THE EASIEST WAY TO SEND AND RECEIVE CRYPTO (AND FIAT!)

[GENERAL] Name and surname of main applicant

Martin Caride

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

Entity (Incorporated)

[GENERAL] Co-proposers and additional applicants

Pedro Cadena

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

3

[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)

Frens Protocol will simplify Cardano transfers by enabling crypto and fiat exchanges via links, removing the need for complex wallet setups.

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

No

[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.”

No dependencies

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

Yes

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

The protocol will be open source in the Q4 of 2024.

[SOLUTION] Please describe your proposed solution

1.Problem Identification:

The idea for Frens Protocol came from a chat with Javier Saavedra, who was then at Google Canada and is now advising us. He was excited about NFTs and their potential, but worried about how tricky they were to use. He challenged us to make it easier.

We started by helping brands use NFTs more smoothly, but soon saw a bigger chance to change how money is transferred around the world. That’s how Frens Protocol started — we wanted to make sending value as simple as possible.

2.Solution Approach:

We have a working product across multiple blockchains. We will use this money to create a native integration via Milkomeda so users of the Cardano protocol can:

1. Send and receive ADA and Cardano native assets using Frens links without exchanging wallet addresses or personal info; claim crypto without needing a wallet. Enjoy gasless transfers for a smooth experience.
2. Direct Cash-Out Links: Instantly withdraw cash through a simple link—no wallet or bank account needed. Just present the link at any partnered ATM or outlet and claim your funds immediately.
3. Make the functionality available to Cardano projects through our business development advisors
4. Permit cross chain swaps seamlessly
5. Enhanced Security: Funds are always safe, even if servers are compromised. 
6. Innovative Wallet Solutions: User-friendly smart wallets provide a welcoming gateway for newcomers.
7. Allow white label integration of the functionality.

3.Engagement and Impact:

Our concept is validated by strong demand: Morabanc, Andorra's largest bank, has recognized the potential of Frens Protocol for powering remittance solutions and is keen to integrate our technology. This endorsement from a prominent financial institution underscores the urgent need for our services and the significant impact Frens Protocol can have. They see us as a key to solving pressing customer issues.

In the crypto space, our partners see Frens Protocol as an essential tool to onboard new users and facilitate easy, frictionless token transfers, dubbing us the “Mailchimp of Web3.”

Our analysis reveals considerable challenges for our users, particularly those without bank accounts, including high entry barriers, frequent communication errors, non-intuitive interfaces, and the overall complexity of cryptocurrency for beginners.

There is especially strong demand from underbanked regions in Africa, where people are accustomed to transferring mobile phone minutes as a form of value—a practice that shows readiness for digital currency adoption. Frens Protocol leverages this texting culture, allowing users to send and receive digital and fiat currencies simply by texting, without the need for a bank account. This capability aligns perfectly with the needs of users in these regions, offering a practical and familiar way to manage funds. Our approach has resonated strongly with partners like Morabanc, who view Frens Protocol as a practical solution to real-world banking challenges faced by their customers.

4.Uniqueness and Benefits to Cardano:

Frens Protocol can integrate seamlessly into the Cardano ecosystem through Milkomeda, enhancing how users and dApps within this ecosystem can interact. By enabling users to send and receive tokens via simple links—even without needing a traditional wallet—Frens Protocol is paving the way for broader market adoption.

This innovative approach not only boosts Cardano's visibility but also expands its adoption among diverse user bases and key institutional players like MoraBanc and Criptan, a crypto exchange in Spain backed by Bank Santander. We're also in talks with other potential partners who are excited about what this technology can bring to their operations.

Moreover, by integrating with Cardano we will naturally be in a position to seamlessly bring consumer brands into the Cardano ecosystem. 

Partership with FC Barcelona: 

In April 2024, we launched a proof of concept (PoC) in collaboration with the FC Barcelona, one of the largest sports franchises globally. 

