Why Partnerships and Network Effects are Crucial for Successful Crypto Projects
Partnerships and network effects are powerful drivers of value, increasing as more people use them.
Strategic partnerships and networks are crucial to success in today’s business world. To avoid being left behind, businesses need to find new ways to connect with potential partners and grow their network effects so that all involved parties can benefit from the deal!
POP! allows projects to create partnerships and mutual trust agreements by locking their tokens in a trustless mutual liquidity pool (MLP). This will enable projects to grow responsibly and significantly reduce odds for rug pulls.
The benefits of strategic partnerships and network effects
Businesses that can quickly grow will be the ones to succeed in this competitive market.
The success of any company partially depends on how fast it can gain popularity and expand its reach. Still, it isn’t easy when you consider all the other competitors with similar products or services fighting for space among consumers flooded by too many options at once!
Scaling is not just about hiring more people or opening more locations. It’s about finding the right partners to thrive in today’s global environment and collaborating to achieve success, regardless of location or an industry a business operates within.
A strategic partnership can be a win-win for both parties. Platforms get the opportunity to share resources and expertise while also achieving network effects by expanding their reach through partnerships with other companies in the industry who want access to these valuable offerings as well!
The benefits of strategic partnerships far exceed just expanding a business’s reach through network effects; there is also plenty more that these two entities can share in terms of resources and expertise, which would otherwise be difficult if not impossible for one company alone to provide.
In cryptocurrency, alliances take place in several ways:
- Partnership with a platform
A company may use other platforms to enhance its overall engagement. They will attempt to attract, keep and grow users’ interest with this integration strategy by integrating another platform they feel can be helpful for users in some way or form.
- Partnership with a relevant but dissimilar company
The goal is to bring the other platform’s userbase into your company and work with them as auxiliary, maximizing project earning potential.
Cryptocurrencies are a disruptor in the global economy. They will change how we work, interact, and spend to rely on decentralized peer-to-peer networks with no central authority for validation transactions.
However, these networks often require users to be connected with other people who also want to use the currency to help the industry develop. This means the value of decentralized technologies is primarily dependent on the size and activity of its network.
How POP! encourages the creation of partnerships through the MLP and other features
Users on POP! become partnered farmers when each one provides single-sided liquidity onto an MLP. The goal is to lock the respective tokens in one place to build confidence and for risk protection. It helps in case either one of the partners is joining in with a bogus agenda.
Setting up MLPs also has the added advantage of increasing each of the participants’ DEX liquidity size.
The process is straightforward. After approval, both parties provide single-sided liquidity, essentially creating the MLP. LP tokens are then locked for a predefined period.
When the LP is done, POP! through a rebalancing mechanism, mitigates the impermanent loss.
Participants can also earn POP! tokens every time they add liquidity to an approved MLP.
You can see an MLP in action with the partnership between Bridge Mutual and Unido or other live MLPs.
POP! is a company on a mission: Develop its signature feature — the MLP marketplace and focus on giving different communities the right tools and opportunities to benefit from strategic partnerships.
About POP!
POP! is a platform that allows 2 projects to objectively display mutual trust and commitment to each other, by locking their respective tokens together and creating a trustless Mutual Liquidity Pool (MLP). In addition, it grants POP! users the opportunity to provide single-sided liquidity, in the form of their favorite token, by matching them with another POP! user and adding their joint liquidity into the MLP.
Powered by Faculty Group, POP! aims to set a new golden standard with regards to partnerships, and how they are perceived in the digital asset ecosystem.
