What is RabbitHole Crypto?

Introduction

As the crypto ecosystem continues to evolve, the level of complexity can be overwhelming for beginners, especially when it comes to decentralized applications (dApps). The complexity of the protocols and contracts required to participate in these dApps can make it challenging for new users to understand and access them.

Without a streamlined way for new users to learn and get involved, the adoption of dApps and Web3 will remain limited. RabbitHole offers a simple solution by providing users with an easy way to participate in crypto networks and dApps, while also earning rewards and enjoying the learning experience.

This article explores RabbitHole Crypto, including its functionality, available challenges, and rewards. It highlights its benefits in bridging the gap between new users and the decentralized ecosystem. Readers will gain valuable insights into how RabbitHole facilitates cryptocurrency earnings and participation in exciting crypto networks and dApps.

What is RabbitHole Crypto?

Source: rabbithole.gg - RabbitHole

RabbitHole Crypto is a gamified platform that aims to make crypto more accessible and enjoyable for everyone. Built on the Quest Protocol, it allows users to earn cryptocurrency and other rewards by participating in decentralized applications and web3 crypto projects.

In essence, RabbitHole Crypto makes learning about new crypto projects more engaging by rewarding users with tokens or other cryptocurrencies in exchange for performing activities like staking coins or experimenting with various dApp features.

Through completing tasks and leveling up, users can earn tokens and other rewards. RabbitHole provides a unique way for users to learn about new networks with tailored content, earning XP as they increase their knowledge and skills. The platform bridges the gap between decentralized ecosystems and mainstream adoption, creating a dynamic and engaging experience for all users.

Brief History of RabbitHole

RabbitHole was introduced by the founder, Brian Flynn, in May 2020. In June 2021, RabbitHole raised $3.6 million in seed funding led by Electric Capital, with participation from other prominent venture capital firms such as Coinbase Ventures and Framework Ventures. This funding allowed RabbitHole to expand its operations, continue developing its platform, as well as attract top talent to its team.

Building on this momentum, RabbitHole announced in February 2022 that it had raised $18 million in Series A funding led by Greylock and TCG Crypto. The funding round also included participation from several other prominent investors, such as ParaFi Capital and Jump Capital. With this additional funding, RabbitHole aims to further expand its platform and attract more users.

Gamified Learning Approach

RabbitHole has taken a unique approach to learning about the complex world of cryptocurrency by gamifying the experience. The platform presents users with a series of quests or tasks that are designed to educate them about different aspects of the crypto ecosystem. These quests are both educational and entertaining, making it easier for users to learn about blockchain technology and cryptocurrency.

Source: rabbithole.gg - Examples of Quests

The gamified approach used by RabbitHole is effective in keeping users engaged and motivated to continue learning. As users complete quests and earn rewards, they feel a sense of accomplishment and progress.

RabbitHole’s approach also breaks down complex concepts into smaller, achievable tasks, making it easier for users to learn about cryptocurrency without feeling overwhelmed or intimidated. Examples of quests include staking ETH on Lido, swapping $UNI on Uniswap, and listing an NFT on OpenSea, giving users hands-on experience in different areas of the crypto industry.

Main Features of RabbitHole

The main features of RabbitHole’s gamified learning experience include Projects, Skills, Quests, and XPs.

• Projects: RabbitHole partners with various blockchain protocols to create Projects which consist of Skills and Quests for their users. By partnering with RabbitHole, these protocols can increase user engagement and incentivize users to learn and explore their products and services.
• Skills: Skills are short learning modules or tasks designed to teach users about a specific concept or feature related to a blockchain project or cryptocurrency tool. For example, a Skill might require users to stake a small amount of a project’s token and complete a quiz on staking basics to earn a reward in the form of more of the project’s token.
• Quests: Quests are a series of Skills or on-chain tasks that are linked together to form a larger learning experience to achieve a particular objective. For instance, a Quest might consist of three Skills related to using a particular cryptocurrency wallet, with the first Skill requiring users to create a wallet, the second Skill teaching users how to send and receive transactions, and the third Skill teaching users how to participate in a DeFi protocol using the wallet. Upon completing all three Skills in the Quest, the user earns a bonus reward.
• XPs: XPs, or Experience Points, are a measure of a user’s progress and level within RabbitHole. Users earn XPs by completing Skills and Quests, and as they earn more XPs, they level up and unlock access to more advanced Skills and Quests. To illustrate, a user might start at Level 1 and need to earn 1,000 XPs to reach Level 2. Upon reaching Level 2, the user unlocks access to more advanced Skills and Quests and can earn even greater rewards.