• Use Case: At the MoCo Museum, FC Barcelona unveils its first two NFTs: “Empowerment”, dedicated to Alexia Putellas, and “In a Way, Inmortal”, honoring Johan Cruyff. The “Masterpiece” collection celebrates the iconic moments and figures from Barça’s history. FC Barcelona executives, players and artists convene to unveil the collection. All attendees were able to download their POAP by scanning a QR Code and claim the NFT using their Gmail account through Frens technology.

• Technology Behind: Our QR Code technology is a key differentiator for Frens Protocol. For the FC Barcelona event, we employed a customized QR Code that supported up to 300 claims. However, to ensure fairness and prevent abuse, we implemented IP restrictions, limiting each device to a single claim. This QR Code/Link is specially tailored compared to standard Frens links, which are typically more versatile and can be claimed using various authentication methods such as crypto wallets, Google accounts, or phone numbers. This customized approach is groundbreaking for conducting airdrops, a common strategy for promotional events, summits, and partnerships within the Cardano Foundation. It allows for controlled, secure, and efficient distribution of digital assets or tokens to a large audience while maintaining strict access controls. By leveraging this technology, we can significantly enhance the user experience during such events, making it straightforward and secure for participants to claim their digital assets. This innovation not only streamlines the distribution process but also aligns with the Cardano Foundation's goals of broadening participation and engagement in the ecosystem.

• Feedback: FC Barcelona was impressed with the UX, which leads us to repeat the same event at the MoCo Museum in Amsterdam and start conversations about a partnership for the opening of their new stadium in 2025. The idea is tha attendees at the games will have the opportunity to claim digital collectibles, similar to NBA Top Shots, after every game.

We’re also working with brands like KFC and the Agencia de Residus de Barcelona, who want to expand their reach by entering into the NFT space. 

Once we integrate with Cardano these brands will be seamlessly connected through to us the the Cardano ecosystem and could unlock new opportunities for other startups thereby enhancing user engagement.

5.Demonstrating Impact:

We will measure our impact primarily focusing on the increase in on-chain activities and transaction volumes on the Cardano network. These indicators will serve as evidence of our contribution to the ecosystem’s growth and adoption. Our initiative will not only highlight the utility and efficiency of Cardano’s technology but also its potential to attract substantial institutional partners (financial institutions, brands …) and user engagement.

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

Value to the Cardano Community:

Frens Protocol is set to significantly enhance the Cardano ecosystem by introducing user-friendly financial solutions that utilize Cardano’s advanced blockchain capabilities. 

By integrating Cardano via Milkomeda and dApps into our technology, we are doing more than just using Cardano as a platform—we are actively promoting its widespread adoption across diverse demographic and geographic areas. Here's how we anticipate benefiting the Cardano community:

• Increase Cardano Usage: By facilitating transactions through simple links, and introducing user-friendly features like gasless claiming or claiming tokens and NFTs without a wallet, we expect to see a significant rise in the Cardano network transactions.

• Foster Broader Adoption: Our initiative to simplify the blockchain experience aims to make Cardano accessible to a broader, non-technical audience, potentially increasing the ecosystem’s active users and wallet creations.

• Strengthen Institutional Engagement: Partnering with large institutions and consumer brands and creating structured products that leverage the Cardano ecosystem, Frens Protocol aims to draw institutional interest and investments, boosting Cardano's credibility and use in the financial and consumer sector.

Measuring Impact:

• Transaction Volume: We will track the volume of transactions processed on the Cardano blockchain via Frens Protocol, aiming for a measurable increase each month.

• Integrations: We'll monitor the number of protocols and dApps integrating Frens technology, reflecting the ecosystem’s growth and our solution’s utility.

• User Adoption Rates: By observing the growth in new users and wallet creations on the Cardano network due to our protocol, we can gauge our reach and effectiveness in attracting new users.

• Institutional/Brand Partnerships: We'll assess the number and significance of institutional/brand partnerships formed as a result of our integration.

