Round 11
Winner
UseBonafideWeb

Convert your cryptoassets to local currencies directly from your web3 wallets while saving on fees and without 3rd party services.

Budget request:  
$50,000
*
WebsiteCode

Project Stage

Development

Category

Cross-Border Payments

Based in

The team is based in different part of the world as we all work remote. We plan on keeping a remote based culture.

Team size

3

Active since

2021
Products & Services

UseBonafideWeb is a platform that allows users to directly convert crypto asset to fiat, cash and mobile money, based on their location in Africa. We’ve created a platform that users does not need to interact with other individuals or centralized exchanges in converting their crypto assets to cash. We’ve found away to eliminate fraudulent peers and keep the platform compliant with regulatory requirements in the world. We are making use of available blockchain analytics tool to assess wallets before transactions are completed to ensure we do not become a conduit for off-ramping illicit funds. Also, the platform ensures users save on fees and are protected from fraudulent P2P individuals that increases risks on transactions.


How it works

Users connect their web3 wallets to the platform and initiates a conversion transaction based on supported crypto assets they have in their wallets. These conversions are made to African currencies in real time and deposited into the provided local currency account. We’ve implemented a transaction threshold to ensure we have the appropriate data on the transactions. Coupled with available data on the blockchain and transaction patterns, we have the opportunity to assess each transaction’s risk accordingly.


How it uses Stellar

Because the flow involves two distinct phases to complete transactions, the offramp aspects to local currencies will be performed by Anchors on Stellar Network, approved and vetted by Stellar. Essentially, all flows of transactions from every single blockchain network (ETH, SOL,AVAX, POLYGON, BSC etc) will be off-ramped on Stellar network. This brings to life the essence of Stellar to becoming the open network for storing and moving money.

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Previous Project(s)
Round 9
Winner
Bonafide
Digital dollar wallets for Africans anywhere.
Learn more
Round 10
Winner
Bonafide
Digital dollar wallets for the rest of the world.
Learn more
Progress so far
Goals
  1. To launch the product with a stablecoin asset on a single blockchain network in 2 weeks
  2. To increase the networks to 5 major networks and increase convertible assets to the 10 most populous crypto assets on each network, given a total of 50 assets in the first 8 weeks
  3. To expand offramp solutions to West African (Ghana), East and Southern African countries (Kenya, Uganda, South Africa)in the first 3 months.
  4. To expand offramp assets to CFA (the West African and Central African CFA franc) in the 14  CFA African countries in 6 months.
  5. To grow the Monthly active users (MAU) to more than 10,000 after the sixth month.
To get there, we  will use our requested budget of  
$50,000
*
  to:
  1. Compliance - As a starter in uncharted territory, we are building a compliant framework at the root of our product  (both onchain and off chain requirements), the CEO will oversee this aspect as part of his areas of specialty. However, to achieve this, some foundational requirement is to get registered and licensed as an EU entity. This approach ensures we are compliant with international regulatory requirements as there are no specific blockchain related requirements in Africa. To achieve this, we will be creating an entity and registering a VASP operational license in a Baltic state.
  2. Partnership - The EU registration and license, coupled with our existing US registration will enable us leverage on existing Stellar Anchor Network that only onboards businesses from specific jurisdictions. We also plan on using this licensed entity to promote our partnership with other African Anchors on the stellar network. Whilst regarded as MSB in US and VASP in EU, these registrations will also enable us to onboard with some of the world leading blockchain analytic companies like TRM Labs and Chainalysis to mitigate on-chain risks. This will also give us an exposure to having constructive discussion around Blockchain regulation in Africa as we wish to be part of the building blocks for this.
  3. Product Development - We will be hosting our service on AWS or Google cloud to ensure optimal uptime. Also we will be needing personnel resources including a Frontend Developer and a Smart Contract Developer.
  4. Sales, marketing and Community Engagement - Based on our goal of expanding to Francophone countries, our social funnels will need individuals to oversee the product marketing and communications department. These individuals will communicate to the community in languages and tones suited for each country and ecosystem. Such individuals will also double as business developers in the markets. We plan on getting 2 individuals to serve the English and French markets.
Overview

Problem, Opportunities & Solution


Background

Before crypto, African countries were embracing mobile money. In 2007, the first mobile money company, M-Pesa, created a tsunami of change in the way people on the continent spent and stored money. The launch of mobile money in Kenya was a runaway success with M-Pesa dominating over 99% of the market share.


