Today, in the second installment of our series on AVI’s mini-thesis, Plaid for Crypto (discussed above), we introduced iDOS and Fabric to discuss their views on the mini-thesis and how they might contribute toward its realization. Insights from the call will be shared shortly. The recording can be found here!
Below is a summary of key take-aways from each discussion.
iDOS
Speaker: Lluis Bardet
IDOS provides a framework for securely sharing identity data across blockchain applications. The discussion emphasized the role of reusable identity verification in accelerating the institutional adoption of DeFi.
Key Challenges Identified:
- Identity & Compliance Barriers: Keeping up with compliance requirements can easily add unexpected costs for DeFi teams. At the same time it’s not a step that can be skipped, especially when onboarding institutional-grade liquidity.
- Regulatory Uncertainty: Current KYC/AML frameworks do not seamlessly integrate with blockchain-native ecosystems.
- User Experience in OpenFi: Reusable identity could lower onboarding friction for new users.
How IDOS Can Support Arbitrum Ventures and the Ecosystem:
- Compliance-Friendly Infrastructure: Providing a standardized identity layer to help fintechs & TradFi players access protocols in Arbitrum’s DeFi ecosystem safely.
- Enable Attracting Institutional Liquidity: Enable DeFi teams to onboard regulated capital providers by offering secure, compliant identity solutions.
- Advising on Compliance: Working with Arbitrum Ventures to support their portfolio teams and assist in shaping AV’s institutional engagement strategy.
Fabric
Speakers: Anil Hansjee & Ian Emerson
Fabric Ventures, a leading Web3 venture firm, covered the growing intersection between fintech and DeFi and its impact on stablecoin-driven payments and liquidity management.
Market Opportunities:
- Infrastructure for Open Finance (OpenFi): Building key middleware to streamline Web3 adoption for traditional businesses.
- Sticky Liquidity: Ensuring stable and KYC’d liquidity pools so that DeFi solutions can be considered and implemented by Fintechs and institutional players.
- AI-Enabled Smart Wallets & Privacy Solutions: Allowing users to invest, deposit, login and more with a simple command in the same app, instead of navigating multiple front ends.
How Fabric Can Support Arbitrum Ventures:
- Investment Structuring & Co-Investments: Assisting AVI in designing capital deployment strategies aligned with Arbitrum’s ecosystem growth.
- Market Monitoring & Research: Collaborating on thesis development and identifying investment opportunities.