Unlocking liquidity and incentivizing users: Turtle Club’s vision for sustainable Web3 growth

Esfandiar “Essi” Lagevardi, Founder and CEO of Turtle Club, and Benedikt “Ben” Schulz joined CryptoSlate’s Editor in Chief Liam “Akiba” Wright and CEO Nate Whitehill on the latest episode of the SlateCast. The duo shared insights on how Turtle Club is revolutionizing liquidity monetization and user engagement in Web3 by shifting the paradigm from value extraction to value creation.

Redefining Liquidity Provision in Web3

Essi described Turtle Club as a protocol focused on empowering users to monetize their on-chain activities across partner protocols, chains, and decentralized applications (dApps).

“We’ve built a distribution protocol that allows anyone with a network to monetize user activity and return value to those generating it,” he explained.

Essi emphasized the inefficiencies of traditional liquidity provisioning models, which he likened to “protocol-level loan sharking,” leading to adverse outcomes for stakeholders.

Turtle Club’s approach addresses these inefficiencies by tracking users’ activities and distributing rewards based on protocols’ incentivization priorities, such as swap volume or liquidity contributions.

Building Sustainable Incentive Models

One challenge Web3 protocols face is sustaining long-term user engagement. Essi highlighted that many protocols rely on short-term incentive campaigns that result in temporary spikes in activity, followed by steep drop-offs.

“If your protocol doesn’t add sufficient value or utility, transitioning to a sustainable model becomes extremely challenging,” he stated.

Instead, Turtle Club proposes a gradual, curve-like incentive model. Essi explained, “Start with moderate incentives to build traction, and as the protocol proves its value, transition to a sustainable framework while reducing dependency on subsidies.”

Innovative Use of Treasury for Long-Term Value

Ben elaborated on Turtle Club’s unique approach to treasury management, distinguishing it from other DAOs. Instead of selling tokens received from partner protocols, Turtle Club reinvests them into DeFi ecosystems.

“We run nodes, participate in lending and borrowing markets, and stake tokens to generate yield,” Ben noted.

This strategy ensures long-term sustainability and avoids the negative impacts of token dumping, which often destabilize partner protocols’ ecosystems.

“Our focus is on fostering symbiotic, long-term relationships with partners. This sets us apart,” he added.

The Role of the TURTLE Token

The TURTLE token serves as the backbone of Turtle Club’s ecosystem, capturing value from all activities within the protocol.

“The token essentially gives users exposure to the collective value being generated across our partner network,” Essi explained.

As more protocols and users engage with the platform, the token’s value scales proportionately, reflecting the growth of the ecosystem.

Partnering for Success

Turtle Club has successfully partnered with leading protocols, such as Ether.fi, Renzo, and Swell, to bootstrap liquidity and incentivize user activity. These partnerships have contributed to a total value locked (TVL) exceeding $1.5 billion. “We’ve aligned with protocols offering competitive rewards and use cases that resonate with our users,” Essi noted, emphasizing the importance of working with high-quality partners.

Towards Decentralization

Looking ahead, Turtle Club aims to transition into a fully decentralized organization. Essi outlined a vision where community-driven governance becomes central.

“Our goal is to empower token holders to dictate the protocol’s future while establishing mandates to streamline decision-making,” he said.

Turtle Club’s roadmap includes releasing new whitepapers and rolling out V2 enhancements to strengthen its foundation.

Conclusion

The SlateCast episode with Esfandiar Lagevardi and Benedikt Schulz shed light on Turtle Club’s innovative approach to liquidity monetization and incentive alignment in Web3. By creating a symbiotic ecosystem that benefits users, protocols, and stakeholders, Turtle Club aims to redefine how value is created and distributed in decentralized finance.

As Web3 continues to evolve, Turtle Club’s focus on sustainable growth and user empowerment highlights the potential for protocols to transform the landscape, paving the way for a more equitable and efficient blockchain ecosystem.

Episode Hosts

Liam Wright

Editor In Chief at CryptoSlate

Also known as “Akiba,” Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate.

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Nate Whitehill

CEO & Co-Founder at CryptoSlate

Nate Whitehill, a technology entrepreneur with nearly two decades of experience developing web applications, plunged into digital assets upon discovering Bitcoin.

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