The R Roundup.sol

Stablecoin L1/L2’s are becoming a thing. @KAST_official will build one too eventually. But here is my playbook/reasons (hint, not just for the sake of building one)… 1/ Scalability To be clear, it’s not for this reason - no one needs another chain, so many are out there already with awesome TPS. 2/ Stablecoins are dumb Transfers are too simple. Yes they’re fast and cheap, but in the real world there are a hundreds of different use cases for payments, which stablecoin transfers can’t serve. An introductory list includes… - PreAuth - Declines - Credit - Escrow or payment plans - Instant finality - Consumer Incentives - Consumer and Merchant acquisition incentives - For some, permissions - Balance checks Etc etc. 3/ Stables vs Fast Local rails Stablecoins maybe at escape velocity, and stablecoins in 10-15 countries for payments maybe at strong + scaled PMF. But unless you solve these problems, most of the world will have a better parallel solution, especially locally. Eg. Very few in the US will use stablecoins over FedNow. Or in Brazil, PIX > Stables Thus people will keep off-ramping. Make stables smart, and people may stay on-chain longer. 4/ Cold start problem The problem with building a chain, is no one needs a new chain, and if you go in market to incentivise it, you’re competing with everyone else. Thus = A/ Build a stablecoin bank B/ Gather a scale of deposits and customer base C/ Get huge consumer volumes D/ First tokenise the deposits into a stable, backed by something awesome like USYC E/ Make the stable available to anyone to send from the app to anyone else (like Venmo or CashApp), and the receiver can pickup a simpler KAST app (under the hood non-custodial). So velocity of users grows, and outside just users for a KAST card. F/ Make this app smarter, and then let the interactions between people programmable so the payments can have smarts similar to a Visa/MC - this is where L2 kicks in. Smarts are built into this chain, which is just initially used by KAST users, invisibly under the KAST app. G/ Open up the chain and the programmability, so any wallet or general app developer can build on top of it. H/ Get other stables to join the chain, as they know it’s the chain where smart consumer payments happen. When F&G happen, we need to have 1M+ monthly active users and $100-300M ready to move move from custodial, on-chain. Thus immediate traction, is by just converting the KAST user base. But the scale will from when our user base send money externally. The CashApp playbook. The chain is also a playbook as old as time, with BNB, Mantle etc. Just the consumer payments + stablecoin version. —- FYI: If we can avoid building another chain we will, but want to see these smarts on-chain. Some problems like instant finality are hard to solve. Thus we will probably have to build it, ideally L2 on a current awesome chain. Along the way we will also build other cool stuff, like stablecoin wallets, stablecoins swaps and maybe even P2P on-chain. @KAST_official isn’t just a card, we are the consumer stablecoin company.