LTIPP Application: XDEFI Wallet

Applicant Name: Kevin Beardsley

Project Name: XDEFI Wallet

Project Description: XDEFI is one wallet for all your crypto.

  • XDEFI supports more blockchains than any wallet in the world, including Arbitrum and every EVM chain, every Cosmos chain, Bitcoin, Solana, THORChain, TRON, NEAR and Maya.
  • XDEFI has 230k+ active users and has supported Arbitrum for all users globally since June 9, 2022. https://twitter.com/xdefi_wallet/status/1534883807857451009

Team Members and Roles: Emile Dubie (CEO), David Phan (CTO), Kevin Beardsley (COO), and a team of 35 passionate builders.

Project Links:

Contact Information

Point of Contact: Kevin Beardsley

Do you acknowledge that your team will be subject to a KYC requirement?: Yes

SECTION 2a: Team and Product Information

XDEFI is the largest independent multi-ecosystem wallet.

  • We have been building since 2020
  • XDEFI has 230k+ active users.
  • 4.8 star rating in the Google Chrome store after 625 reviews.

Team Experience:

  • Emile Dubie, CEO - formerly Bloomberg, Reuters and BCG DV
  • David Phan, CTO - formerly BCG DV and several startups
  • Kevin Beardsley, COO - formerly Kraken, B2C2 and Elwood.

Our team is listed publicly on our website.

XDEFI is notable because it supports more blockchains than any wallet in the world:

XDEFI has offered native support for all Arbitrum assets and NFTs since June 2022.

  • $80m+ in assets have been bridged to Arbitrum via XDEFI in the past six months to Feb 23, 2024.
  • It is important to note that with XDEFI, your Arbitrum assets and NFTs show up automatically in your portfolio, unlike MetaMask, where you need to switch to the Arbitrum chain to see your assets.

In addition, XDEFI Wallet supports:

  • All EVM chains (via native integrations and custom RPC)
  • All Cosmos chains (via native integrations and custom RPC)
  • Solana
  • Bitcoin
  • TRON
  • THORChain
  • Maya Chain
  • NEAR

XDEFI’s commitment to growing the Arbitrum ecosystem already spans almost 2 years, when we first began working on the Arbitrum chain integration (back in April 2022).

Relevant usage metrics:
This is how XDEFI Wallet compares to major exchange extension wallets:

  • Coinbase wallet: 1m users
  • Trust wallet: 900k
  • OKX wallet: 600k
  • XDEFI Wallet: 230k
  • Crypto .com: 90k
  • Kucoin: 20k

Source: Google Chrome Store

What novelty or innovation does your product bring to Arbitrum?

  • XDEFI supports all Arbitrum assets and NFTs
  • XDEFI supports in-wallet swaps for all Arbitrum assets.
  • XDEFI allows users to swap and bridge assets to Arbitrum from 29 blockchains.
  • XDEFI Webapp allows for single-sided staking into dozens of Arbitrum pools
  • The Gas Tank (launching Q2 2024) allows users to pay their gas fees from a single account. This will mean users no longer need to hold ETH on Arbitrum in order to transact.

Is your project composable with other projects on Arbitrum? If so, please explain:
XDEFI Wallet connects to all Arbitrum dapps, supports all Arbitrum assets and NFTs, and we have natively integrated multiple swap integrators in the Arbitrum ecosystem.

How do you measure and think about retention internally? (metrics, target KPIs)
We value user privacy and do not track IP information.
Our primary metric is the Google Chrome store data, which says we have 230,000+ active users.

Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan: Yes

Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal? If so, please disclose the details of that arrangement here, including conflicts of interest (Note: this does NOT disqualify an applicant): No

SECTION 2b: PROTOCOL DETAILS

What date did you deploy on Arbitrum mainnet?: June 9, 2022
https://twitter.com/xdefi_wallet/status/1534883807857451009

  • XDEFI launched publicly in November 2021 with support for nine chains: BTC, ETH, THORChain, Matic, Luna, LTC, BNB, DOGE, BCH and BSC.
  • We added AVAX in Q1 2022, and launched Arbitrum support as our 11th chain on June 9, 2022.
  • Note: We added Arbitrum before Cosmos, Solana, TRON, and many other chains.

Do you have a native token?: Yes, further info is available here.

$XDEFI is only deployed on the ETH network at this time. The contract address is: 0x72b886d09c117654ab7da13a14d603001de0b777

Past Incentivization:
We received an airdrop from the Arbitrum Foundation at TGE, and gave 100% of the funds back to the community via our referral program and a huge campaign with Circle’s CCTP that drove >US$150m in swap and bridge volume, much of it to Arbitrum.

