Research: Friend3

Introduction

The digital assets domain witnesses consistent innovation as platforms rise, aiming to redefine existing paradigms. One such entrant is Friend3, a SocialFi dApp built on the Binance Smart Chain (BSC), a blockchain known for its adaptability and reliability.

At its core, Friend3 seeks to offer a different take on social monetization through its model of customizable pay-per-group communities. Its distinct approach and commitment to individual control, security, and user experience differentiate it from many others in the market.

Friend3 has been recently accepted into the Gas Grant Competition organized by BNB, a platform that allows projects to vie for a share of a $200k prize pool. To ensure its platform's robustness, a crucial audit was conducted on its primary smart contract by Peckshield, which didn’t show any major issues. Moreover, Friend3's alliances with SpaceID, OntoWallet, MathWallet, and Galxe suggest thoughtful steps to solidify its foothold in the SocialFi arena.

As part of our ongoing exploration into the SocialFi sector, we've previously delved into Post.Tech. We recommend our readers refer to that report for a broader perspective on this evolving space.

Product Evolution: Friend3's Innovative Approach

Friend3 emerges not merely as a new platform, but as the next logical step in the evolutionary journey of Friend.Tech.

At its heart, Friend3 retains the defining concept of its predecessor: the notion of pay-per-group communities. However, it's not merely content with replicating this model. Friend3 expands upon it, bringing a range of novel features designed to enhance user engagement and elevate the overall experience.

1. Seamless User Experience Across Devices: Friend3 understands that in today's connected world, users want the flexibility to engage from any device. Hence, the platform offers a smooth user experience (UX) that's optimized for desktops, tablets, and mobile devices alike.

2. Enhanced Media Sharing: Interactivity is the cornerstone of any social platform. Friend3 recognizes this and has taken measures to enhance its image and video sending capabilities, making multimedia sharing more streamlined than ever before.

3. Seamless YouTube Integration: In a world where video content dominates, Friend3 seamlessly integrates YouTube embeds, allowing users to share and watch their favorite content without ever leaving the platform.

4. Empowering Donations: Contributing to the SocialFi aspect, Friend3 introduces a comprehensive donation system. Users can now effortlessly send tokens, with support for popular cryptocurrencies like $BNB, $BUSD, and $USDT, amongst others.

5. Efficient Ticketing System: Recognizing the importance of transactions in the ecosystem, Friend3 has developed a streamlined ticketing system. Users can now purchase multiple tickets simultaneously, optimizing both time and transaction costs.

6. Staying Connected with Chat Alerts: To ensure users never miss an important conversation, Friend3 incorporates unread chat alerts. This feature ensures that every message, every interaction, gets the attention it deserves.

7. Decentralization & User Autonomy: Contrary to Friend.Tech's limited on-chain user actions, Friend3 prioritizes transparency and decentralization. It offers users full control via direct Web3 wallet connections, ensuring that all activity is authentically recorded on-chain.

8. Growth & Adoption: While Friend.Tech faced challenges with scalability due to its pricing model, Friend3 promises flexibility in this arena. By offering variable pricing models and allowing creators to set holder limits, it seeks to cater to both niche and widespread communities.

9. Safety Measures & Data Privacy: Learning from past missteps in the space, Friend3 incorporates enhanced API anti-scraping measures and prioritizes user data protection, emphasizing their commitment to user safety and data integrity.

10. Enhanced Accessibility & Chat Dynamics: Friend3's approach to accessibility is twofold: platform reach and user interaction. By ensuring its availability on both web and mobile and launching on the high-traffic BNB-chain, Friend3 attempts to cater to a broader audience. Furthermore, its chat rooms, unlike Friend.Tech's limited visibility chats, promise open group discussions, giving room owners the discretion to set chat parameters.

Meteoric Rise: An On-Chain Analysis

Delving into digital assets, on-chain data serves as a precise compass, illuminating user behavior, transactional patterns, and the overall momentum of a protocol. For Friend3, this analytical gaze unravels several layers of insight.

Overview: Transactions, Volume, and Users

• Transactions: Friend3 has proudly recorded an impressive 50k transactions.

• Volume: Cumulatively, these transactions correspond to a notable 290 BNB in volume.

