustainably and cost-effectively. Instead of blindly throwing high APRs and hoping liquidity sticks, Enhancer’s targeted boosts ensure that every reward dollar goes towards rewarding desirable behavior. It encourages the right kind of liquidity – stable, long-term, and engaged – by giving higher rewards to those who stick around and contribute beyond just capital (like community engagement or multi-platform participation). This means you get loyal liquidity providers, not just yield mercenaries who dump your token and leave. Over time, this can significantly lower your effective liquidity costs. The platform’s ability to dynamically adjust boosts also means during periods of excessive liquidity (low TPS), you can dial down rewards, and during growth phases when you truly need liquidity, you can dial them up in a controlled way. Enhancer standardizes liquidity market practices, potentially setting a new norm that benefits responsible projects.

  • Expanded Liquidity Network: By joining Enhancer, your protocol becomes part of a broader liquidity network. Enhancer has its own user base of LPs who actively look for opportunities on the platform. These users trust Enhancer’s vetting and are often willing to deploy capital to new partnered pools that appear on the dashboard. So, by simply being present on Enhancer, you gain exposure to a wider audience of liquidity providers. It’s similar to being listed on a major exchange, but for liquidity incentives – discoverability goes up. Furthermore, Enhancer’s interoperability means users can easily shift liquidity between partner protocols. If you run a compelling campaign, you might attract liquidity from protocols that have just finished their campaigns, because users see yours as the next opportunity. This network effect can bring you liquidity that you might not have reached on your own.

  • Long-Term Liquidity & Community Building: Enhancer incentivizes behaviors that contribute to your protocol’s long-term success. For example, the long-term participation rewards encourage LPs to stay with you over months. That helps in avoiding the typical post-reward exodus. Some campaigns can also reward value-add actions like governance participation or social media advocacy (Enhancer can track if an LP has contributed to community discussions or content, via off-chain inputs or manual points). This means you are effectively turning your LPs into active community members and stakeholders. The quality of liquidity improves – it’s not just hot money, it’s smart money that cares about your protocol’s growth (because they’re being rewarded for doing so). Over time, this community of engaged LPs can become evangelists for your project, helping with user acquisition and retention beyond the scope of just liquidity provision.

  • Risk Management and Stability: Enhancer doesn’t just feed you liquidity blindly; it also keeps an eye on risk indicators in your protocol. Through its Enhanced Liquidity Risk Profile monitoring, it tracks things like leverage levels in your ecosystem, potential liquidation cascades, bad debt ratios, etc.. If your protocol starts showing high-risk signals (say, a very high collateral-to-liquidity ratio suggesting leverage might cause instability), Enhancer can proactively issue reports or adjust reward allocations to mitigate those risks. For example, the DAO might decide to reduce rewards if a protocol is deemed too risky at the moment, to discourage over-leveraging by users chasing yield. While that might sound counterintuitive (less reward in risky times), it protects the ecosystem from blow-ups, which in the long run benefits protocols by preventing catastrophic failures. Additionally, Enhancer’s Cover Fund (discussed earlier) adds a layer of trust – LPs know that certain issues like delayed withdrawals could be covered. This indirectly benefits you because users are more willing to provide liquidity to your protocol via Enhancer, feeling there’s a safety net. It lowers the trust barrier for new users to come to your platform.

  • Turnkey Incentive Management: From an operational standpoint, Enhancer offers a turnkey solution for running liquidity mining or yield campaigns. Rather than building your own complex reward distribution contracts, interfaces, and analytics, you plug into Enhancer’s existing infrastructure. Enhancer handles the heavy lifting of tracking user activity, calculating rewards, and executing distributions in a transparent way. This saves your development team time and reduces chances of error (buggy reward contracts have been an issue for many projects historically). You also benefit from Enhancer’s security – their distribution mechanism is battle-tested across multiple protocols, reducing the risk of something going wrong in your specific implementation. Basically, you outsource the incentive engine to specialists, which is cost-effective and arguably safer. Also, Enhancer charges no fees to you for this service beyond possibly retaining some of the tokens for its treasury (which often are used to further boost or govern), meaning all your budget goes towards incentivizing your users.

  • Mutual Growth and Network Effects: Enhancer is essentially building a coalition of protocols that share an aligned philosophy of sustainable liquidity. By being part of this, you’re at the forefront of DeFi’s next evolution. There can be cross-pollination benefits too – for instance, multi-protocol campaigns or “liquidity as a service” bundles. Perhaps a user participating in Protocol A’s campaign can get an additional bonus if they also participate in Protocol B (if both protocols agree to a joint initiative). These kinds of collaborations become possible on Enhancer because everything is unified on one platform. It can lead to creative campaigns like “Provide liquidity on Protocol X and stake on Protocol Y, get a combined bonus” which encourages synergies among projects.

  • Regulatory and Compliance Support: While not explicitly a primary feature, Enhancer’s design (with whitelisting, KYC options, etc.) can help protocols navigate regulatory requirements. If your campaign needs to exclude certain regions or go KYC-only, Enhancer can enforce that. This value is more about risk management for you – you can still run a campaign and widen your distribution while adhering to legal constraints, without building that compliance tech yourself.

In summary, Enhancer’s value-added can be seen in two big buckets: improving outcomes (better liquidity, more data, stronger community, lower costs) and reducing headaches (less dev work, less uncertainty, risk mitigation, compliance). The platform is positioned as an optimizer and facilitator for the DeFi projects that want to move away from the old brute-force, costly liquidity mining and towards a smarter, leaner model. By partnering with Enhancer, you’re signaling to the market that your project values transparency and sustainability – which can enhance your reputation in the community.

Finally, all these benefits come while keeping control in your hands: you set the parameters of the campaign (with advice from Enhancer), and you can work closely with the Enhancer DAO. It’s a partnership. Enhancer succeeds when you succeed – since it accumulates value through effective incentives – aligning incentives all around.

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