# AVI Mini-Thesis: "Plaid for Crypto" **URL:** \ **Category:** General\ **Created:** [December 24, 2024, 4:06am UTC](https://forum.arbitrum.foundation/t/avi-mini-thesis-plaid-for-crypto/27986 "2024-12-24T04:06:34Z")\ **Posts on this page:** 1\ **Showing post:** 3
**Author:** ![ArbitrumVentures](https://yyz1.discourse-cdn.com/flex029/user_avatar/forum.arbitrum.foundation/arbitrumventures/32/11502_2.png) [@ArbitrumVentures](https://forum.arbitrum.foundation/u/ArbitrumVentures)\ **Post date:** [February 14, 2025, 12:48pm UTC](https://forum.arbitrum.foundation/t/avi-mini-thesis-plaid-for-crypto/27986/3 "2025-02-14T12:48:47Z")
## Recap: AVI Ecosystem Investment Thesis Discussion #1 (12.2.2025) Yesterday, we hosted the first in a series of calls focused on AVI’s mini-thesis [Plaid for Crypto](https://forum.arbitrum.foundation/t/avi-mini-thesis-plaid-for-crypto/27986) (TL;DR below). This session aimed to: - Align delegates on AVI’s investment strategy and emerging opportunities. - Introduce key stakeholders interested in collaborating with AVI. - Identify concerns and questions to address in follow-up discussions. During the call ([recording here](https://drive.google.com/file/d/1sFoR1Zz_Y79UaAR0YAoU-HQqCdP1vLIM/view)), we introduced two organizations—IPOR and Strobe Ventures (formerly BlockTower Ventures)—to explore their perspectives on the mini-thesis. Both bring strong institutional expertise and track records and are interested in working with Arbitrum Ventures toward the realization of this vision. Below is a summary of key take-aways. ### TL;DR “Plaid for Crypto” Mini-Thesis Building the infrastructure and liquidity solutions to allow for integration with neobanks and fintechs for mass onboarding. ![](https://canada1.discourse-cdn.com/flex029/uploads/arbitrum1/original/2X/4/46c725d6d23f2970d378f7873e95756e5179e1b8.jpeg) We’ve made enormous progress as an industry in the past 5 years. We have an ambitious plan that does come with its challenges: Disconnect between Web3 and Web2: - Sticky liquidity is needed for enterprise friendly solutions, - Markets are inefficient - Liquidity is fragmented We need a culture shift towards a highly sophisticated, medium risk, medium yield-bearing environment building confidence in DeFi solutions as a viable counterparty. ### IPOR Discussion - Strengthening Liquidity and Institutional Integration Darren Camas from IPOR outlined the protocol’s role in enhancing DeFi liquidity and addressing institutional engagement barriers. IPOR functions as a benchmark rate protocol and has developed IPOR Fusion, an automated system for optimizing capital deployment in lending markets. #### Key Challenges Identified: - Liquidity Stickiness: DeFi liquidity is often transient, shifting due to incentives rather than forming a stable capital base. - Institutional Barriers: Compliance requirements, KYC restrictions, and fund segregation make it difficult for traditional financial entities to participate in DeFi. - Bridging Web3 and Web2: Simplified access to DeFi yield products is essential for adoption, particularly through fintech integrations. - Arbitrum’s Role: IPOR’s presence on Arbitrum suggests that additional liquidity support is needed to attract institutional capital and sustain growth. #### How IPOR Can Support Arbitrum Ventures: - Liquidity Optimization: IPOR Fusion improves capital efficiency by directing liquidity where it is most effective on Arbitrum. - Institutional Access Solutions: IPOR is exploring regulatory-aligned mechanisms to help institutions engage with DeFi securely. - Simplified DeFi Yield Access: Through fintech partnerships, IPOR aims to create user-friendly entry points for broader market adoption. Learn more about IPOR and the type of support they can provide AVI [here](https://docs.google.com/document/d/1vdzwfB0eRy_LlhaUeqCnHmx4e1v0M_JZsYS7tqzEYC0/edit?tab=t.0#heading=h.1dhuf2306ai6)! ### Strobe Discussion - Emerging Investment Themes for Ecosystem Growth Steven Venino from Strobe Ventures (formerly BlockTower Ventures) emphasized the importance of structured investment strategies to support Arbitrum’s long-term growth. He highlighted specific areas where targeted investment could have the greatest impact. #### Investment Priorities: - Ecosystem-Aligned Investment Frameworks: Strobe has structured LP agreements that tie capital to ecosystem expansion. - Focus on Onboarding: With DeFi infrastructure maturing, the next focus should be onboarding users via fintech and Web2 integrations. - Emerging Investment Themes: - Stablecoin-Based Payments: Utilizing stablecoins for cross-border transactions to increase financial accessibility. - Traditional Asset Perpetuals: Supporting regulated derivatives markets for more diverse financial instruments. - AI-Driven Wallets & Zero-Knowledge Tech: Exploring AI-powered financial automation and privacy-focused solutions. - Liquidity Support for DeFi: Facilitating early-stage capital to projects like Gearbox to strengthen adoption. #### How Strobe Can Support Arbitrum Ventures: - Investment Structuring: Strobe can assist in designing vehicles that align Arbitrum’s capital with high-potential opportunities. - Aligned Values: Strobe is strongly aligned with AVI’s creation of a venture capital consortium to monitor market trends and shape investment strategies in the Arbitrum ecosystem. - Liquidity Provisioning: Strobe can help secure co-investments to deepen liquidity for promising protocols. Learn more about Strobe [here](https://www.notion.so/blocktower/Overview-of-Strobe-Ventures-fka-BlockTower-VC-for-AVI-17c695628f9e8097b93ccda1d3e60d73?pvs=4)! ## Want to Get Involved? 1. Gain context in the [Deliverables Hub](https://forum.arbitrum.foundation/t/avi-deliverables-hub/27987/1), with a special emphasis on “[Plaid for Crypto](https://forum.arbitrum.foundation/t/avi-mini-thesis-plaid-for-crypto/27986)” 2. Join us for our upcoming AVI events - Thesis Deep-Dive Calls: Focused on liquidity solutions & fintech integrations. Add them to your calendar: [Wednesday](https://lu.ma/paewuj8d), [Thursday](https://lu.ma/0udn0a9z), [Friday](https://lu.ma/el516lca) - ETHDenver Office Hours (March 1st): In-person discussions on investment strategy and next steps. Add it to your calendar [here](https://lu.ma/6w3jm90o)! --- _[View the full topic](https://forum.arbitrum.foundation/t/avi-mini-thesis-plaid-for-crypto/27986)._