Step 1: Product design is fundamental, but the key is to identify the pain points of demand.

In the blockchain industry, product design is often the first step to success or failure. The commonality between Ethena and HyperLiquid is that they do not attempt comprehensive innovation but achieve differentiated breakthroughs by precisely grasping existing market pain points.

Ethena: From Yield to Liquidity, New Solutions to 'Old Problems'

Ethena's stablecoin protocol is not the first attempt at decentralized stablecoins, but it addresses the liquidity challenges faced by similar products in the past. By introducing centralized liquidity support from custodians, it not only enhances the protocol's scalability but also allows users to earn higher returns through stETH and re-staked assets. Furthermore, Ethena designed a dual-token structure with USDe and sUSDe, similar to the relationship between Ether and stETH, allowing users not only to obtain base yields but also to enjoy liquidity premiums. This minor innovation makes Ethena's stablecoin model more attractive.

HyperLiquid: Speed and Stability, Redefining the Derivative Trading Experience

Although HyperLiquid's decentralized derivatives trading platform is not the first of its kind, it has gained user trust through its design focusing on speed, stability, and the Liquidity Pool (HLP). Users experience high efficiency in deposits and withdrawals, with nearly instant transactions; the HLP liquidity pool design effectively reduces reliance on market makers typical of traditional DEXs, lowering transaction costs. More importantly, HyperLiquid is renowned for its exceptional system stability, maintaining reliable operations even when other platforms frequently experience downtimes or rollbacks, providing users with a seamless trading experience. This 'seeking victory in stability' strategy has quickly secured its place in the derivatives market.

Step 2: From 'Users' to 'Die-hard Fans', Community Operations are Key

The vitality of blockchain projects relies on community support. Although Ethena and HyperLiquid have different styles in their community operations strategies, both have achieved the effect of 'turning users into die-hard fans.'

Ethena: Leveraging 'External Networks'

The Ethena team understands the principle of 'borrowing strength to counter strength', quickly opening the market through the networks of industry KOLs and investment institutions. For example, Ethena collaborates with seasoned players like Seraphim to reach target groups such as the TempleDAO team and large traders. This strategy not only helps the project rapidly accumulate a user base but also enhances community trust in the project. Through endorsements from KOLs, Ethena has successfully embedded its brand into the hearts of users, even attracting industry 'big shots' like Crypto Hayes to join, further expanding its influence.

HyperLiquid: Direct Dialogue with the Community

In contrast, HyperLiquid has adopted a broader user outreach strategy. Team members have established connections with multi-tiered users ranging from Hsaka Trades to ordinary traders through direct conversations. More importantly, HyperLiquid allows users to feel heard and valued by continually iterating product features (such as introducing community-demanded 'vault' functions). This 'user-driven' community operation model not only enhances user engagement but has also made the community one of HyperLiquid's most powerful moats.

Step 3: Moats and Network Effects, How to Solidify Advantages

Any successful project will attract imitators. However, truly outstanding projects often manage to maintain a competitive edge by building moats. The efforts of HyperLiquid and Ethena in this regard are worth pondering.

Ethena: Liquidity and Composability are Core Barriers

Ethena's moat lies in its liquidity and protocol integration capabilities. By deeply integrating with mainstream DeFi protocols, Ethena has made its tokens the preferred choice for users, even when competitors offer slightly higher yields; users are still more inclined to utilize Ethena's assets due to their ease of use in the DeFi ecosystem. This combination of composability and high yields creates a natural appeal for Ethena's products.

HyperLiquid: The Positive Cycle of Liquidity Network Effects

HyperLiquid's core advantage comes from its Liquidity Pool (HLP). The design of the HLP not only attracts a large number of traders but also establishes a user network effect that is difficult to replicate. As the number of users grows, market depth and pricing advantages are further strengthened, which in turn attracts more users to join, achieving a positive cycle. Additionally, HyperLiquid plans to launch an EVM-compatible chain, further enhancing the capital efficiency and functional diversity of its ecosystem, which will undoubtedly solidify its market position.

Step 4: The Trade-off Between Financing and Airdrop Strategies

Ethena and HyperLiquid have drastically different choices in financing and token distribution strategies, but both successfully serve their core goals.

Ethena: The Accelerating Effect of External Financing

Ethena chose a traditional financing path, attracting support from various parties, including exchanges and well-known investors. This not only provided Ethena with abundant funding but also helped it quickly establish trust within the industry and integrate resources. For a protocol that needs to rely on existing platforms to expand its functionality, this strategy is undoubtedly wise.

HyperLiquid: Self-reliance, Maximizing Community Interests

The HyperLiquid team, leveraging their high-frequency trading (HFT) background, initiated the project with their own capital, avoiding potential sell-off pressures from institutional investors while allocating more tokens to community users. Their $HYPE airdrop has been well received due to its 'no lock-up, no complex rules' simple model, greatly enhancing user participation and confidence in the project. This 'user-first' strategy allowed HyperLiquid to win community support early on.

Conclusion: There is no fixed form for success, but path dependency is significant.

The success of Ethena and HyperLiquid proves that there is no fixed template for the growth path of blockchain projects. They chose the most suitable strategies based on their product features and market positioning, and gained market recognition through consistent execution. This 'tailored strategy for products' may very well be the true secret to success for blockchain projects.

For a wide range of projects, the stories of Ethena and HyperLiquid undoubtedly offer important insights: understanding the product, serving the users, and establishing a core moat are key to standing out in a fiercely competitive market.

[Disclaimer] The market carries risks; investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this carries responsibility.

  • This article is reprinted with permission from: (Foresight News)

  • Original Author: 0xResearcher

'Let users become die-hard fans! The rise of two new DeFi stars, can they become the new giants of this bull market?' This article was first published in 'Crypto City'.