Expansion of multichain USDS and fiat on/off ramps for the NEAR Ecosystem (Proposal Followup)

Hello NEAR,

I am following up on Stably’s proposal to expand our multi-chain stablecoin $USDS and provide fiat on/off ramps infrastructure for the NEAR ecosystem.Our team is interested in scheduling a meeting to discuss our proposal and answer any questions your team may have. We submitted our proposal through the NEAR Foundation Grants page on April 25th and have not heard back.

We are in active communication with Erin K. Lamb, who has guided us through the entire process and has been a lot of help. Before Erin, Stably had tried multiple times to connect with the NEAR foundation since late 2021 and never received a response.

Stably provides blockchain ecosystems with stablecoin infrastructure to help bridge institutional liquidity from traditional finance (TradFi) to decentralized finance (DeFi) in a compliant manner. The USD stablecoin market has exploded from nothing to almost $200B within the last 5 years (over 600% CAGR). Stablecoins and wrapped tokens* also make up 10-20% of the current crypto market as well as all DeFi TVL. Additionally, stablecoin trading volume far exceeds both BTC and ETH combined. Needless to say, stablecoins will continue to play an important role in DeFi and the metaverse for years to come, hence the big opportunity to on-ramp trillions of fiat dollars into stablecoins.

Stably is keen to introduce the following product to the NEAR ecosystem

  • Stably Dollar - USDS is issued by Prime Trust, a Nevada state-chartered trust company and SEC-qualified custodian, and backed by full reserved assets, 1:1 USD. Prime Trust also serves as the virtual currency administrator and regulated issuer of USDS under US laws

    • Cohen & Co. - an industry leader in stablecoin auditing, will conduct monthly attestations for USDS across all blockchain networks it lives on, including NEAR, in order to ensure 1-to-1 USDS:USD collateralization at all times

    • USDS is blockchain agnostic and can also be rebranded (white-labeled under a different name on the NEAR Protocol if necessary. As an example, USDS can be rebranded as “NUSD” [similar to VeUSD on VeChain]

    • The NEAR ecosystem has created an amazing algo stablecoin USN, however, given recent algorithmic stablecoin concerns we believe there will be an increased demand for compliant and fully collateralized stablecoins. Fortunately, by expanding Stably’s Stablecoin-as-a-Service solution onto NEAR the ecosystem will be in a position to dominate market share from stablecoin competitors such as USDC and USDT.

  • Stably Prime and Stably Ramp are stablecoin agnostic, which allows for USDS (NEAR), USN, and other NEAR native stablecoins set to be integrated. This partnership will automatically provide institutional and retail users in the US and over 200 different countries with a simple 1-click fiat to crypto on/off-ramp solution.

    • Through Stably’s partnership with Prime Trust our platform is able to provide traditional institutions with custody and alternative fiat to crypto options such as ACH (instant ACH coming soon), wire (domestic + international), and cryptocurrency (stablecoins + major cryptocurrencies).
    • Stably Prime trading rates are very competitive even against Coinbase, which is attractive for institutional and HNW users on NEAR. Additionally, Stably has OTC partners and can provide traders with the best rates at all times.
  • Stably Ramp

    • direct buy and sell of stablecoins at a low cost
    • Custom wallet integrations allow users to seamlessly go in and out of DeFi while using superior payment methods including SWIFT, Fedwire, ACH, credit/debit cards as well as NEAR.
    • Competitors such as Moonpay are industry leaders in fiat-to-crypto card transactions, however, our team believes that the best way to drive usage on NEAR Protocol is through institutional onboarding and by reducing friction for new retail users. Stably Ramp will allow for DApps to integrate a 1-click fiat-to-crypto solution directly into their project.
    • Stably Ramp: Fiat on/off Ramps - https://link.stably.io/stably-ramp-widget
      • Page 6: Competitor Comparison chart
    • Account Verification / Know Your Customer (KYC) is conducted through Prime Trust to (1) ensure all customer fiat assets are securely held in custody with a member FDIC insured US bank and (2) to perform KYC/AML (Know Your Customer / Anti-Money Laundering) verification. The utilization of a qualified custodian is a safeguard and a regulatory standard adhered to by traditional finance. As a direct result of this relationship, customers will have a Prime Trust account created when registering for a Stably Prime account or onboarding through Stably Ramp.

