DeRef

🤐 DeRefer is a decentralized referral system that leverages royalties to onboard users and engage communities. Our platform enables seamless growth through incentivized referrals while ensuring data privacy through zero-knowledge proofs. DeRefer empowers projects to harness viral adoption without compromising sensitive information.

User Journey: Step 1: Account Creation (WorldID) Users access the DeRef platform and create an account. Users need to already have a WorldID dApp logged with a WorldID account

Step 2: Wallet Connection Users access the DeRef platform and connect their preferred wallet (e.g., Metamask, Wallet Connect) to their DeRef account. The platform supports multiple wallet options for user convenience

Step 3: Profile Verification Users verify their profile using World ID, a decentralized identity verification system They scan the World ID code and receive a confirmation message upon successful verification

Step 4: Referral Actions Users can choose between two actions: generating a referral code or using an existing referral code If generating a referral code, users click on the "New Referral Code" button

Step 5: Referral Code Generation Upon clicking "New Referral Code," users receive a unique invite link The invite link can be easily copied and shared on various web2 social media

Step 6: Referral Rewards Users earn rewards when their referred individuals successfully refer others The referral chain continues up to a maximum of 3 referrals per user Users receive their rewards once the referral conditions are met (i.e. their referred individuals have made certain purchases)

Step 7: Using a Referral Code If users choose to use an existing referral code, they click on the "Use Referral Code" button The user copies the referral link provided by their referee The user can share this referral link with a maximum of 3 other users

Step 8: Automatic Referral Rewards When a referred user joins the platform using the shared referral link, they automatically receive a payment in the form of a Fan token directly in their connected wallet. This royalty system incentivizes users to join the platform and encourages them to refer others

Step 9: Referral Chain Perpetuation Each newly onboarded user has the potential to refer a maximum of 3 friends, continuing the referral chain As new users join through referral links, they also receive the Fan token reward in their wallet This creates a self-perpetuating referral system that incentivizes user growth and engagement

The project consists of three main components:

1. WorldID: We integrated WorldCoin SDK to seemlesly verify users onboarding to the platform. They provided the infrastructure to uniquely store user into the smart contracts instead of generating the user model from scratch.

2. Zero Knowledge Proof using Noir from Aztec Protocol We generated the ZK-based validity proofs using AZTEC's Noir language built in Rust. We are verifying the hash leveraging the keccak256 algorithm by generating proofs on chain and verifying them on chain.

3. ENS subdomains We have integrated the ENS subdomains allowing users to claim custom ENS domains for their referral links, this way providing users with a personalized referral experience. Instead of sharing generic referral links, users can have branded domains that reflect their identity, making it easier to promote the platform within their networks.

The mechanism design consists of three parts:

1. Referral Invitation: Referrers can invite others to join the referral campaign by generating unique referral codes using a zero-knowledge proof system or an ENS domain. If users wish to protect their identity, the referral codes are generated using ZK-proofs, a cryptographic method that preserves the privacy of both the referrer and the referred party. If the users want to keep the referral public, they can use the ENS domain. The referral codes are stored onchain in hashes.
2. Referral Tracking: When a referred party joins the platform or makes a purchase using a referral code, if users want to mantain their privacy, the system verifies the possession of the code using ZK-proofs. The verification process ensures that the referral is legitimate without revealing the identities of the involved parties. Upon successful verification, the referral rewards are credited to the referrer's account on the blockchain.
3. Referral Rewards Distribution: The referral rewards are automatically distributed to the referrers based on a predefined royalty structure. The distribution of rewards is triggered by smart contracts on the blockchain, ensuring transparency and immutability.