• Users: Evidencing its magnetic appeal, the dApp has attracted a user count of 29k.

Spotlight on Significant Activity Days: On inspecting the data, two distinct dates rise to prominence, marking significant peaks in user activity and transactions:

• 3 September: A pronounced surge in metrics was observed, emphasizing the day's significance.

• 23 September: A similar trend, albeit with varying specifics, was again noticeable, cementing the platform's continuous growth.

Analyzing the Disparity between the Peaks:

Drawing a contrast between these pivotal dates:

• 3 September: Metrics reveal 8k transactions and a volume of 92 BNB, with a user engagement of 6k.

• 23 September: This day witnessed a commendable 18k transactions and a user spike to 9.6k, but with a volume of only 41 BNB.

From this, an interesting narrative emerges: 23 September had higher transaction counts and user numbers, but the per-transaction value and user engagement on 3 September were decidedly superior.

Deciphering the Underlying Patterns:

• 3 September Spike: This notable climb can be attributed to Friend3's strategic announcement, which read: "If you've been active on #FriendTech before this announcement was made, you're eligible for a 10x BOOST on your T-Points for our upcoming Airdrop! 🚀". The significant volume on this day, even with a lesser user count than on 23 September, underscores the effectiveness of this move. Analyzing this data suggests that the 3 September user base could potentially be classified as 'whales' when contrasted with the user demographic on the 23rd.

• 23 September Surge: This period echoed with an overarching rise in the SocialFi arena, with PostTech taking the lead, which in turn influenced the swell in Friend3's on-chain metrics.

Wrapping Up the Analysis: Friend3's intricate on-chain data unravels a story of strategic initiatives married to the broader dynamics of the SocialFi domain. The synthesis of internal strategies and external market influences has been instrumental in sculpting its user outreach and transactional behaviors.

Total Value Locked (TVL) and Revenue Metrics

As we venture deeper into Friend3's financial landscape, two vital metrics stand out: Total Value Locked (TVL) and Revenue Generated. Each metric casts light on different facets of Friend3's operations and success.

Understanding TVL:

TVL represents the aggregate value of assets held within a platform. It acts as a dual indicator: on one hand, showcasing the magnitude or scale of the protocol, and on the other, serving as a barometer of user trust and confidence in using the platform.

• Friend3 has showcased a progressive rise in its TVL, testifying to its escalating scale and the growing trust users place in its capabilities.

• Distinct surges in the TVL data are observed on the 3rd and 23rd of September, aligning with the platform's pivotal events.

• As of now, Friend3's TVL stands impressively at 70 BNB, translating to roughly $15K.

Decoding Revenue Patterns:

Revenue provides a window into a platform's intrinsic value and its resonance with users.

• Mirroring the trends observed in other areas, revenue metrics for Friend3 also highlight spikes on the notable dates.

• To date, Friend3 has amassed a revenue of 24 BNB, or around $5K.

• This revenue stream springs from Friend3's strategic choice of imposing a 5% fee on all internal transactions, particularly centered around ticket trades.

A Glimpse into the Revenue Blueprint:

Friend3's monetization strategy, anchored around a 5% transaction fee, signifies a blend of foresight and user focus. By zeroing in on ticket transactions, Friend3 ensures that its earnings grow hand-in-hand with user activity. Such a model not only fosters regular revenue influx but also intertwines the platform's fiscal health with user engagement.

In wrapping up, the metrics surrounding TVL and revenue paint a vivid picture of Friend3's ascent in the decentralized digital arena. With a blend of strategic decision-making and user-centric design, Friend3's trajectory hints at even brighter days ahead.

F3 Airdrop: Rewarding Early Supporters

In our in-depth analysis of Friend3, we took particular notice of their innovative approach to rewarding community participation through the Epoch airdrop model. This strategy resonates deeply with the ethos of Web3, where community contribution and engagement drive the ecosystem's growth.

Current Status: Epoch 1 Running from August 25th to September 30th, this epoch boasts a prize pool of $150,000. The criteria for point accrual in this epoch are extensive, reflecting Friend3's desire to foster wide-ranging engagement:

• Twitter Engagement: From original tweets, replies, quotes, to views, likes, retweets, and more. However, participants should note that there are caps on the number of tweets, replies, and quotes every 24 hours.

