ETHMilan26 - What's Holding On Chain Swaps Back From The Next 1 Billion Users?

Transcript

Hey guys, how's Eth Milan going? Good, good, good. So, in case you guys didn't catch that, my name is Nick D'Aloisio, and I am over at Trust Wallet doing BD. Uh if you'd like to connect, you can grab some of my socials, whether it be LinkedIn or Twitter, whatever it might be. But today we're going to talk about what's really holding users back from the next 1 billion transactions on chain. So, I want to do some a little bit of historical context. For those of you who have been in Ethereum longer than a year, you know that Ethereum was expensive, and I mean, at peak times, we're talking over $50 to send a transaction. This is unacceptable in today's standard, especially. Now, I have to give the Ethereum team a huge amount of slack and a lot of them credit here.

We've cut Ethereum fees by over 95% and just in the last few EIPs. Now, this is an amazing milestone for everybody in this room, right? You can now actually send someone $5 without paying 50 to do such a thing. But, this is still a problem in UX. When you're comparing this to the traditional centralized exchange solutions, whether it be your Venmo, your PayPal, whatever it might be, people don't know that this gas fee exists. They just click a button and they expect it to work. Now, what if this wasn't just cheaper? What if this wasn't a problem at all? Now, this is kind of an idea I want to iterate on for the rest of this presentation. So, talking about this again, imagine you have a bank account. Now, as soon as you

put money in the bank, whether you like it or not, you're earning yield. Now, if you're in the US, it might be penny on the dollar. If you're in a larger bank, like a Goldman, you might be getting a few percent APY. But, you didn't have to click opt in. You didn't have to click stake. You didn't have to sign a smart contract. You didn't have to pay native gas. You didn't have to do all of these different things. You're not required to do a rent exemption. You You have to match your balance on chain. All of these things are abstractions that are getting way of the user from actually interacting on chain. Now, this creates a serious problem when you're talking about a billion users. This is fine for everybody in the room. We might know these things exist, but how are you going to get your mother, your brother,

your father, someone who's not aware of these things in the first place to start interacting? So, again, it's the same idea. When you're trying to send someone money today, like let's think about this. If I pick someone from the audience, and if I was going to send you some USDT, you give me a wallet address. That's wonderful, but what chain? All right, great. Let's say it's chain Ethereum. It could be BSC, Tron. Great. Now, I need gas. Well, hold on. Before I even do that, I got to swap into the native token of that chain. I have to get gas, bridge my assets, and then send it over. This complexity doesn't need to exist.

So, let's just keep going here. So, when you're going from a centralized exchange, or let's say a traditional market maker, you just have a bid, you have a buy, you have a mid-market price, everybody's happy, we're matched up. In crypto, it's not so easy because you have the problem of slippage. You have delays between block timings. If you don't do it right, you can't your transaction fails. If you set your slippage too high, suddenly you're overpaying. All of these big friction points create a huge problem for people who don't know they exist to begin with. Again, when you're sending crypto, you have to worry about chains and the support of the asset on the opposite side. So, this creates another big hurdle.

So, there are some existing solutions today, but they're very limited in scope. Maybe it supports a particular pair. Maybe it's this particular solution for a particular trade. This is wonderful, but it's not solving the key problem. And then again, when you get the idea of self-custody, you just have to hold their keys. People are scared about this, but same time, there's some recovery solutions, but they're a bit centralized. So, when are we going to wake up and finally realize it needs to be like an Apple product. Think about AirDrop. You don't need to know someone's MAC address, you don't need to know their Bluetooth ID, you just say, "Hey, this person's next to me. I'm going to drop them a file." What if sending money was that easy?

So, let's talk about how we can eliminate one of the friction points today. So, let's talk about specifically gas. So, my theory was that gas was the biggest hurdle. So, what I went and did is I looked on chain and said, "Hey, all of these failures on chain, what is the number one?" And time and time again, it was gas. So, I set up a little experiment to see what would happen. So, the idea is what if we just sponsor transactions that would otherwise fail? So, what I mean by this, if a user is trying to swap, let's say USDT into any other token, and they have zero BNB, as soon as it gets to the RPC, it's going to fail, right? Because they have no BNB. Again, people don't

know this exists, so they don't know that the problem is there. They don't know why it fails. So, the idea is let's abstract that. I'll pay for it. Let's just see if it fixes the problem. So, in the interest of not going bankrupt, we did set some limitations. So, it's only four transactions, two approvals, two swaps per day per wallet, and then we only sponsor profitable, meaning you can't swap 10 cents, it's got to be at least like 50 or 100 bucks. We have to make the money somehow, right? So, you might say, Nick, "How much of an impact was this?" Well, I these numbers can't lie, right? Over 132 million dollars on BNB alone. And this is only same chain swap, guys. This is huge in less than a year. We see these amazing

numbers. So, we didn't just stop there. We rolled it out on Ethereum. We rolled it out on on Solana as well. But again, what about if we didn't just stop there for people who who it? What if we just eliminate this friction all together? So, before I tell you about this amazing solution, in case you want to take advantage of it today, whether you're using Trust Wallet today or not, it's perfectly easy to get started. You can just import your existing seed phrase if you use another wallet. If not, create a brand new wallet today. You can test it for yourself.

So, the very special announcement for the first time today, you'll see it live on Twitter and LinkedIn, everywhere else on socials, and in the app starting now. Um thanks to our friends over at Blink Labs. For the next 30 days, all traffic on BSC is going to be sponsored in Trust Wallet. So, regardless if you have BSC in your wallet or not, it's not a problem. We will take care of it. So, example, again, you might have a 100 USDT, whether you're swapping, you're staking it, or you're earning your yield on your passive assets, or you're simply sending it to a friend. Don't worry about it. It's covered by us. Now, again, in the interest of not going bankrupt, there are some limitations.

You cannot send a thousand transactions per day and expect it to work, okay, guys? I know what you're thinking. We're going to spam the network. No, please don't. We have preventative measures in place to stop things like that from happening. But, the general idea is still there. This is going to have a massive improvement on UX for the user. They don't have to think about this gas because now it's just free for them. So, then I want to talk about the limitations of it only being BSC today. Now, I know what you're thinking. This is great, but Nick, maybe I don't use BSC.

Well, I hear you. I hear you. BSC is a great chain. I love it and all, but the big ones are ETH, SOL, TRON. That's the one I get every day, time and time again. Now, these ones are a little bit more tricky because they're not as cheap as BSC. Now, reminder, BSC, anyone know how much it cost? Any guess on a swap? Any ideas? >> 10 cents. >> Not even. It's actually half a cent. It's 1/2 of that's stopping these hundreds of millions of dollars from flowing in per transaction, right? So, we're talking about the approval, the swap itself. Again, now we start getting into Ethereum, Tron, these are a bit different because you have energy, you have these staking requirements, so it

can skyrocket anywhere from, you know, 10 to 20 cents up to $2. So, these are slightly different conditions. We're going to have to do a little bit more special math and make sure they work out for everybody. But, the general idea is still there. Now, I hope you all enjoyed this presentation. I implore you to please try it. And I hope that today, Trust Wallet is one starting paving the way of being a centralized exchange experience on a DeFi Web3 wallet. So, thank you so much and have a great ETHBerlin, guys. >> Woo!