Is it better for Zapper to focus on cross-chain integrations or deepen our offerings within Ethereum-based DeFi?

Introduction

The trade-off we're examining today is whether Zapper should focus on cross-chain integrations or deepen our offerings within Ethereum-based DeFi. This decision is crucial for Zapper's growth strategy and market positioning. I'll analyze this trade-off by considering user needs, technical feasibility, market trends, and business objectives.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Zapper's current market position. Could you share our current user base size and their primary use cases for Zapper?

Why it matters: Helps understand if we're serving a niche or broad market Expected answer: 500,000 monthly active users, primarily using for portfolio tracking and swaps Impact: Large user base might favor deepening Ethereum offerings; smaller might benefit from expansion

• Business Context: Based on our revenue model, I assume we generate income from transaction fees. Is this correct, and are there any other significant revenue streams?

Why it matters: Aligns solution with our primary revenue drivers Expected answer: Yes, transaction fees are primary, with some revenue from API access Impact: High transaction volume on Ethereum might favor deepening; diverse revenue streams could support expansion

• User Impact: I'm curious about our user retention rates. Do we see higher retention among users who engage with multiple chains or those who stick to Ethereum?

Why it matters: Indicates which strategy might improve user stickiness Expected answer: Multi-chain users have 20% higher retention Impact: Could lean towards cross-chain integration if significantly higher

• Technical: Regarding our current architecture, how modular is our system for adding new chain integrations?

Why it matters: Affects feasibility and resource requirements for cross-chain expansion Expected answer: Moderately modular, requires some refactoring for each new chain Impact: High modularity would make cross-chain integration more attractive

• Resource: Can you give me an idea of our current team composition? Do we have more Ethereum specialists or cross-chain developers?

Why it matters: Determines our readiness for either strategy Expected answer: 70% Ethereum specialists, 30% with cross-chain experience Impact: Team composition might initially favor deepening Ethereum offerings