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Merlin Egalite
@merlinegalite
→ Wallets and Fintechs are converging. Web3 native apps and services are way too complicated for newcomers to navigate. To onboard the next millions onchain, there’s an urgent need to improve the UX and accessibility. At the same time, wallets must find a path toward usability and profitability to continue innovating and provide their users the best experience and safety. They need ways to provide value-add beyond just access to onchain apps in their products. Both @ledgerofficial and @trustwalletapp are leaders in non-custodial wallet spaces and both are exploring value-add services on top of their core offerings. It will be clear that wallets and fintechs will look very much alike in a few years.
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Merlin Egalite
@merlinegalite
→ Why is it an important step for wallets in general? For a long time, users wanted diversity of choice and optionality. So, they used whatever wallet they could to connect to DeFi protocols or web3 projects to which they had affinity. This has changed. Wallets have understood that they're not just providing a simple noncustodial wallet; they're the gateway to the onchain world. One classic example is Coinbase's revamp of Coinbase Wallet to be the gateway to all Coinbase onchain products and more. The next growth target is those who aren't Web3 native and coming from Web2. They are usually less technical, or don't really care about having full optionality and discovering new projects every day. They just want something that is native in the wallet interface so that they can do what they need to do: swapping one asset for another, getting onchain yield, taking out an onchain loan on a Sunday from their phone, etc. → So, how do you solve this? Bundling products within the same simple interface.
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Merlin Egalite
@merlinegalite
→ Why bundling? When products are bundled into the wallets, the UX is easier for users, there are fewer choices to be made, which results in better conversion. It's also easier to monetize (just take a rate on the swap or the interest generated). It’s win-win, both users and wallets benefit from this. If the user does not want to face the fee, they can still go directly to the protocol. This is the magic of Web3. It started with swapping first, as it’s the easiest to integrate. Next, it’s loan products. Soon, all wallets will offer native earn and borrow products. Morpho just kick-started the trend. TLDR Wallets will bundle more products into their interface to onboard more users and generate more revenue. The next phase is loans, and Morpho provides the infrastructure to make this happen.
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