Yodl - Onchain Payment Stack

Transcript

[Music] [Applause] [Music] Hi everybody. Sorry. I'm the Yodel master at Yodel and we are building an Apple Pay but cardless entirely built on crypto stable coin web 3 infrastructure. This talk is about the journey how we went from a humble DEP into a super DEP.

There's two parts. How we can pay with the old pay in the old world traditional regulated uh payment networks. And the second part is how we enable the new world to build their own payment rails according to the principles we like decentralized permissionless non-custodial. So what is a super app? It started in China with Alip Pay and VChat Pay. They basically reserved a container for thirdparty developers to build little mini apps within their host app alipe and they could could use the host functionality such as paying.

This trend didn't really catch on in the west or outside of China in general, but now you can see it more and more with super deps like Worldcoin and Farcaster. They basically allow you to tap into their user base and use the payment the functionalities they have. Now with Yodel we are building a superdep with an audience that wants to pay in the real life. We have a few more functionalities for that but the pri priority right now is payments for everyday things in the shop with the tokens in your wallet. And that's how it looks. You go into any regular shop, you use your wallet, you pick the token you want to pay with. It works directly from

the home screen or the action button. In this case, he's paying USDC, but he can pay with any token, including Pepe. Then he confirms the payment and signs with the private key in his wallet. This works with any wallet, with any key that you have, with any token on most chains. Now this QR code is not our QR code. It's the existing QR code of the merchant or the payment processor. We simply recognize the QR code and make the payment happen.

Uh this will be live soon. Join the wait list uh now as soon as possible. The earlier the better as you know. And that's basically following the original dream of Satoshi. He wanted to build a peer-to-peerbased payment system where your crypto is money and where you sign your payments with your private keys. The reality right now is the following. You've got an Apple Pay wallet where you load a credit card into the wallet and that enables you to pay with the credit card balance in the respective payment network. These payment networks are on the top of the food chain in the payment industry and are worth hundreds of

billions in market cap each. They have an addressable market of about 100 million merchants typically. Next up, you get yourself a little crypto credit card. You sign up at a cryptocard issuer like Kosis Pay, your KYC. Then you deposit a specific token on a specific chain. You authorize and approve Kosis Pay to make a payment happen. And then you tap your credit card. When you tap, Kosis Pay will pull the assets from your deposits to authorize the payment in the payment network.

Now, that's the issue. It's not your crypto really that you want. It's the crypto like Nosis Pay wants you to use on the chain they want you to use. It's not your key either. It's the card issuer who will pull the money with their private keys from your wallet and with that it is not a peer-to-peer payment will never be by definition you need a middleman to make the payment happen now pay is different we basically once you scan a QR code we have a payment request and you select the token you want to pay with we aggregate the best routes you can pay with any token you sign with the wallet you already have

and then it's sent onchain directly and the issuer of uh uh the blue code issuer we have will receive the stable coin that they require to authorize a payment in the blue code network. Now what is uh blue code network? It's a payment network that started in Austria. I was first engineer and CTO. It's series B company so I know it very well. The key thing the thing that not many people know is they have developed something revolutionary which is a payment roaming. So you cannot just or you're not limited to their payment network. They will integrate and in have integrated lots of other payment

networks including Alipay and all the payment networks that are part of Alip Pay. So you can pay worldwide in Asia with that system. There's more payment networks uh in Europe that are being signed up as you go, including Discover Dinos Club where you can tap and pay at the merchants that do not yet support the mobile based payment flows. Now, we don't stop there. We can basically integrate any payment protocol either through this payment aggregator or ourselves. We of course also support all the crypto-based payment protocols.

hopefully soon also the Shopify so you can pay with your pay with any token uh in the Shopify USDC based payment flow. Uh crucially it's your keys, it's your crypto and we also have a pass towards peer-to-peer payments. You simply replace the QR code and then the merchant can receive the money directly. Now for you as a user, you're getting a DAP, a DAP that you can load in the inner browser of your wallet. You can load it in your browser and connect to your wallet. Works with pass keys, works with EOA wallets, anything. If you want to tap and pay, you have to get our native app which is coming soon.

Now, that's the first part. How we pay in the old system at the regular merchant. So, the merchant doesn't have to do anything and you simply can pay. But what about the new thing? And so, I'm sort of going from bottom up now. How everything works. So the initial problem we had back then was how can I get my parents to send me €100 worth of USDC. Addresses are complicated. ENS names didn't work consistently and still are not properly and uniformly supported. So you never will know if it properly will work with the wallet off the sender.

Then there's a few more issues. There's so many USDCs and exchange rates from euros to USD is not clear. So, we built something simple, a payment link. The payment link includes your destination address, an ENS name, and you can configure your payment preferences in the URL. In this case, it's I want to receive USDC on a few L2s. I can send that to the the sender and he will then be able to send me fiat money uh like in US dollars, euros. We look up the price feeds and so on and convert it into the correspond corresponding destination token amount.

Once he selected the amount, he can pick the token that he want to pay with and we aggregate all the taxes to automatically swap into the token that the recipient wants. Finally, once the payment is done, we create human readable receipts. We skip the entire blockchain magic that you have in block explorer pages. We also render nice little preview cards so it shows directly in your WhatsApp or Telegram or Twitter feed. And eventually we realized these URLs are getting too long and out of sync.

You send your link to somebody and you change your address, your tokens and so on or you put it on a QR code, you want to update that. But where do you keep those payment preferences? We found a way. There is a magic piece called ENS and they have text records in your ENS records. So we simply take the payment preferences and put it into your ENS text record. Next time you open your payment link, it's automatically looking up the records and configuring the payment link. You can update it after effect and it updates for everybody else.

Now then we went crazy and said now we have a way to store user preferences in ENS in a decentralized way in a standard way and we added more features such as customizable preview cards so you can have fun social media friendly preview cards for your links. Make your app a little bit more viral. You can completely customize with your own uh renderer as well. Code is open source. you can just copy it. And then you came to the next problem. How do you get notified when a payment happens?

So instead of sending you emails or something like that, we simply tell you you can configure your own web hook that we will trigger whenever a payment happens. And we created a little telegram bot that you then can either take use yourself and customize or use our own to basically get notified every time you hit a payment. One project that does that very well it's the pedal battle auction platform. They have implemented all our features and MEP they simply get the bits of the people put it in a telegram group and everybody's notified and there's a little bidding war going on because it's instant took him five minutes to configure that and very easy to build these little payment systems.

Next problem is how do you actually save your friends and build an address book like you have in your traditional payment thing. And last year I met I was at the ECC and I learned about EFP Ethereum follow protocol. Excellent protocol that keeps on giving I have to say. So we started with the address book and you simply follow a friend and that puts him in your address book. The cool thing is once you're bored of your old and you want to move to a different app, the address book and the graph travels with you.

Now we started with the address book obvious but then you realize this is actually a great social graph trust core metrics you open you can't trust a QR code really it's easy to fake it's easy to fake a name or an address but it's very hard to trust somebody's follower uh to fake some somebody's follower uh list so with that you're always sure that you're sending it to a correct address and you're not being scammed. Next problem. We're all getting thirsty and we invented a beer tap mini app. This is a beer tap. It has a mini app.

I'll explain later. And you can scan 3 minutes. All right, let's look at it. Mini app. You can buy a beer. Tap unlocks. Beer tap unlocks automatically. Tap a beer. That's using our mini app framework that you then can do basically do anything using the systems we have in place. If you like the mini app, you simply follow them. It puts them into your super dab as your shortcut. And with that, we have a decentralized YAP store that you done. All right.

[Applause] [Music]