• Platform Interactions: Invitations to new users, group membership expansion, group joinings, trading volume, and both making and receiving donations.

What intrigued us at Nova Research was the multifaceted approach. By incentivizing diverse activities, Friend3 promotes a holistic engagement, rather than a singular focus. Furthermore, Friend3's emphasis on transparency shines through, as the metrics might take a few days to synchronize, but the platform keeps its community informed and urges patience.

The Epoch Mechanics:

1. Engage & Earn: Engage both on Friend3 and Twitter. Every interaction, whether a tweet or a trade, translates into points.

2. Epoch's End: As an epoch culminates, Friend3 tallies your total points, mirroring your entire spectrum of interactions during that period.

3. Token Allocation: After the epoch, your accumulated points determine your share of the Friend3 tokens.

4. Token Redemption: Once the epoch concludes and the calculations are settled, participants can claim their tokens based on the accrued points.

From a research standpoint, this multi-layered approach to airdrops exemplifies how Friend3 seeks to cultivate an engaged and committed community. The blend of immediate rewards (like Twitter interactions) with sustained platform engagement (like trading and donations) makes for a robust and dynamic system.

Ensuring Authenticity: Bot-Free Environment

One of the challenges of airdrop campaigns is the surge in bot activity, with malicious actors attempting to game the system. To uphold the integrity of the F3 Airdrop, Friend3 collaborated with Nova Research, leveraging their expertise in identifying bot activity on SocialFi platforms. The results were reassuring: Friend3's campaign was free from bot interference, ensuring that only genuine users benefit from the campaign.

User Leaderboard: The Titans of the Friend3 Ecosystem

The Friend3 platform, since its inception, has seen a diverse range of users, each bringing a unique perspective and contribution to the ecosystem. As the platform evolves and grows, it becomes essential to spotlight and celebrate those users who've significantly shaped the community. Here's a look at our User Leaderboard, highlighting some of the most influential participants in the ecosystem.

1. The Foremost User: Friend3 Itself At the pinnacle of our leaderboard stands Friend3's official account, recognizable through its distinct address, 0x120fb78dc73bcba6fe077f0d2ab0c3d01b48a154 or friend3.bnb. This account has undoubtedly made its mark, setting a robust example for the community. It has been instrumental in distributing a whopping 50 Tickets. Its last sale price registered an impressive 1.5 BNB, asserting its position at the top.

2. The Silver and Bronze Contenders Following the lead but with their own notable contributions are the second and third top users of Friend3. Both have been fervently active, with the second-place user having distributed 22 Tickets and the third-place user just behind with 21 Tickets. Their last recorded sale prices were 0.30 BNB and 0.27 BNB, respectively, reflecting their active participation and trust in the platform's vision.

Unlocking the Potential for Wider Adoption & Growth

Friend3 acknowledges the pitfalls of rapid price escalations in limiting user growth - a challenge that platforms like friend.tech have encountered. While friend.tech's price model accelerates swiftly, ultimately capping the potential for larger community interactions, Friend3 has crafted a more nuanced approach.

Instead of a one-size-fits-all price trajectory, Friend3 introduces variability, catering to users with expansive audiences. This ensures that these individuals can nurture and grow their communities without the deterrent of steep pricing. Furthermore, the design isn't just about accommodating larger communities but about flexibility in alignment with community values. While some sectors flourish within exclusive, high entry barriers, others prosper when they can interact with a broader audience. In complementing this philosophy, Friend3 has incorporated features allowing Creators to customize holder & share count limits, thereby emphasizing flexibility and potential for expansive growth.

In wrapping up, the User Leaderboard stands as a reflection of the vibrant and active engagement within the Friend3 community. It’s not merely a recognition of numbers, but a celebration of the stories and users that give life to these figures, all contributing to a future replete with endless possibilities.

Competitors Overview: Positioning Friend3 in the SocialFi Landscape

The SocialFi ecosystem is dynamic and diverse, with various platforms vying for users' attention and engagement. In this competitive landscape, Friend3 seeks to carve its niche and offer a unique value proposition to its community. Here's a comparative assessment of Friend3 against two primary competitors: Friend.Tech and Post.Tech.