Current Incentivization:
XDEFI has 230k active users around the world. We do not run a campaign to incentivize users - they use the wallet because it solves a real pain point for them.

Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program?
No, aside from the airdrop which we distributed to the community, we have never received a grant from any Arbitrum ecosystem entity.

Protocol Performance:
XDEFI has 230,000+ active users and is one of the largest multi-ecosystem wallets in the world. (Source: Google Chrome Store)

We value user privacy and do not track IP information. Unfortunately we are not able to provide additional details about our users.

Protocol Roadmap:

  • We recently became the first and only wallet to support custom networks (Custom RPC) on both EVM chains and Cosmos chains.
  • Our next major feature release will be the Gas Tank (target launch Q2 April 2024). The Gas Tank allows users to spend a centralized balance to pay gas fees across 36 blockchains. The Gas Tank is the focus of this proposal.
    • The $ARB requested in this proposal will need to be swapped for $ETH on the Arbitrum network to pay the users’ gas fees.
    • For the sake of clarity, the $ARB will ONLY be swapped for $ETH on Arbitrum, and ONLY used to pay user gas fees on the Arbitrum network.
    • Also worth noting that the gas fees will be revenue for the sequencer so will stay in the ecosystem.
  • Following the Gas Tank, our next major release will be a revamped version of XDEFI wallet as well as a mobile application on Android and iOS (Q3 2024).

Audit History & Security Vendors:

Security Incidents:
XDEFI has been operating since 2021, has 230,000 active users, and has an impeccable security record, having never been exploited.

SECTION 3: GRANT INFORMATION

Requested Grant Size: up to 50,000 $ARB

We would like to implement an ‘Arbitrum Gas Holiday’ for all users on Arbitrum.

  • 100% of funds will be spent as gas on the Arbitrum blockchain for real users.

    • In practice it will need to be swapped to $ETH on Arbitrum to pay gas fees.
    • These funds will effectively go back to the Arbitrum sequencer as revenue.
    • User benefit: Users will no longer need to get ETH on Arbitrum to bridge or transact.
  • We will be able to provide blockchain evidence for all funds spent and have stringent anti-bot measures in place.

  • We will return any unspent funds to the Arbitrum Foundation.

  • This completely removes friction for users to try Arbitrum and explore the ecosystem.

  • We will put stringent anti-bot measures in place to ensure real users benefit from the grant. Anti-bot measures include rate limits on gas requests and maximum amounts that can be requested by a single wallet.

  • We would like to receive in tranches of 10,000 $ARB. We will convert the ARB to ETH on-chain as we need it in order to fund the Arbitrum Gas Holiday.

    • 50k $ARB represents the maximum amount. If for example, users only spend $8k worth of gas on Arbtirum over 12 weeks, then we will return the remaining $2k, and the total grant amount would be $8k.

This is a first of its kind campaign. It is designed to completely remove barriers for users that want to bridge to Arbitrum and explore the Arbitrum dapp ecosytem.

Additional context:
Our flagship feature for Q2 is the “Gas Tank”, which allows users to deposit $USDC and/or $XDEFI and spend that balance as gas across all supported networks.

For the Arbitrum Gas Holiday, XDEFI will use 100% of the LTIPP grant funds to subsidize our users’ Arbitrum gas.

With XDEFI Wallet, it will be free for users to bridge to Arbitrum and transact on Arbitrum:

The $ARB requested in this proposal will need to be swapped for $ETH on the Arbitrum network to pay the users’ gas fees.

For the sake of clarity:

  • The $ARB will NOT be swapped for $XDEFI.
  • To clarify: None of the funds requested will be spent on development.
  • 100% of funds will be spent on gas on the Arbitrum network.

If not all of the funds in a tranche are spent during the 12 weeks, we will return unspent $ARB to the foundation.

In addition, we would plan to run a large scale campaign to drive users to try different Arbitrum ecosystem projects. We would expect to at least:

  • Promote the campaign to all users globally via a pop up in the extension.
  • Promote it via multiple tweets (112k followers), in our Discord (19k users)
  • Add a banner to our website www.xdefi.io
  • Amplify the message via TBD influencers

Our last two campaigns with Zetachain and Circle CCTP had 26k and 23k unique participants. If we receive this grant, we will promote Arbitrum heavily to our 200k+ users, and we anticipate that it will drive a significant portion of our user base to Arbitrum.

Grant matching:
We will promote Arbitrum heavily to our users globally, because Arbitrum will be ‘free’ to use with XDEFI wallet.

