Making Ethereum Accessible to All with Layer 2

Transcript

so i'm amitamar the co-founder of argent for those who don't know argent we are smart wallet on ethereum right now securing assets hundreds of million of dollars for relatively large users uh fully non-custodial but with a lot of features like seedless recovery social recovery and other security targeted features but today we will try to share some of our thinking about how do we move from that to a more mainstream audience and how do we solve uh what needs to be solved in order to expand uh too much more people first maybe one thought we have on mainstream

adoption we don't see mainstream adoption as a billion people certainly buying ease or tokens and and speculating or trading we see it more as a solving thousands of use case each for millions of people you might have millions of people playing games uh millions of people using defy or payments uh millions using dao rather than a billion people farming basically on every new chain out there when but when you look at crypto today uh we see it as really a scary complex and expensive space we we spend a lot of the time talking to users uh or people who want to be users and we see a lot of

stories i mean talking to students who work in bars at night to pay their tuitions and suddenly making it in crypto uh earning like life changing amount of money for them being able to pay their tuitions for years waking up a morning with a wallet fully empty uh today people do not sleep well at night when they hold crypto in a non-custodial way it needs to be it needs to be much more simple to be secure and a billion people will not be saved the way it is now and we see an acceleration of of these horror stories i think recently with nfts you have much more people entering the space that are less tech savvy and they they cannot be safe in this environment so our vision as a company is really

empower everyone to control their assets so being non-custodial is core it's it's about being simple and that's what we mean by being seedless because having uh having really a seed phrase in a drawer or in a vault is not a great experience how do you make that secure non-custodial and of course low cost if you want to scale so we arjun has been there for a few years and we solved i would say three of those problems we started really by inventing social recovery so really bringing a recovery model that doesn't require you to store a seed phrase but beyond that is really you being protected even if your private key is compromised so arjun introduced elements of fraud monitoring basically so if you

use arjun and you trade or put money in compound or ave you you want it will be simple you put an amount you tap a button you are done but if you try to use more complex application you will need extra signature which is basically like 2fa for the crypto world and overall making all that simple uh so that worked great started to have a lot of users a lot aum but we ended up a bit in this situation where now we have internally we say we are in this tesla road surface we have an amazing product people who can afford it love it i would say 99 of the population cannot afford it it's a smart contract you need to to put it on chain it cause gas every transfer on a thermal one costs a

fortune so we know we cannot reach a mass audience that way and most of our users are whales with millions of dollars sometimes to secure our largest wallet was 500 million this is definitely not uh what the mainstream audience uh needs so here comes l2 people cl2 has a big saver i mean it's a massive step in that direction but i would say it's the start of the next chapter um there will be much more work needed on l2 to really bring billions of people but we have we have a starting point there uh the l2 environment is is very big uh there's a lot of options out there so at arjun i would say we like to take um

different approach to many uh anything really long term and our bet right now is really on zk roll ups so won't go in the details of all the options out there but for us the k roll up was a natural natural choice it's low cost it's quite cheaper than other roll up options uh you have fast finality you have at the end you have a theorem security uh and one thing we saw in the past few months where i think that was the most unknown is we got conviction that smart contracts are around the corner so we we spend a lot of time with the ksync and startnet uh you can see smart contracts coming zkvm is really there test net probably will be this year

uh and so we're like okay we can build on that and then start growing use cases in next year and i would say the cherry on the cake for arjun is that bossy casing and starknet have account abstraction and it's quite important in the context especially of arjun um and it matters to us because we see smart wallet as the only way or probably the the key to bring non-custodiality to a mainstream audience and the the julian my co-founder wrote a good blog on that you can look at it on our website arjun.xyz is that if we don't bring this new kind of security and recovery what will happen is we'll have to manage private keys then people will have to trust to

start trusting third parties to store their key and basically you will you'll be back in a state of five ten custodians managing keys for the entire world and we will have lost this permissionless and non-custodial world so bringing this kind of recovery but on chain is the key for us to really have a mainstream non-custodial world um and so account abstraction what it brings us is that every single account on z casting on start net is a smart contract there's no more like an argent wallet account versus an eoa we are all smart contract uh it's the default and that also means for us it's simple design and much more cost efficient because right now cost is the big issue all that computation is on chain that means gas overhead now you are moving computation

