One of the first lessons in marketing is to find a niche and fill it. However, this is not as simple as it seems. Or “seams”, to use a baseball pun.
Let’s say you conducted extensive research on the contrast between playing baseball with a white ball versus a fluorescent orange ball. Your study concludes that there is a substantial increase in visibility for players and fans alike. The market is global. Now, you set out to market your new, improved orange baseball.
Academically, all the boxes are checked. Marketers exclaim about its novelty and the global market potential. Focus groups delve into the science of vision and unanimously conclude — it’s gonna be a hit (sorry, another pun).
So, you pitch (oops, another baseball pun) your new orange baseball idea to baseball teams. What happens next falls into one of two scenarios:
- They embrace your “idea”.
- They reject your “idea”.
An “idea” is not the only factor in building this thought into a business. The reality remains — you will face a significant hurdle (almost impossible hurdle) in supplying these new balls. Why?
When introducing a new idea, understanding the market players (pun intended) and the traditions and institutions you seek to disrupt is crucial.
Let’s break down the baseball scenario as you meet with team level decision makers:
Firstly, “they” may reject your idea due to baseball’s deeply rooted tradition. The mere mention of “baseball” conjures an image of a white ball with red seams. Not just any red, but a deep dark red. Altering this color tradition alone could create a stark divide between old and new, impacting ticket sales — a season-to-season experience has been built and resonates across generations of fans. It is the same reason while most jerseys stay consistent.
Secondly, “they” might love your idea. You’re hailed a genius, and everyone wants to give it a shot. But here’s the catch — the entrenched baseball manufacturers aren’t likely to yield quietly. They possess established infrastructure and supplier relationships, able to produce orange balls at a lower cost than you. See the problem?
Thus, disrupting an industry requires anticipating traditional players’ responses and identifying sustainable competitive advantages that aren’t easily replicated. Even better is when they are not legally allowed to respond even if they want to — like a traditional bank versus their ability to serve the DeFi space.
Skew is disrupting finance in two distinct ways. Traditional finance legally avoids crypto lending and borrowing. DeFi platforms diverge from traditional finance safeguards such as due diligence and risk management, lacking safe and comprehensive banking services.
Banks restrict crypto deposits and offer minimal interest rates on all deposits (which they will lend to others). In contrast, Skew accepts fiat or crypto deposits. These deposits earn APRs with Skew of up to 20%, with banks paying 1–2% APR on average. Additionally, Skew’s debit card offers cash back tiers, a perk uncommon in debit accounts but typical in credit cards — a “pickle”” (yes, another pun) for traditional banks to explain their lack of competitiveness against Skew.
DeFi protocols often reward APRs in volatile “native” tokens, requiring conversion to stable coins, which may lead to loss in real APR and token swap fees. Skew mitigates these risks by paying all APR in stable coins and offers accredited borrowers 100% borrowing against collateral, safeguarding against liquidation if loan terms are met.
Unlike most DeFi, Skew operates non-custodially, ensuring users retain control over their funds or lending activities. The risk of hack or exploit is much lower with Skew by comparison to other protocols. Most significant for borrowers, even amidst market volatility, Skew refrains from collateral liquidation under compliant loan terms.
Unlike selling a traditional baseball in a new color, Skew pioneers a superior game. Traditional banks face regulatory obstacles in crypto lending, whereas Skew thrives. DeFi remains disjointed from fully regulated Web2.5 financial models, vulnerable to risks like hacks, exploits, and collateral liquidation.
At Skew, we’re revolutionizing finance — it’s a home run!