It is important to note that RabbitHole has removed the Skills and XPs component in its recent upgrade from RabbitHole (V1) to RabbitHole V2.

New Features in RabbitHole V2 Upgrade

On February 16, 2023, RabbitHole announced the upgrade of its platform based on user feedback. The feedback highlighted three main issues: first, it was too hard to get started on their platform; second, it was confusing to tell the difference between Quests and Skills; and third, it took a while to claim rewards for completing quests. In response, RabbitHole has made significant changes to improve the user experience.

• Allowlists: This is a feature that helps users easily discover quests they are qualified to join. Each quest is linked to a specific project, which determines the eligibility criteria for users. For instance, a project might create an allowlist of users who have purchased a particular type of token. By being on the allowlist, users will only see quests on the platform that they are eligible for. This feature aims to minimize barriers to entry and enhance the user experience by presenting only relevant quests that users can actively engage with.
• Replacing Skills with Beginner Quests: Previously, users had to complete certain skills before they could access certain parts of the platform. This meant that users who had not completed certain Skills were excluded from certain quests and activities on the platform. However, with the introduction of Beginner Quests, all users can participate in the platform without having to complete specific skills first. This change means that all users are now able to access all parts of the platform without feeling excluded or left out.
• Quest Receipts: These are like certificates that prove a user completed a quest on RabbitHole. They make it easy for users to claim the reward for completing a quest. After finishing a quest, users can mint a Quest Receipt. If a user doesn’t want the reward, they can sell their Quest Receipt on a marketplace called OpenSea, which specializes in selling NFTs.

The Quest Protocol

Source: rabbithole.gg - Quest Protocol

The Quest Protocol is a new feature of RabbitHole V2, which is a way for cryptocurrency protocols to incentivize their users by rewarding them with tokens. The Quest Protocol is designed to encourage users to use protocols instead of just holding tokens. It enables protocols to quickly allocate tokens to users who complete a particular task or quest.

For instance, a protocol might require users to add liquidity to a specific pool or perform a transaction. Once the user fulfills the task, they are issued an NFT known as a Quest Receipt. This Receipt can then be used to obtain a reward, such as tokens, access to a service, or other benefits.

The Quest Protocol benefits both protocols and users. Protocols can easily create airdrops and deposit tokens into the contract, allowing users to start earning rewards in a matter of minutes. Users can claim their rewards instantly and use their Receipts as proof of their participation in the Quest. The Quest Protocol generates on-chain data, which can be utilized by analysts to gauge the effectiveness of each quest or token distribution.

The design of the Quest Protocol allows for greenfield composability, which means that Quest Receipts can be employed as collateral in lending protocols and other applications. RabbitHole believes the Quest Protocol will be one of the most efficient ways for protocols to distribute tokens and become a new standard for token distributions.

How Does RabbitHole Work?

Source: rabbithole.gg - How it works

RabbitHole works by providing users with a series of on-chain tasks and quests to complete across the crypto ecosystem. To begin the process of earning tokens, users must first establish a cryptocurrency wallet and connect it to the RabbitHole platform.

Next, users can initiate transacting on-chain, acquiring tokens to grow their on-chain profile. This, in turn, elevates their prospects of being deemed eligible for further quests. Subsequently, upon accomplishing a task, users can retrace their steps to RabbitHole for the final authentication of the completed quest.