of chain so what we're about we're in a beta phase now so we've started onboarding users but you realize you can already some you can create quite nice experience so we have um l2 on ramp direct so you will use ram to buy your crypto straight on l2 so as cheap as it can be for even from that initial transfer you never interact with l1 you can trade you have defy so you can earn yield on stable coin earn yield on ease and then obviously payment so big question is how do you do defy because today there is no smart contract uh on this equal app it's not yet live so we use the ksync the current version that doesn't have smart contract and we

use actually defy pulling to basically lower cost by a factor 100 plus x by basically pulling a lot of users into a single l1 transaction actually quite simple so you have all your users on l2 and we bring liquidity on l2 so here's an example with yearn crvsdes pool so we we bring that on on l2 user do atomic swap so fully trustless their rate is guaranteed there is no trust needed towards argent and then once this pool um is depleted arjun goes back on l1 and we fill the the pool and that means you can serve a hundred or thousand of users with a single l1

transaction we have a smart contract on l1 handling that end user basically are almost gas free or i would say you can you can get there between 30 cents and a dollar depending on on gas cost because you still have an impact on gas cost so concrete example let's buy that crv ste yearn pull token on l1 you would typically take your e's deposit in lido you'll get sde so staked east to learn is to sticking reward you will take your ste's you will do a near c20 allowance into curve then you will deposit your stes and e's

into curve you get crv sdes still following me so almost there you do an allowance of your crvsdes into yearn and then finally you are done you deposit your crvst is into yarn and you get your urine see our and you start earning yield so a lot of our users do that on l1 it's painful and it's extremely expensive so if you jump onto how we do it now on l2 which should work if the connection is good enough yeah so it looks like urgent today for those who know it we show you all your yield option you will click on the yield boost option

you will say i want five e's but you could do it with five dollar you invest you are done you from a user perspective that's it ten seconds you will see the investment uh in your app it didn't cost you anything in gas and it was as simple as you can imagine noria citroen yellow once a single atomic transaction so that's that's something we're bringing now uh it's really around the corner it will i would say we'll onboard more users this month and it should be public once you are satisfied with the beta in the coming weeks um now what's the next step the what you can see on both zcasing with their v2 coming in start net is full full smart contract coming live so that

should happen in the coming months that's the big step for us uh because we can finally have our origin as a full smart contract wallet on l2 right now you still there are still some actions that you would take on l1 for example social recovery happens on l1 we have enough chain recovery but if the full censorship still comes from l1 once we can move into a full smart wallet on l2 we have full censorship resistance directly on l2 and then finally you get full access uh to permissionless dap ecosystem once those evolve on both zika singh and starknet probably i would say by the beginning of next year so in term of of next step for you

if you want early access you can join our waitlist it's as easy as putting an email you go on flash.org at xyz you have up to 285 000 in price you have nothing to do it's just a sweepstake you should do it uh and those funds come from all our partners that i should thank so we'll we we are working with the casing for this launch we'll have integration with rv with yearn with lido with ramp with power swap with indexed so all that will be available at launch on our layer 2 and there's a lot of money to earn so go join the waitlist and happy to jump on on questions if there are any

thank you um hi yeah this looks really cool um i just have one question um on d5 sorry can you speak louder sorry um is this better yeah um i'm just curious on d5 pooling would you require to have collateral on layer one or layer two to do the whole kind of like batching of like hundreds of users or do you expect those transactions from the users to be very close together so they could be done as one on layer one so i don't think i fully heard it but uh i will try to re-explain if i pulling so we have a liquidity pool it doesn't matter when how many users interact with it when they can do it over a few minutes

over a few hours um zika roll up um the withdrawal period on zika up is short so it can be 30 minutes an hour it's not seven day like an optimistic rollup so whenever with this we reach a threshold and we don't have enough liquidity on l2 we do a transaction on l1 if that liquidity is not too barely used it can be a week later we can do it every hour we can do it after months it's super flexible and you do so the more volume you have the more gas you have saved for for users on l2 one more question i can hear me okay

all right uh a big fan of the product i like the emphasis on security and the module system you have i'm curious if argent would ever consider going into like the dow tools space and add multisig functionality to bring what you have to daos so is the question did we consider dao as a to serve those this mark to serve dao as customers yes yeah so i would say it's a topic that comes regularly in the team um overall our focus is really on the end users for now we think we are very very far from having solved it if you look at the mission our mission and the fact that our users have millions of dollars we're like we didn't make it

mainstream yet um and i would say when we think about dialogue gnosis safe is really who would recommend in some way you know this safe is more targeted at big businesses or dao and we would be there more as a service for individual i'm not excluding one they would do it but i think we still have a lot more work to do with with end users thank you so much