Onboarding solution via bank transfer - Rampy

[GENERAL] Name and surname of main applicant

Andreas Osberghaus

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Not Incorporated)

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

6

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

We provide a bridge between the banking system and the crypto market. Once a user has transferred fiat from their bank account, the equivalent amount in ADA is sent to the user's wallet address.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

Yes

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

We require a license as a financial intermediary in Switzerland. Becoming a finance intermediary with a Self-Regulatory Organization (SRO) in Switzerland involves specific guidelines and complying with regulatory requirements set by FINMA (Swiss Financial Market Supervisory Authority). SROs supervise their members' compliance with anti-money laundering (AML) regulations and ensure adherence to professional standards and codes of conduct.

We are looking to become a SRO member of VQF together with NMKR. The SRO has already supported similar products based on Bitcoin and other blockchains. 

NMKR stands as our pivotal strategic and technical partner in expanding the reach of our solution within the Cardano Ecosystem.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs

Ensuring full open-sourcing involves legal complexities that require careful consideration. We aim to maximize open-source aspects but cannot guarantee it due to the intricate legal requirements surrounding permissions, licenses, and intellectual property rights. These legal intricacies might restrict our ability to open-source certain elements despite our intention to embrace open-source principles.

[SOLUTION] Please describe your proposed solution.

How you perceive the problem you are solving

To use Rampy, a user only needs to provide their IBAN and a wallet address. After the first transfer, the wallet address will be assigned to the holder of the bank account. Transactions below 900CHF or 950EUR do not necessitate a Know Your Customer (KYC) process. Upon successful registration, users receive transfer details along with a unique personal reference code. This reference remains valid indefinitely and can be used from any bank account registered in the user's name.

Once fiat currency has been transferred to our specified bank account, various checks—including anti-money laundering measures and personal verification—are conducted. Upon successful confirmation of fund receipt, we promptly proceed to purchase ADA tokens on a centralized exchange. Subsequently, we securely transfer the purchased tokens to the user-provided address without delay. In cases where discrepancies arise during checks, such as mismatched bank account holder details, the amount is refunded. If the transaction exceeds the KYC limit of 900CHF/950EUR, the user is notified via email and requested to complete the KYC process. Failure to comply results in the amount being refunded.

Your reasons for approaching it in the way that you have

Our platform empowers users to buy ADA and Native Tokens easily through bank transfers, eliminating the complexities and barriers associated with centralized exchanges. We offer this service with typical fees around 1%, ensuring that users maintain control of their private keys and don't need to place permanent trust in a third party. This allows purchases to be made conveniently and securely, anytime and anywhere.

Who will your project engage

Our aim is to cater to a wide spectrum of users, spanning from novices to experts.

• Novices: We aim to alleviate their apprehensions about self-custody, a crucial aspect that we're dedicated to guiding users through.
• Current users: Our goal is to provide a streamlined method for Dollar Cost Averaging (DCA) in ADA or their preferred native tokens via automated standing orders, all within the realm of self-custody, eliminating the need for manual steps through a centralized exchange.
• Experienced users: Our intention is to empower them to introduce their families and friends to the crypto world effortlessly, incorporating the concept of self-custody.

Our vision extends beyond user accessibility, as we also seek to offer ecosystem projects a chance to directly market their products through our affiliate program and public interface.

• Projects like Book.io can facilitate direct purchases of books or their tokens through their platform using SEPA, eliminating the necessity for users to pre-purchase ADA from exchanges.
• Wallets like Eternl can seamlessly integrate our services into their interface, simplifying ADA transactions for their users.
• Affiliates will receive a share of the revenue generated, with specific details forthcoming, encompassing various models ranging from 0.1% to 0.5%.

How you will demonstrate or prove your impact

Our daily and monthly volume will be a reliable indicator to visualize our impact.

Explain what is unique about your solution, who will benefit, and why this is important to Cardano.

• Our approach streamlines access to the ecosystem by eliminating the necessity for central exchanges.
• Leveraging the widespread familiarity with bank transfers significantly reduces the entry threshold.
• Conduct transactions of up to 900CHF/950EUR per user daily without requiring KYC.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community.

SEPA credit transfers are a user-friendly and convenient method for the masses. The ability to buy ADA directly into your personal wallet via bank transfer offers an excellent opportunity to attract a whole new customer base. Users do not need to register with a crypto exchange and familiarise themselves with how it works.

We transform a regular standing order into a convenient method for Dollar-Cost Averaging (DCA) investments in ADA. With Instant SEPA, users can make spontaneous purchases around the clock and the process will be completed within a few minutes.

For projects, the integration of our service as a payment method is potentially an interesting way to gain new customers. Customers can pay for any offered service using their bank account at minimal fees, without having to have ADA or a credit card on hand.

We will gather anonymised, publicly accessible statistics on our sales volume. These statistics will help us further tailor the service to meet user needs and offer customers insights into ADA investment trends using our service. Regular publication of these statistics, once the service is available to the public, will provide ongoing insights into the service and its usage patterns.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

All three of us shared the same difficulities at the beginning of our crypto journey. Thanks to our technical background we were able to overcome the usual hurdles and since then we naturally are helping our friends and acquaintances to get started and everyone is facing the same difficulties. We are therefore already emotionally attached to the idea.

With more than 35 years of combined experience in software development for various clients, we bring extensive expertise in both project and product development. One team member was involved in DFX, an already running fiat on/off ramp service for Bitcoin and Ethereum. He therefore brings tremendous expertise to build the service. 