1. Transactional Footprint: When we delve into the transactional metrics, Friend3, despite its promising user base, has room for growth. On September 23rd, a day that witnessed peak activity across the network, Friend3 managed to capture 9% of the market share. In comparison, the market leader, Friend.Tech, dominated with a massive 76% share, while Post.Tech on Arbitrum trailed closely with 15%. This disparity underscores Friend3's challenge and opportunity in scaling its transactional presence.

2. User Engagement: A Silver Lining While Friend3 might be playing catch-up in terms of transactions, it paints a brighter picture when we assess user engagement. On the same activity-intensive day of September 23rd, Friend3 managed to secure the second spot with a commendable 31% of the user market share. Friend.Tech, despite its transactional might, held 51%, and Post.Tech accounted for the remaining 18%. This suggests that while Friend3 might be witnessing fewer transactions, it has successfully fostered a vibrant and expansive community of users.

Deciphering the User Dynamics

A closer look at the user base of Friend3 reveals intriguing patterns. The platform's audience appears distinct from its competitors. Characterized by numerous small users, this could be indicative of a more diverse and widespread user base. One plausible explanation for this user behavior is Friend3's ticket pricing model. Unlike its competitors, Friend3 employs a less aggressive ticket pricing strategy, potentially making it more accessible and appealing to a broader range of users.

Conclusion

In the rapidly evolving world of SocialFi, positioning is key. While Friend.Tech may currently be the leader in transactional volume, and Post.Tech establishes its mark on Arbitrum, Friend3 makes its own distinct impression. Its differentiated user base and inclusive pricing strategy set it apart, potentially redefining the norms of the SocialFi space.

Strengths:

• BSC Integration: As the first SocialFi protocol on BSC, a well-reputed and user-heavy chain, Friend3 potentially stands to gain from Binance's immense user base. Their acceptance into the Gas Grant Program of BNB Chain further cements their credibility.

• Inclusive Pricing Model: Friend3's adaptive pricing strategy democratizes access. The lowered barriers ensure ticket pricing is more approachable, thereby fostering a broader user base.

• UX and Security: The smoothness of the dApp and its bug-free experience during testing are commendable. Moreover, the platform's commitment to security, allowing users to interact using their own wallets, distinguishes it in a space often reliant on third-party custody.

• Team and Vision: The proactive team, transparent communications, and adherence to the roadmap are signs of a diligent vision at play.

• Media Integration: Friend3's ability to share media offers a path for a myriad of applications. This positions Friend3 beyond the realms of just a web3 platform. As it evolves, we could see a platform similar in scope to Patreon, enhancing its range of services and utility.

Areas for Improvement:

• Engagement Features: While the basic user experience is praised, augmenting features like discovery feeds for trending users can deepen user engagement and enhance retention.

• Chain Dynamics: While current dynamics around BNB Chain might present challenges, the forthcoming integration with opBNB could shift the narrative positively.

The journey ahead for Friend3 is imbued with promise. With a clear commitment to the community and a vision to continuously evolve, Friend3 is poised to make impactful strides in the SocialFi landscape.

Still Curious?

In our continuous pursuit of providing you with the most extensive insights into Friend3, we've gone the extra mile to ensure you're always well-informed in real-time. We are thrilled to introduce our On-chain dashboard tool, powered by FlipsideCrypto. This innovative tool empowers you to monitor critical metrics pertaining to Friend3, ensuring that you remain updated with the latest developments and trends.

Friend3 SociaFi | Flipside

We've also opened a social channel on Friend3, If you're interested in trying out Post.Tech and want to connect with us on this platform, we've got a referral code for you to use: friend3-932b7972

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⚠️ Disclaimer ⚠️ : Nova Research is an independent research entity and is not affiliated with Friend3 or any related organizations. This report is not a paid promotion or endorsement and is conducted solely for research and informational purposes. Nova Research maintains strict adherence to its core principles of impartiality and independence in providing insights and analysis. Readers are encouraged to conduct their own research and due diligence before making any investment decisions or engaging with the mentioned entities.