A Dai Payment App like Venmo

First, I want to say that I believe Maker and its stablecoin Dai is one of the most ambitious legitimate projects in the crypto space to date. TMK, Dai is the only stablecoin which is backed by crypto securities, making it both reasonably independent yet stable.

On the Maker core values page, specific adoption goals are stated:

We believe the unbanked will immediately benefit from this economic inclusion and see a resulting increase in quality of life by giving them access to the global financial ecosystem through the use of Dai as a predictable and stable unit of account. This new and untapped market comes with a very low cost-to-acquisition that will accelerate Dai’s entrenchment in the global marketplace.

There are a few current practical issues which are limiting Maker’s ability to reach this goal:

  • transaction fees: nobody wants to pay them for sending $10 when you can just use cash or another alternative that has no fees.
  • difficulty in onboarding: the user needs an ethereum wallet and usually gas in order to get started.
  • loose peg: for those moving funds in or out of Dai from USD will have to deal with changing rates, even if its just by a couple cents

In addition, in the US itself, there is almost no reason to use Dai outside of Ethereum because it offers no benefits over real USD.

A year or two ago these issues would not have had a good solution. With the introduction of the meta-transactions, the DSR, and possibly side-chains coming in the new future, these issues can be alleviated. There is an interesting article on Medium about meta-transactions, and we could use an optimized version of the concept to issue Dai transfers without requiring any use of Ether from the end-user. The cost of the transactions can be covered by the Stability Fee, which would grow at roughly same ratio as the number of wallets if such an app were to become popular. Since there is no transaction costs, there is no need for onboarding. The crypto credentials can just be generated automatically on the user’s phone. Finally, the Dai peg would technically continue to be of concern, and there is little that can be done to control that, but the DSR allows for accounts to grow in value over time, which gives users a benefit to leaving funds in the app, used or unused. It seems like this app would not require much to have this functionality, but maybe I am missing some problem.

The purpose of this thread is to inquire as to if there has been any discussion on making a end-user-focused Android or iOS app which specifically addresses these issues and allows regular people to seamlessly exchange funds without detrimental barriers. Somehow I do not believe this topic could have been missed, yet I have not been able to find any threads about it on this forum. In the case such a project has not been discussed, would it be open for funding and support from Maker (for paying meta-transactions gas) if I wanted to take on the task?

Looks like you are describing Argent, which doesn’t bother its users with paying gas fees and integrates dai savings rate natively. There are also wallets that use meta-transactions and dai as a primary currency like Authereum. Finally, there is stablecoin.services, which can be used to send dai without any need to have ether.

yep, looks like what I described does exist! Appears I am just uninformed.

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