NMKR is our partner to support us with compliance and legal issues and to spread our solution within the community. 

We, Christian M., Christian H. and Andreas are passionate developers and are delighted to have found a valuable partner in NMKR who supports us outside our comfort zone. It’s the trusted entity for many in the community. We are very pleased that they are putting their trust in us to make Cardano available to the masses.

[Project Milestones] What are the key milestones you need to achieve in order to complete your project successfully?

The first milestone is building the fundamental basics.

Fundamentals:

• Architecture
• Crafting the framework and technical infrastructure. This includes selecting the optimal technologies, security protocols, compliance measures, and scalability solutions to ensure a secure and efficient exchange process.
• Services
• Several modules are necessary in the background.
• Bank account watching
• Legal and compliance checks
• exchange operations
• fund transfers
• accounting and more
• Public API
• Documentation / Specification
• The core API serves as the fundamental cornerstone of Rampy.
• In the next step we will become our first customer of our API.

The logical next step is to integrate the foundations that have been built.

Integration:

• dApp
• By building the dApp, we're essentially our first customer. This means we'll make it easy for others to use our services. People can connect with their wallet of choice, which supports a sign message mechanism, to our app and can go through the whole buy process. From signing a message to transferring money to getting paid.
• Mock Services
• To test the process, we provide simulation services for bank transfers, compliance checks and exchange activities. In addition to making a successful purchase, users can also test various error cases.

In the final stage, we want to expand the core to determine their suitability for expansion and sustainability aligned with our vision. This step is crucial in enabling us to advance the product in line with our users' preferences.

Enhancements

• History API
• Expansion of the API to include history of orders
• For taxes, it is essential to offer users a history
• Dashboard
• Integration of the History API in the dApp with a visual dashboard.
• Users can connect with their wallet and signing a message to view or export their personal history.

[RESOURCES] Who is in the project team and what are their roles?

Andreas Osberghaus

• Mobile & Backend developer
• 15+ years of experience in software development
• https://twitter.com/mrgrauel

Christian Henzl

• Fullstack developer
• 10+ years of experience in software development
• https://twitter.com/Krysh90

Christian Maier

• Mobile developer & Linux enthusiast
• 15+ years of experience in software development
• https://mastodon.social/@crism

With our skills, the three of us form a fully-fledged team for the technical implementation of the product.

We know that such an approach cannot be accomplished by developers alone, which is why we are very pleased to have found a well-known and trustworthy partner in the Cardano community in NMKR. In addition to their technical expertise, NMKR will support us with strategic planning and marketing.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.

Given that Rampy has not raised funds from venture capitalists or angel investors, we have carefully budgeted to cover essential costs.

As of November 29th, the price of 1 ADA is $0.38. Our funding request of ADA 100,000 is allocated over the next 5 months and is broken down as follows:

One-Time Costs:

• Development:
• Cost: $34,000 (Approx. 89,500 ADA)
• Purpose: To ensure the security and robustness of our platform, which is critical for the trustworthiness of Rampy.
• Contract Work:
• Cost: $2,500 to $5,000 (Approx. 6,500 to 13,000 ADA)
• Purpose: The MVP should be as close to the final product as possible. To achieve this we need the help of designers and quality assurance.
• Note: We might cover some of the cost.

Monthly Costs:

• Co-Working Space:
• Monthly Cost: 2,000 ADA
• Total for 6 Months: 12,000 ADA
• Purpose: After Covid, it has become important for us to work more closely together.  Remote working is good, but we believe in close collaboration to meet our personal high expectations.
• Note: We cover most of the cost.
• Cloud and Server Infrastructure:
• Monthly Cost: Unknown
• Total for 6 Months: Unknown
• Purpose: It's required to operate our platform.
• Note: We cover the cost.

Total Budget Request:

• For a period of 6 months: 100,000 ADA

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

Rampy's budget is carefully planned to ensure maximum value for the Cardano ecosystem. The costs are aligned with industry standards and are essential for delivering a high-quality, secure, and user-friendly onboarding solution for Cardano. Here’s how the project represents value for money:

Alignment with Industry Standards:

• Development: The cost for development is significant below industry rates of $120 to $180 per hour. Given the complexity and potential risks associated with combining traditional banking with crypto, this is a necessary investment to build a robust and secure service protect users and uphold the good user experience of the Cardano ecosystem.

Return on Investment for the Cardano Ecosystem:

• Enhancing Accessibility: By simplifying the onboarding on Cardano, Rampy will attract more users to the ecosystem, expanding the user base and increasing the overall value of the network.
• Innovation: The development of Rampy involves innovative approaches to Onboarding solutions, contributing to the overall technological advancement within the Cardano ecosystem. The emphasis on security also builds trust and reliability, critical for long-term growth.

Cost-Effectiveness and Efficiency:

• Efficient Budget: Each element of the budget is carefully allocated to ensure that we are maximising resources for development and security.

In summary, the budget for Rampy has been carefully crafted to deliver value, ensuring that every ADA spent contributes significantly to the development, security, and growth of the Cardano ecosystem. The project not only aligns with industry standards in terms of costs but also promises substantial returns in terms of technological advancement and user growth.

After a successful MVP, the plan is to found a company in Switzerland together with NMKR in order to publish Rampy on Mainnet.

[IMPORTANT NOTE] The Applicant agrees to Fund Rules and also that data in the submission form and other data provided by the project team during the course of the project will be publicly available.

I Accept