As part of the RabbitHole V2 experience, Quest Protocol will allow protocols to specify whitelists and distribute rewards based on predefined conditions on-chain.
Written by: 0xF719
Compiled by: aididiaojp.eth, Foresight News
Quest Protocol Introduction
We are excited to announce details about RabbitHole’s Quest Protocol, part of the new and upcoming RabbitHole V2.
When RabbitHole was first launched, we noticed that there were only a few thousand active addresses in the crypto space, and many token holders were confined to centralized exchanges and unable to participate in the growing crypto application ecosystem. So we developed Quests to try to solve this problem: return tokens to protocols and users, rather than being held by speculators.
At the outset of project development, we aimed to validate hypotheses about tasks and ultimately make them permissionless so that the protocol could be quickly adopted by a broad RabbitHole user base and provide token rewards to active users.
After months of hard work, and combining everything we’ve learned along the way, Quest Protocol is here. We believe that Quest Protocol will not only be one of the most efficient ways to get tokens into the hands of users, but will also become a new standard for token distribution.
Key Features of Quest Protocol
The task list is fully represented on-chain. Each task will now be a separate smart contract. The protocol is able to define set list parameters according to its own predefined conditions and deposit rewards for each relevant user. Here are the main components:
Quest Deployer: A new way for protocols to deploy temporary airdrop opportunities as smart contracts. Protocols can use their ERC20 tokens to incentivize users who interact with smart contract events on the protocol. Protocols can specify the length of time, reward amount, and number of participants.
Quest Receipts: Once the protocol decides to run a quest list, it creates a new quest that will claim a limited number of receipts that can eventually be claimed by addresses on a pre-determined permission list for rewards. Receipts are ERC-721 NFTs that are transferable but can only be claimed once per quest. Individuals who complete a quest can deposit receipts into their wallet. They can then use the receipts to claim rewards in the future and for any other potential uses.
Whitelisting: Although off-chain, it’s worth mentioning. We worked with various protocol teams for several months to define the characteristics of a valuable user. But each team had their own definition. We took inspiration from the NFT space and introduced whitelisting, which allows protocols to specify their own definition of a valuable user. Instead of RabbitHole determining what is valuable, protocols will be able to determine it based on their needs.
Create an allowlist, set up tasks, deposit rewards, and publish your tasks.
Advantages of Quest Protocol
There are several main benefits to publishing quests on Quest Protocol:
Easier to launch ad hoc airdrops for protocols: No longer do protocols have to spend days launching airdrops for users. Projects can simply define a whitelist, select on-chain tasks, and deposit tokens into the contract, allowing users to start interacting in minutes.
Faster claiming process for users: Previously, users had to wait until the task was completed to receive the reward. Now users can claim the task reward immediately through the task smart contract after receiving the receipt.
More on-chain data means more data for analysts: Dune wizards can create dashboards from each task contract and see how task participants interact with the protocol, determining the efficiency of each task or token allocation.
More composability: Quest Protocol’s simple yet powerful architecture allows for entirely new composability. Quest Receipts can be used as collateral in lending protocols, and more.
No permission required
We believe Quest Protocol will eventually exist entirely independently, and one day become completely permissionless, with anyone being able to create quests, but it’s a long and winding rabbit hole to get there. Check out GitHub for more information.