For Web3 Startups early adoption of their technology or protocols is the key for their survival and growth. For ex: ethereum even after having so high gas fees making it impossible to be adopted by retail users is still the leading blockchain not because it has big companies backing but because many of the current protocols are built on ethereum's blockchain.
Partnerships works as a Trust Signal for these Web3 Startups including blockchain startups, DEFI startups, DEX or CEX startups.
Why should Web3 Startups care more about partnerships then other SAAS or tech businesses?
- Active Community
Blockchain communities are highly active online especially in twitter and telegram, so partnering with web3 startup would gain trust in each other's community faster then other businesses.
- Maintaining Liquidity
Blockchain communities are highly active online especially in twitter and telegram, so partnering with web3 startup would gain trust in each other's community faster then other businesses.
Why partnerships?
- Better Governance
Governance is something each protocol needs, more diversity their exist in the adapters of web3 tech, more decentralized it is considered. Web3 Ecosystem is enormous so diversity scope is way more so having more partnered web3 startups would result in more diverse adapter for your web3 tech stack resulting in better governance.
- Faster Development
Building upon your partner's existing tech stack would reduce cycles of prototyping resulting in faster testing and deployment.
- Better Community Rewards
Many Web3 companies gain attractions of early adopters of their tech by incentivizing rewards by staking or adding liquidity to their pools, Using incentives provided by your Partnered Web3 Startup you can increase more rewards for your uses.
Few successful web3 Partnerships
1. UNI X COMP
UNISWAP a DEX and Comp a DEFI lending protocol partnered successfully where COMP provided UNI with liquidity incentives from it's users and in return got expanded staking pools.
2. MAKER X AAVE
MakerDAO a DEX which is creator of DAI stable-coin partnered with AAVE, a lending protocol where MAKER get utility for it's token DAI and AAVE get to lend DAI as collateral on their platform, an example of win-win situation for both parties.