This success led to widespread adoption of mobile money. Now, more than 60% of all global mobile money transactions flow through Africa. The continent's population has proven that it is excited to adopt new technology. However, due to Africa’s underdeveloped financial transaction and settlement infrastructure, sending money is difficult, time-consuming and expensive. Crypto, which can be sent almost instantly using a mobile phone, helps overcome these obstacles and offers a way for Africans to send money to their families, participate in e-commerce and grow their business opportunities.


Problem

Whilst crypto has been helping in solving remittance problems, it has also created a new set of problems including centralization.  Different solutions like centralized exchanges, P2P platforms, OTC desks, Hawala-type crypto businesses, have been created to bridge the crypto - fiat gap. All of these solutions still lies in silo, ultimately shrinking the growth of the crypto ecosystem from the DeFi space.


Web3 users (inclusive of NFT traders, Liquidity Providers, freelancers, etc) all have a myriad of problems in making use of their crypto assets in the real world due to lack of proper solution that plugs in directly to the web3 ecosystem.


Current transaction flows to fiat

  1. To convert assets in Phantom wallet on Solana to cash using Binance -  
  2. Move Asset from Phantom to centralized exchange with a gas fee
  3. Convert Solana to a stablecoin paying a fee
  4. Exchange stablecoin to Naira with a fee

 

To convert NFT to Cash

  1. Sell asset on NFT platform to supported crypto asset
  2. Move Asset to a centralized exchange with a gas fee
  3. Exchange asset to a stablecoin with a fee
  4. Exchange stablecoin to Naira with a fee


With these current flows comes Fraudulent P2P users on Exchanges that has caused many web3 users to be blocked off banking and crypto platforms - https://www.bloomberg.com/news/articles/2022-01-30/binance-restricts-nigerian-customer-accounts-on-security-concern?leadSource=uverify wall


Opportunity

According to available data on Dune Analytics, there are more than 300,000 active addresses across 4 chains and according to statista, there are more than 11 million metamask addresses created in 4 African countries.These data substantiates the market opportunity we’ve identified for us to explore and present a solution that solves the above problems.


Solution

A platform that allows users to directly convert crypto asset to fiat, cash and mobile money, based on their location in Africa. We’ve created a platform that users does not need to interact with other individuals or centralized exchanges in converting their crypto assets to cash. We’ve found away to eliminate fraudulent peers and keep the platform compliant with regulatory requirements in the world. We are making use of available blockchain analytics tool to assess wallets before transactions are completed to ensure we do not become a conduit for off-ramping illicit funds.


Competition

As identified in our problem statements, our competitors includes centralized exchanges, OTC trades and P2P platforms. Whilst these businesses have expanded remittances, we are building a true web3 product that fits into the future of finance where credentials will be linked to wallets and decentralized platforms. We  are enabling direct conversion without centralization, mitigating fraud and also building the infrastructure for a Billion African population.

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Links:
Bonafide Financial

Bonafide (UseBonafide) is a blockchain based business that leverages on the technology to make meaningful impacts in different areas of the society. Currently, the company is focused on bridging the gap between DeFi and Traditional Finance by building on ideas that closes these gaps in a compliant way.

Team

Adebayo Tiamiyu  (blimey#1371)

CEO

Crypto Compliance @ Kraken  ($20B crypto exchange), Anti-financial Crimes @ EasyCrypto, Risk and Compliance @ DigitalJewels

Tallinn University of Technology, Estonia (Masters in Digital Transformation)

FUTMinna (BTech in Cyber Security)https://www.linkedin.com/in/adebayogates/`


Oluwaseun Omopekun

CTO

Engineering Lead @ Moneymie, Engineering Lead @ TeamApt

BSc OAU, Electrical Engineering

https://www.linkedin.com/in/omopekun-smart/