The Complete Guide to DeFi Communication
This guide outlines how protocols can create a web3 DeFi communication strategy for traders on any major chain.

The Problem with DeFi Communication Today

DeFi feels disorganized. Multiple wallets, multiple chains. Prices up, prices down. Money in, money out. How can anyone keep track of it all?  

Traditional Finance feels further ahead when it comes to experience, in part because there is a solid, trustworthy communication system in place. Traditional email + traditional finance = emails to notify of when money moves, tracking of investments easily and overall peace of mind, for governments, companies and traders.  

Web3 companies are constantly compensating for the fact they don’t have a communication system in place to notify wallets, the very thing people use to transact in DeFi. They post updates to social and community channels, all of which are made with accounts one must login to with a traditional email. There is a lack of direct wallet-to-wallet communication. And that means these DeFi protocols — and their users — have to use or disclose a traditional email address account, compromising privacy.

The Solution to DeFi Communication

Mailchain is the communication layer for web3. It encrypts messages for 1:1 and group chats between DeFi stakeholders, using their web3 identities and wallet addresses. Mailchain is open source, working with all blockchain protocols: It's multichain and supports all EVMs and major chains. It includes an SDK for developers and a private web3 inbox for users.  

Key Strategies for DeFi Communication Using Mailchain

When you have wallet-to-wallet communication that is inherently private, you have DeFi protocols that can build a trusted relationship with their users.  

DeFi Protocols can notify users about new transfers to their address

DeFi Protocols can notify users about a volume of trades over a threshold

DeFi Protocols can notify users about market conditions

Real-time DeFi Notifications and Updates‍

DeFi is always changing. Minute by minute. Hour by hour. Use Mailchain to trigger automatic notifications based on specific onchain events, ensuring that stakeholders receive the most up-to-date information, including buying/ selling transactions.

Secure and Private Wallet-to-Wallet Messaging‍

Mailchain's end-to-end encryption ensures that all communications between parties are secure and private, which is critical when sending and receiving sensitive financial transactions or other confidential information. Mailchain’s encryption ensures that only the sender and the intended recipient can access the content of the messages.

Direct Communication with DeFi Stakeholders‍

With Mailchain, companies can have direct, wallet-to-wallet communication with various stakeholders, including investors, team members, and users. No personal information required.  

DeFi Marketing with Wallet Addresses

With a Mailchain inbox, DeFi projects can now create tailored marketing and loyalty offers. Using the same W3C standards as the KYC credential, the Mailchain inbox can be used to self-issue verified credentials for opt-ins to marketing and offers from vendors, so network providers can reach all of their users securely and verifiably.

Automate DeFi Investor Onboarding

Automate onboarding messages and streamlined comms to new investors with a welcome package and vesting plan information to their wallet address via Mailchain.

Validate DeFi Payment Models

Validate payment models for initial token vesting contract launches and continual DeFi platform use.  

DeFi Community Building and Engagement‍

Regular updates, newsletters, and a direct, verifiable channel for feedback can help create a more engaged and active DeFi community. Traders want information and content from the platform or protocol they are using. With Mailchain, DeFi projects can send curated content directly to a trader's wallet address; they can segment wallet addresses according to trading activity and send personalized information. The relevancy builds more meaningful engagement and relationship between protocols and users.

Enable Web2-Web3 Communication Opt-In

Let the user decide what channel they prefer. If users don't want to give their traditional/ web2 email address, DeFi projects can enable specific web3-native clients and users to receive web3-native information via their wallet address or Mailchain account.

Create a Verified DeFi Support Channel

DeFi projects can establish a direct and secure line of communication between the project team and its users, to resolve queries or issues.

Web3 Receipts for DeFi Projects

Transacting in DeFi should be both intuitive and safe. With Mailchain, projects and users can manage and track finances in a traditional, human-readable way, with web3 receipts. Help users to follow their own wallet activity, and keep your own team and company safe with tax and compliance reports.  

Anyone who has a wallet, or multiple wallets, and makes purchases in DeFi, can receive these activity receipts in their associated wallet’s inbox.  

Automate DeFi Activity Receipts with Mailchain

Users can get as many receipts as they want with as many wallets as they want. Because Mailchain is a multi-wallet web3 inbox, anyone can have multiple wallets attached to one inbox and receive messages specific to each one. For example, if a user makes a purchase using a Solana wallet address, the user will receive a receipt to their associated Solana wallet inbox. If they make a purchase using their Ethereum wallet address, they will receive a receipt to their associated Ethereum wallet inbox.  

Users can import as many wallet address as they want into one Mailchain account without publicly linking wallet addresses together, which gives them a completely private, cohesive view of spending.  

Builders can reference the following tutorials to see how they can create onchain event notifications with Mailchain.

Mailchain and Alchemy Notify Onchain Event Notifications
Malchain and Hal Notify Onchain Event Notifications
Mailchain and Tenderly Onchain Event Notifications

Web3 Purchase Receipts‍

Every time a user makes a purchase, generate a detailed receipt. Send this receipt directly to the user’s associated wallet inbox, making it easy to track and review transactions.

Web3 Deposit Receipts‍

When users make deposits into DeFi platforms or projects, provide them with a receipt, detailing the amount, date, and other relevant transaction information.

Web3 Withdrawal Receipts‍

Similarly, for withdrawals, users can receive comprehensive withdrawal receipts to serve as a clear record of the amount and timing of the withdrawal, adding an extra layer of transparency and security.

Web3 Receipts & Statements for Compliance Reporting

Mailchain serves as the ideal web3 communication protocol for sending and receiving these web3 receipts and statements. Monthly statement reporting obligations can be met using Mailchain, delivering the statement of transactions, rates, etc. to the associated wallet address. DeFi projects can ensure that both they and their consumers are kept informed, with necessary documentation readily available for compliance purposes.

Web3 Receipts for Payment Tracking

Provide customers with detailed receipts for payment transactions and send each one to the associated and verified wallet address. These receipts can be used to track payments within the DeFi ecosystem, adding a layer of transparency and accountability.

Web3 Receipts for Tax Purposes

Having accessible and accurate transaction records is critical for tax and compliance purposes. By providing these receipts directly through Mailchain, customers can gather the necessary data for tax filings, reducing the complexity and time involved in tax preparation.

This adds value to the customer experience and can also position DeFi projects as a responsible and trusted entity in the eyes of regulators and tax authorities.

Web3 Receipts for Grant or Token Vesting

Automate the sending of receipts for token vesting claim activity or receiving grants. Users can receive receipts based on token vesting schedules or grant delivery schedules directly to their wallet addresses.

Conclusion

DeFi was created as a response to various limitations and challenges faced by traditional financial systems. Adoption will only take place when governments, businesses and users have a communication protocol they can trust to work alongside it. With a multichain web3-native communications protocol like Mailchain, everyone can transact and communicate with peace of mind.

Are you a DeFi project or platform looking to improve communication and engagement with traders?
Let's talk about how Mailchain can fit into what you're building. Reach out to our team here.
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