Grant Breakdown:
100% of funds will be spent as gas on the Arbitrum blockchain. We will be able to provide blockchain evidence for all funds spent and have stringent anti-bot measures in place. We would like to receive in tranches of 10,000 $ARB. We will convert the ARB to ETH on-chain as we need it in order to fund the Arbitrum Gas Holiday.

  • Funding Address: 0xF4E083b175800f97c6f2bF1aEA06a7C946AA1e4a
  • Funding Address 2 of 4 multisig on Gnosis Safe with keys stored on geographically remote hardware wallets.
  • Treasury Address : 0x6ebC49c6bda9BAF75E631e83eF8A91Fa256F7a51
  • Contract Address: N/A

SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES

Objectives:
We aim to bring tens of thousands of new users into Arbitrum by allowing them to bridge to Arbitrum and interact with Arbitrum dapps for free via an “Arbitrum Gas Holiday”.

Please note that because 100% of funds will be spent on Arbitrum gas, the funds will effectively be returned to the Arbitrum sequencer as profit through the sequencer.

Execution Strategy:
We will heavily promote the Arbitrum Gas Holiday to all users globally, as well as on our social media channels.

XDEFI will use 100% of grant funds to subsidize our users’ gas fees on Arbitrium, allowing tens of thousands of new users to bridge funds to Arbitrum and explore the Arbitrum dapp ecosystem.

We have requested a commitment of of 50,000 $ARB tokens, which can be sent in tranches of 10k if preferred, and we will provide proof of how funds were spent as gas before requesting the next tranche.

Any unused funds after 12 weeks will be returned to the Arbitrum Foundation.

The XDEFI Gas Tank should launch in April 2024, and we would need the first tranche of 10,000 $ARB 2-3 weeks before launch for testing and to prepare promotional material.

We will promote this heavily via in-extension pop ups, on social media, in our ‘favorite dapps’ panel, and via influencers. We expect to continue featuring the Arbitrum Gas Holiday for all users globally until funds run out.

What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?

Today, gas tokens are the biggest friction point in Web3. Our support team receives a dozen or more tickets every week with users unsure how to transact on Arbitrum.

The Arbitrum Gas Holiday will ensure users no longer need to worry about gas, and will deliver a seamless and enjoyable experience for all users trying to bridge to Arbitrum or interact with Arbitrum ecosystem projects.

Specify the KPIs that will be used to measure success in achieving the grant objectives and designate a source of truth for governance to use to verify accuracy.

Our specific KPI is the number of new unique addresses that bridge to Arbitrum and interact with the Arbitrum ecosystem. We will promote the Arbitrum Gas Holiday heavily and over a sustained period of time, so we anticipate upwards of 100k new users will try Arbitrum.

Grant Timeline and Milestones:

We would like to receive the first 10,000 $ARB of the grant 2-3 weeks before we launch the Gas Tank. At this point the Gas Tank will be in testing and we can provide somebody at Arbitrum with a build to verify it works.

We will then provide blockchain evidence for all $ARB spent, and the transactions for which gas is paid.

100% of funds will be used to subsidize user gas fees on Arbitrum.

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?

For the first time ever, users will be able to bridge USDC to Arbitrum and seamlessly interact with Arbitrum dapps without first finding ETH on Arbitrum. This will be an enormous leap forward for adoption in the Arbitrum ecosystem.

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?

Yes, we would like to receive it in tranches. However we are certainly open to different tranche sizes. The timing of tranche disbursement will depend entirely on the rate at which our individual users spend gas on the Arbitrum chain.

SECTION 5: Data and Reporting

Please note: Because 100% of the funds will be spent as gas on Arbitrum, the grant funds will effectively be returned to the Arbitrum sequencer in the form of profit.

Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO? Are there any special requests/considerations that should be considered?

Yes.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?

Yes, we can publish the $ARB gas spending in real time.

Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? This report should include summaries of work completed, final cost structure, whether any funds were returned, and any lessons the grantee feels came out of this grant. Where applicable, be sure to include final estimates of acquisition costs of any users, developers, or assets onboarded to Arbitrum chains. (NOTE: No future grants from this program can be given until a closeout report is provided.)

Yes

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?:

Yes

5 Likes

Hello @xdefi_kevin,

Thank you for your application! Your advisor will be SeedLatam Gov @axlvaz_SEEDLATAM.eth @pedrob.

Please join the LTIPP discord and ping your advisor in the general chat so they can create a new channel and start communicating with you.

2 Likes

Hi, we just wanted to let you know that we are already in contact through discord