Rabbithole is reintroducing itself with a fresh approach aimed at sustaining capital on DeFi protocols rather than encouraging temporary spikes. The platform now operates as an Onchain Retention marketplace where protocols pay to keep funds committed, while holders receive incentives for maintaining their positions over time.
New Incentive Model Focused on Staying Capital
Traditionally, DeFi rewards have triggered rapid inflows followed by swift withdrawals once incentives ended. This cycle created deposit charts with sharp increases that quickly reverted, indicating liquidity that was mostly rented and not loyal.
Rabbithole’s updated system counters this by streaming rewards continuously, allocating payments based on how long and how much capital remains staked. Protocols direct funds to support behaviors they value: longer holding periods and sustained deposits. Participants labeled as Residents represent the loyal capital that remains stable before, during, and after reward campaigns.
Designed to Reduce Farming and Boost Quality Holding
Previously, Rabbithole operated rewarding one-time actions, which attracted many low-value users along with bots and sybil attacks. The relaunch marks a clear departure with a design rewarding duration and proof of holding, making manipulative farming economically unviable.
Matt Grunwald, CEO of Rabbithole, stated: «Incentives in DeFi have rewarded the wrong thing for years. We have been paying for attention and one-time clicks, then wondering why the capital disappears. Onchain retention flips that. Protocols pay for the capital that stays, and the people who stay are the ones who get paid.»
Launch Timeline and Participation Details
Rabbithole has opened sign-ups for users to complete onboarding and earn verified Early Access entries. Participants can improve their position by referrals and arrive ready for the platform’s first incentive wave launching in early August.
The new marketplace applies insights from prior collaborations, emphasizing duration metrics, wallet quality, and retention after campaigns. This relaunch positions Rabbithole as a pioneer in this emerging category within DeFi incentive structures.
This development shifts the DeFi reward paradigm from fleeting capital to sustained engagement.
