salary deposits are obviously the holy grail for neobanks to create stickiness but there’s several reasons why it’s not trivial to achieve
first, habits are deeply entrenched
most people set their salary bank details once when they start working for a company and are unlikely to go through the hurdle of changing after
once the salary comes into the account, your outgoings like direct debits for rent, insurance, mortgage etc. are all connected to that account and it becomes a hassle to close the account
this is why bank customers have among the highest lifetime value (LTV) of any product segment
many people keep their first bank account for their entire life
the second reason is more technical and has to do with the inadequate banking rails used by neobanks
most neobanks give you a virtual iban allowing you to deposit funds but it’s not a full bank account capable of direct debits for recurring payments like rent and it’s not localized
e.g in the EU your neobank will give you a Lithuanian IBAN (LT…) bc the Lithuanian regulator is the most fintech friendly but you’re based in Germany and the dinosaur payroll software used by your employer only works with a DE 🇩🇪 IBAN
the good news is that there’s a whole segment of young people, travellers, freelancers etc. who are way more flexible and willing to jump through some hoops in exchange of a good UX (low FX, cashback etc.)
this is the early adopter segment that e.g Revolut grew with before obtaining more banking licenses and connecting more local payment networks to go after more normie audiences
Lite ETH Vault operations are back to normal with 6.27% APR.
Lite Vault users have experienced no losses, $25M withdrawal liquidity has been replenished, and all reserves remain fully verifiable onchain.
The aWETH Redemption Protocol is now live on @Arbitrum and @Base.
After processing $400M+ in redemptions on Aave Ethereum, we're expanding to L2s.
This time, we’ll be opening up for all loopers to unwind while ETH lenders exit to LSTs.
How it works 🧵
If you live under a rock for the last 4 days, this is for you 🫡
Full recap of the rsETH / Kelp DAO exploit!
Includes:
- Detailed walkthrough of what happened
- Turmoil and contagion it created within the broader DeFi space
- Available options to resolve it
YT 🔗 in comment
Introducing aWETH Redemption Protocol
With ETH utilization at 100% on Aave, many lenders are currently unable to withdraw and face increasing risk if markets move.
aWETH Redemption Protocol allows ETH lenders to:
• Exit into wstETH or weETH
• Regain immediate liquidity
• Reduce exposure to liquidation risk
If you’re just lending ETH — you can fully exit.
If you have ETH collateral and another debt — your collateral is seamlessly swapped into wstETH or weETH while your debt remains the same.
We’re working alongside @LidoFinance , @ether_fi, @0xProject, @1inch,
@KyberNetwork, and other ecosystem partners to:
• Reduce systemic risk in DeFi
• Ease utilization pressure
• Support a healthier DeFi market
Our goal is simple: protect users while reinforcing the foundations of DeFi.
Capacity is initially limited to $1B in ETH.
https://t.co/VBIAT9FZyg
Growing security related product trend in DeFi
Just this week:
1) Safenet by @safe: Guardian network run by security companies to pre-screen your txs
2) Revoke Cash: browser extension that runs in parallel to your wallet
3) @OpenCover: insured yield vaults
More of this 👏
We just shipped the biggest update to the Revoke extension ever.
New features, new partner, and a completely overhauled approach to protecting your wallet.
Here’s everything 🧵
PRODUCT SPOTLIGHT
@dreaming is a mobile app focused on trading spot, perps & options in one unified interface.
They have nailed the difficult task of making options UX as easy to use as Robinhood did for stocks.
since the twitter algo changes i have been finding it increasingly hard and time consuming to find signal on the timeline
back in 2021 there was 'the daily ape' which was really good but stopped in the last bear market
i am determined to bring crypto optimism back by helping people find the daily news that matter in this space
BREAKING: LIDO DAO PROPOSES ONE TIME $20M $LDO BUYBACK AS TOKEN HOVERS NEAR ALL TIME LOW - THESE MARKET PURCHASES WOULD ABSORB 8% OF CIRCULATING SUPPLY