Project milestones:

Week 1: Set up Process with auditor Cohen & Cohen

This is required to let the USDS reserve auditor Cohen & Cohen know of the expansion to verify full collateralization at all times.

Week 1 - week 2: Set up stablecoin on test net

Upon setup, the stablecoin will be launched on the NEAR Protocol testnet

Week 1 - Week 3: Back-End Integration of Rust

This part is necessary to ensure communication of Stably’s API with NEAR Protocol. Specifically, this means signing, sending, and querying for transactions. Assuming that two requirements are fulfilled to ensure timely delivery:

  1. A public node exists that can be used to broadcast and query for transactions

Week 3 - Week 5: Issuance and redemption engine integration of NEAR USDS or branded stablecoin

Implementing the crucial logic for issuance and redemption of NEAR USDS. Stably will be able to leverage its existing issuance of & redemption technology cutting down delivery time while ensuring the security

Week 5 - Week 7: Front End

Allowing users to buy and sell NEAR USDS via the Stably Prime web platform

Week 6 - Week 8: Production

  • Bridging USDS onto mainnet
  • Productionization of Stably Prime integration: Making sure everything works in production and mainnet, this is when the real first transaction happens

Week 6 - Week 9: Marketing and PR

Our marketing team will work closely with NEAR to create a blog post and ensure a successful launch

Week 8 - Week 9: Zendesk Help Articles & Videos

(After launch) Description of how Stably Prime users can buy $USDS natively on NEAR

TBD: Wrapped Token

Is your project open-source?

No but the team can create or contribute to an open-source SDK and prefer to use an open-source standard for token smart contract

How will this impact the NEAR Ecosystem?

While NEAR provides all the necessary infrastructure to grow a vibrant ecosystem, Stably is able to enhance its DeFi ecosystem by providing compliant stablecoins, fiat on-ramps/off-ramps, and custodial token bridges. Stablecoins are the foundational lego blocks behind these and DeFi itself, as they are easily tradable, lendable, and now producing double-digit interest rates in some cases.

We can partner and integrate with dApps in the NEAR ecosystem including AMM + DeX, Wallet, NFT, and metaverse platforms. These DApp integrations will allow institutional and high net worth users to compliantly convert fiat-to-crypto and swap stablecoins in a quick, affordable and secure manner without leaving the ecosystem.

  • We seek integrations with NEAR projects such as:

    • AMM / DEX - Ref Finance
    • Wallets - NEAR Wallet
    • NFT Platforms - Mintbase
  • Cross-chain Ecosystem: Ethereum, VeChain, ICON, Tezos, Stellar, DigitalBits, Quantum, and Chia Network

  • Plug & Play integration: Support for NEAR Protocol integrations with easy UX including a 1-click fiat-to-crypto

  • Direct Buy/Sell via Traditional Bank Account: Allows institutional and HNW users to directly purchase and sell stablecoins using their bank account (via ACH and Plaid integration)

Stably will measure success in a few ways:

  • Average volume + number of institutional users onboarded onto Stably Prime
  • Average volume + number of individual users onboarded onto Stably Prime
  • of DApp integrations + partnerships within 12-months

  • Market Cap stats similar to VeUSD on Vechain Stats https://vechainstats.com/token/veusd
1 Like

I think stablecoin diversity is helpful on any layer1 when those stablecoins have high standards for quality and ongoing security review/bounty/red team/etc. There may be some appropriate conditions for this proposal, however I hope it is approved. At a minimum it can be helpful trading against USDC/USN/DAI/nUSDO

1 Like

Hey,

Due to the scale of this, it’ll need to go through the grants program: NEAR Foundation Grants

Further to that, since it’s DeFi-esque, it’ll be best to apply directly to Proximity.

Best of luck!

1 Like

Hey David,

I already submitted it to the NEAR Foundation but have not received a response.
Is there someone I can reach out to directly for an update on our proposal?

In the meantime, I will apply directly to Proximity as well.

When did you do this?

1 Like

I submitted it on April 25, 2022 at 7:21 pm PST