# User Labeling

User labeling helps identify and categorize users based on their on-chain behavior, enabling more targeted and effective incentive strategies. OpenBlock Labs uses advanced analysis techniques to understand user engagement and long-term value.

#### **Methodology**

At a high level, OpenBlock’s user labeling methodology involves analyzing transactional patterns to profile users based on their activities, such as liquidity provision, trading, and borrowing. By examining the frequency and volume of these interactions, we can assign labels to users that reflect their commitment and involvement in the protocol.

We also consider behavioral metrics like user net worth and engagement level, helping us assess the potential long-term value of each participant.


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