• User Feedback and Satisfaction: Regular collection of user feedback will help us assess satisfaction with the features integrated with Cardano and identify areas for improvement.

Sharing Outputs:

• Partnerships and Collaborations: We intend to forge strong partnerships with other projects and businesses within the Cardano ecosystem. These collaborations will not only create synergies but also ensure that our solutions add substantial value to the community. Through these partnerships, we'll also facilitate cross-promotion of our initiatives, extending benefits to a wider array of stakeholders within the community.

[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?

The product is already live and we have facilitated thousands of transactions already with our partners.

Our edge comes from the rich backgrounds our team brings from their time at Nuclio. Pedro has a strong track record in guiding diverse startups, particularly in the crypto sector, on product development. His expertise is complemented by Martin’s experience in developing successful B2B2C business models, like his work at Glovo which was sold for $2.6 billion to Delivery Hero.

At Nuclio, Martin learned firsthand the power of tapping into partner ecosystems to reach broad user bases—a key strategy we've successfully implemented at Frens Protocol. Pedro's knack for creating scalable, market-ready products aligns perfectly with our goals.

Our team's ability to secure significant partnerships, like our collaboration with Morabanc, sets us apart. These partnerships not only prove our business model works but also open doors to further opportunities with major financial institutions, enhancing our position in the market.

The Frens team is adept at managing project funds, led by Martin, a Chartered Financial Analyst (CFA). With his deep expertise in financial management, strategy, and compliance, he ensures meticulous fund allocation and reporting. The team's experience spans fintech, blockchain, and decentralized systems, enabling them to uphold the highest standards of accountability and trust while delivering efficient, impactful solutions for the Cardano ecosystem.

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

Milestone 1: Milkomeda Integration and Initial Functionality

• Objective: Ensure that Frens Protocol integrates with the Cardano blockchain via Milkomeda, establishing essential operational capabilities and compatibility.

Outputs:

• Successful integration of Frens Protocol with the Cardano blockchain through Milkomeda.
• Execution of initial test transactions using mADA on the Milkomeda testnet.

Acceptance Criteria:

• Integration success confirmed and initial feedback from users.
• Testnet transactions and reports from initial testing.

Milestone 2: Development of Cross-chain and Advanced Transaction Features

• Objective: Create and launch advanced transaction features, such as cross-chain claims to enhance mADA's usability.

Outputs:

• Functional cross-chain transaction capabilities between Ethereum and Cardano using mADA.

Acceptance Criteria:

• Successful demonstration and validation of cross-chain transactions involving mADA. At least 500 cross-chain transactions involving mADA.

Milestone 3: Business Development and Community Engagement

• Objective: Expand Frens Protocol's influence within the Cardano ecosystem by hiring former experienced Business Development Managers at the Cardano Foundation to actively engage with existing and potential protocols on Cardano. This milestone aims to foster stronger community ties, promote new features, and enhance the integration of diverse applications.

Outputs:

1. Hiring of two former Partnerships Business Development Managers at the Cardano Foundation.
2. Successful initiation of partnerships with a minimum of five dApps in the Cardano ecosystem to use Frens Protocol for transaction facilitation.

Acceptance Criteria:

1. At least 3 new partnerships, including scopes of collaboration and expected outcomes.

Final Milestone: Evaluation and Reporting

• Objective: Conduct evaluation of the project's impact on the Cardano ecosystem through Milkomeda.

Outputs:

• Report including metrics such as links created, protocol integrations in the Cardano Ecosystem, user adoption rates, and institutional engagement.
• Video that highlights achievements and benefits to the Cardano community.

Acceptance Criteria:

• Impact assessment report.

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

Pedro Cadena - Product

Martín Caride - Business Development and Operations.

