AI and Big Data based Crypto User Segmentation for DeFi and CeFI companies launched!
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SmartCredit.io is excited to launch our product which is the Big Data based User Segmentation for both CeFi and DeFi protocols/companies!
Why is this important?
It’s because every protocol/company has to decide which clients (wallets) are high value wallets that will be using the protocol and platform regularly. This can be done by:
- Companies can offer the same conditions to everyone OR
- Companies can provide better conditions for the better future clients
In Web3, all platforms have only the address when it’s connected to the platform, and this can be very challenging to decide which clients are more likely to be recurring customers who will use the products and services when they connect their wallets to the platforms.
Hence it’s not easy to decide which clients will be the potential future clients to offer products and services. Therefore the platform often offers the same conditions to all clients.
Big Data User Segmentation fixes this issue, How ? Protocols and Platforms can use our innovative product which is Segmentation API, this will allow the wallets that are connected to the platforms and protocols to receive ranking on the Ethereum, Polygon, and Binance Smart Chain depending on their previous activities.
What is User Segmentation?
User Segmentation is widely used in Traditional Finance as MIS (Management Information System) databases which in traditional finance analyzes the platform’s user behavior. The client base that is used are mostly categorized into 3 different clients which in traditional finance is called the ABC classification.
Lets use 100 clients for this example, very often, the ABC classification is used, where :
- “A clients” are 10% of the clients and generate most of the revenue,
- “B clients” are 20% of the clients, which might be (but not always are) profitable,
- “C clients” are 70% of the clients, which usually generate more costs than revenues,
Of every 100 clients, ten of the clients which is 10% are likely to generate the most revenue — these are the “A clients.” These are the clients on which the companies should focus on. It’s just that the companies do now know which ones they are as currently there is no data to provide this analysis to different companies and protocols.
By analyzing all wallet addresses with Big Data and AI, we can analyze wallets and identify potential; high value clients to allow these Cefi/Defi protocols and companies to approach these clients and tailor according to their budget.
How does User Segmentation Work?
Cryptocurrency is primarily self-custodial. A wallet can connect to any Dapp and switch to another chain or protocol at any time. The costs of switching in the traditional economy are usually high whereas in the crypto economy this has low switching costs by definition.
As the switching costs are very low within the blockchain space it is essential to offer better products and services and market to the “A clients “ — i.e., clients with good wallets or addresses.
How can this be done?
At SmartCredit.io we developed a User Segmentation API that analyzes the past behavior of addresses. It ranks the addresses and tells you which will most likely generate future revenue.
For example certain wallets may have used lending products more than others therefore these wallets are classed as high value clients so therefore our product will be able to identify these potential clients as well as allow cefi/defi protocols and companies to approach these clients and tailor according to their budget.
The combination of big data and AI is here to stay and our innovative product will allow Smart Credit as well as Smart Trust to provide a product that will revolutionize the Cefi/Defi space and be a pioneer in the blockchain space.
How to integrate User Segmentation?
The following steps should be followed:
1. The ChainAware.ai User Segmentation API should be queried when an address connects to your Dapp
2. Offer better conditions if an address has a good rank
3. Offer the standard conditions if the address has a lower rank
Ultimately, 10% of your clients will generate revenue for you. It’s just a matter of finding out who this 10% are in which we have the solution too.
SmartCredit.io Case-Study
SmartCredit.io has integrated the Big Data based Segmentation API tool:
- When a wallet connects to the website The Segmentation API is activated collecting data and giving the client the necessary information needed using ABC Classification,
- The Dapp will have banners and advertisements, which are dynamically changing based on the ranking of the wallets that are using the protocol or platform,
- High-value wallets will see different banners and advertisements compared to the average-value wallets.
- This will result in a better and more professional conversion rate for high-value clients.
Which Data do we have?
This data — calculated via Big Data and via AI is available in the Crypto User Segmentation API:
Lets re-iterate one more time:
- most of Web3 applications see only the wallet address
- Crypto User Segmentation API allows to see much more about the wallet — the categories, experience, fraud score, credit score and predictions for the future actions of the wallet
About SmartCredit.io
SmartCredit.io has implemented many innovative technologies and business concepts:
- Fixed-term, fixed-interest-rate for the Borrowers
- Personal Fixed Income Funds for the Lenders
- Effective collateral usage via Positions Monitoring System
- Asset-Liability-Maturity Mapping for avoiding the bank-runs
- AI-based Crypto Transactions Monitoring
- AI-based Crypto Fraud Detector
- AI-based Crypto User Segmentation
SmartCredit.io vision is to become AI-driven self-custodial neo-bank and to offer all the capabilities which the traditional banks offer. But self-custodial.
Additional Info
AI & Big Data: https://chainaware.ai
Borrow & Lend: https://smartcredit.io
Twitter: https://twitter.com/ChainAware
Twitter: https://twitter.com/smartcredit_io