Following the authentication, users can mint a Quest Receipt - a non-fungible token (NFT) that acts as evidence of the quest’s successful execution. Users can then use their Quest Receipt to claim a token reward. The more transactions, quests completed, and receipts minted, the more tokens users can earn.

Transitioning from XP to ETH Earned

Source: rabbithole.mirror.xyz - Introducing ETH Earned

Prior to the emergence of RabbitHole V2, RabbitHole used a reputation system called XP to reward users for their contributions. However, they noticed some problems with XP. It was hard to measure and compare how much a user had learned across different projects because XP points were not standardized. Also, some users could cheat and get lots of XP without really learning much.

Source: rabbithole.mirror.xyz - Reward Page Showing ETH Earned from a Quest

To solve these problems, on April 6, 2023, RabbitHole decided to switch to a new reputation system called ETH Earned. This system focuses on rewarding people for actively participating in the crypto community, rather than just having a lot of cryptocurrencies. The system is built on RabbitHole’s Quest Protocol and measures users’ ETH Earned score by the number of quests they complete. The ETH Earned can be viewed on the Reward Page. The more quests completed by a user on RabbitHole, the more ETH Earned by that user. This new system is fairer because everyone earns the same amount of ETH Earned for completing a quest, regardless of how much cryptocurrency they already have.

The Importance of RabbitHole in the Crypto Ecosystem

RabbitHole is an essential platform in the crypto ecosystem because it provides an innovative solution to one of the biggest barriers to entry for new users: education. Its unique gamified tasks and curated content offer an engaging way for users to learn about crypto networks and applications, thereby increasing adoption and participation in the broader crypto ecosystem. Furthermore, RabbitHole’s incentivization system is instrumental in the growth of new crypto networks, as it offers rewards and incentives for users to interact with testnets and smart contracts, encouraging experimentation and innovation.

RabbitHole also serves as a discovery platform for users to explore new networks and applications. By curating content and quests tailored to users’ interests, RabbitHole streamlines information and provides a personalized experience, helping crypto networks and applications reach their target audiences effectively. In summary, RabbitHole plays a vital role in the crypto ecosystem by providing an engaging platform for education, incentivization, and discovery.

Blockchain Partnership

Source: rabbithole.gg - RabbitHole Partners

RabbitHole has formed partnerships with leading blockchain-based projects and protocols, enabling its users to explore and engage with different areas of the crypto ecosystem. These partnerships include Uniswap, DYDX, Gnosis Safe, POOL, Polygon, and Celo.

Through these partnerships, RabbitHole users can complete quests related to liquidity provision, trading, lending, safe asset management, governance participation, and more, across different platforms. These partnerships enable RabbitHole to offer a more diverse range of quests to its users, allowing them to earn rewards while learning and participating in various areas of the crypto ecosystem.

Advantages of RabbitHole

• Gamified education through quests for a unique and enjoyable learning experience
• Incentives for users to participate in new networks
• Curated tasks for each application
• Provides an opportunity for extra income through rewards for completing quests

Disadvantages of RabbitHole

• Lack of information about the platform and its future projections on the official website
• High gas fees on certain networks, may impact the rewards earned by completing quests
• A limited selection of applications, which may limit users’ ability to explore the broader crypto ecosystem
• Limited rewards, which may not be substantial enough to justify the time and effort required to complete quests

Conclusion

RabbitHole Crypto offers a unique and innovative way for users to engage with blockchain applications and learn about the world of cryptocurrency. Its gamification features and partnerships with various protocols make it an accessible and exciting platform for anyone looking to earn rewards while exploring the crypto ecosystem.

RabbitHole is poised to grow into a significant participant in the market as additional protocols join, fostering innovation and influencing the adoption of blockchain technology in the future. RabbitHole provides a fun and low-risk method to participate in the cryptocurrency world while earning and learning, regardless of your level of experience with cryptocurrencies or your level of inexperience.