Kyo Nguyen - Product

Manu Canales - Product

Ernest Sánchez - Investor and Strategy

Sacha Windisch - Business Development Ex Partnerships @ Cardano Foundation TBC

Rizwan Pabani - Business Development Ex Partnerships @ Cardano Foundation TBC

Advisors:

Carlos Salinas - Head of Digital Assets MoraBanc

Jorge Soriano - CEO & Co-founder Criptan

Javier F. Saavedra - Former Head of Industry at Google

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

Development, Technical Integration and Business Development

1.Cardano Blockchain Integration via Milkomeda

• Technical Adaptation and Testing: Costs for adapting the Frens Protocol to be compatible with the Cardano blockchain via Milkomeda, including developer salaries and technical resources.
• Milkomeda Access Fees: Fees associated with using the Milkomeda bridge for integration and testing.
• Costs to ensure that smart contracts are secure and function correctly within the Cardano ecosystem on Milkomeda.

• Subtotal: 30,000 ADA

2. Cross-chain Functionality Enhancements

• Development Costs: Development of features to enable transactions like sending ETH and claiming mADA.

• Subtotal: 20,000 ADA

3.Smart Contract Deployment and Testing

• Smart Contract Development: Salaries for developers specifically working on the smart contracts.
• Security Audits: Fees for third-party services to conduct comprehensive security audits of the smart contracts.

• Subtotal: 20,000 ADA

4.Community Engagement, Business Development, and Project Administration

• Salaries for Business Development Managers: Costs for hiring former experienced business development managers from the Cardano Foundation to actively engage with existing and potential protocols on Cardano, fostering stronger community ties and promoting the new features.
• Project Management Costs: Salaries for project managers overseeing the project timelines and deliverables.

• Subtotal: 30,000 ADA

• Total Estimated Cost: 100,000 ADA

Additional Financial Considerations

• Marketing and Promotion: Budget for marketing activities, including content creation, and PR efforts to boost project visibility and adoption.

Funding and Management

• Funding Sources: Primary funding will come from the Cardano grant. Any additional needs will be met through existing Frens Protocol resources.

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

1.Integration and Technical Adaptation (30,000 ADA)

• Cost Justification: The cost for integrating Frens Protocol with Milkomeda involves adapting existing technologies to new blockchain frameworks. The budget covers developer salaries and technical resources. The rates for these specialized services align with industry standards for top-tier blockchain developers.

• Ecosystem Value: This integration extends the functionality of ADA by enabling seamless transactions with other blockchains, potentially increasing the transaction volume and demand for ADA within and beyond the Cardano ecosystem.

2. Cross-chain Functionality Enhancements (20,000 ADA)

• Cost Justification: The development costs for cross-chain functionalities are aligned with rates for blockchain developers skilled in creating interoperable blockchain solutions. This rate is benchmarked against industry standards, where the complexity of cross-chain integration justifies the premium for specialized skills.

• Ecosystem Value: Enhancing cross-chain capabilities broadens the usability of ADA, attracting a wider user base from other blockchain communities and fostering a more integrated and versatile blockchain environment.

3. Smart Contract Deployment and Testing (20,000 ADA)

• Cost Justification: The budget allocation for smart contract development and security audits is based on the prevailing market rates for these specialized services.

• Ecosystem Value: Ensuring the security and functionality of smart contracts on Cardano through rigorous testing and audits enhances the trustworthiness and reliability of the Cardano network, critical for its adoption in sensitive and high-value transactions.

4. Community Engagement, Business Development, and Project Administration (30,000 ADA)

• Cost Justification: The salaries for business development managers are benchmarked against average wages for similar roles in the tech industry. These positions are crucial for ensuring project success and require competitive compensation to attract dApps in the Cardano Ecosystem, Institutions, brands and more users into Cardano.

• Ecosystem Value: By fostering community engagement and developing business relationships, this investment promotes the adoption and practical use of Cardano, driving growth and enhancing the network effect within the Cardano ecosystem.

Funding and Management

• Funding Sources: Primary funding from the Cardano grant is supplemented by Frens Protocol's resources, leveraging the grant efficiently while ensuring the project’s broad impact. This dual-source funding approach maximizes resource utilization and enhances the project’s potential reach and success.