Monetization Plan

Business Model (Need to be verified)

Every time when users ZapIn, ZapOut, and Rebalance, they have to pay 0.3% for transaction fee. Expect that an users zapped in at January and will stay for 1 year, bi-monthly rebalance, they will experience 6 transaction = 2.1% fee.
- Zap-in (Jan) +0.3%
- Rebalance (Mar, May, July, Sep, Nov) +0.3%
- Zap-Out (end of Dec) + 0.3%
Considering users are less sensitive to transaction fee and realistic APY , as long as we still provide quite positive APY, this should work. We should even have potential to increase for example the Zap-out fee to higher ratio, since when users earning money, they tend to be less sensitive to service charge.

Key Hypothesis

Users are willing to rebalance bi-monthly This is actually challenging considering people actually don't care about the earning that much.
Users are less sensitive to service charge or APY, they are more about stability wealth growth So that we can actually charge more as long as we can really create a stable return.

Growth Simulation

If we have maintained a 1M TVL through the whole year, then we can gain 1M * 2% = 20K for revenue.
Unit Economic: If one CORE user would put $3000 on average, we can earn $60 on such core user, which means if our user acquisition cost is less than $60 we can break even at the first year.
We need about 333 such more users to fulfill our goal at this stage. Assume user acquisition cost is 60 per user, that means we need 20K for marketing cost. (If 100M TVL, then we need 2M marketing cost)
As a result, such business also evaluate on how CHEAP we can earn these users. We need to reduce the user acquisition cost!!

User Analysis

Money or wealth, beyond its numerical value, often represents a sense of security for most people. At a high level, human behavior is driven by the pursuit of satisfaction—whether it’s the release of dopamine in biology, utility in economics, or the hierarchy of needs in Maslow’s pyramid, all these concepts point to a similar underlying motivation. Therefore, to begin designing a product, we must focus on what truly satisfies the user.
In the context of investments, while some may view it as a path to self-fulfillment, for the majority—especially in conservative investing—it is more about achieving a sense of security. This aligns with what we observe in prospect theory: people are more sensitive to losses than to equivalent gains. Interestingly, users often don’t focus on the actual returns. If you’re skeptical, ask yourself: what was your APY last year? In fact, most people can’t even confidently say whether they had a net gain or a net loss (myself included). This indicates a significant opportunity: if we can effectively deliver a sense of safety and security, users may be willing to pay a premium for it.

Last updated 4 months ago

Business Model (Need to be verified)

Every time when users ZapIn, ZapOut, and Rebalance, they have to pay 0.3% for transaction fee. Expect that an users zapped in at January and will stay for 1 year, bi-monthly rebalance, they will experience 6 transaction = 2.1% fee.

Zap-in (Jan) +0.3%
Rebalance (Mar, May, July, Sep, Nov) +0.3%
Zap-Out (end of Dec) + 0.3%

Considering users are less sensitive to transaction fee and realistic APY , as long as we still provide quite positive APY, this should work. We should even have potential to increase for example the Zap-out fee to higher ratio, since when users earning money, they tend to be less sensitive to service charge.

Key Hypothesis

Users are willing to rebalance bi-monthly This is actually challenging considering people actually don't care about the earning that much.

Users are less sensitive to service charge or APY, they are more about stability wealth growth So that we can actually charge more as long as we can really create a stable return.

Growth Simulation

If we have maintained a 1M TVL through the whole year, then we can gain 1M * 2% = 20K for revenue.

Unit Economic: If one CORE user would put $3000 on average, we can earn $60 on such core user, which means if our user acquisition cost is less than $60 we can break even at the first year.

We need about 333 such more users to fulfill our goal at this stage. Assume user acquisition cost is 60 per user, that means we need 20K for marketing cost. (If 100M TVL, then we need 2M marketing cost)

As a result, such business also evaluate on how CHEAP we can earn these users. We need to reduce the user acquisition cost!!

User Analysis

In the behavioral economic perspective, based on the , people care about loss far more that earning, which means, if we can provide strong risk protection, we can greatly increase satisfaction, even if such protection is costly

Money or wealth, beyond its numerical value, often represents a sense of security for most people. At a high level, human behavior is driven by the pursuit of satisfaction—whether it’s the release of dopamine in biology, utility in economics, or the hierarchy of needs in Maslow’s pyramid, all these concepts point to a similar underlying motivation. Therefore, to begin designing a product, we must focus on what truly satisfies the user.

In the context of investments, while some may view it as a path to self-fulfillment, for the majority—especially in conservative investing—it is more about achieving a sense of security. This aligns with what we observe in prospect theory: people are more sensitive to losses than to equivalent gains. Interestingly, users often don’t focus on the actual returns. If you’re skeptical, ask yourself: what was your APY last year? In fact, most people can’t even confidently say whether they had a net gain or a net loss (myself included). This indicates a significant opportunity: if we can effectively deliver a sense of safety and security, users may be willing to pay a premium for it.