VESPR Keyless: Self-Custody Without Seed Phrases

[Proposal setup] Proposal title

Please provide your proposal title

VESPR Keyless: Self-Custody Without Seed Phrases

[Proposal Summary] Budget Information

Enter the amount of funding you are requesting in ADA

250000

[Proposal Summary] Time

Please specify how many months you expect your project to last

6

[Proposal Summary] Translation Information

Please indicate if your proposal has been auto-translated

No

Original Language

en

[Proposal Summary] Problem Statement

What is the problem you want to solve?

20% of crypto is permanently lost due to seed phrases. Despite VESPR's seamless onboarding, users still face confusion, fund loss risk, and cross-device friction, blocking Web2 adoption.

[Proposal Summary] Supporting Documentation

Supporting links

• https://vespr.xyz/
,
• https://x.com/vesprwallet
,
• https://github.com/vespr-wallet

[Proposal Summary] Project Dependencies

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

No

Describe any dependencies or write 'No dependencies'

No dependencies

[Proposal Summary] Project Open Source

Will your project's outputs be fully open source?

No

License and Additional Information

N/A

[Theme Selection] Theme

Please choose the most relevant theme and tag related to the outcomes of your proposal

Authentication

[Campaign Category] Category Questions

Describe your established collaborations.

• Technical Partners: Exploring partnerships with cryptographic infrastructure providers for self-custody social authentication. Already investigating possible partnership with ZkFold and Mesh teams.
• Intersect: Active participation in wallet standards working groups
• DApp Partners (DexHunter, Sundial, FluidTokens): Will benefit from VESPR bringing new users through streamlined onboarding

Describe funding commitments.

Reserved for Technical Partners: 80,000 ADA

• Integration support and custom features from selected social login provider

• Technical resources for cryptographic implementation

• Custom-built features (e.g., additional social login platforms per our requirements)

Remaining Funds: 170,000 ADA for VESPR development team, infrastructure, and documentation

Describe your key performance metrics.

Current Baseline: 30,000 MAU, $400M+ secured, 99.95% uptime, 60% idle ADA

Target Metrics:

• Development: under 5 seconds cryptographic operation to issue/restore wallet
• Launch: at least 1,000 users within the first month relying on Social Login

[Your Project and Solution] Solution

Please describe your proposed solution and how it addresses the problem

20% of crypto is permanently lost due to seed phrases ($140B+ in Bitcoin alone). This represents the single biggest UX barrier preventing mainstream adoption. Meanwhile, billions of users authenticate daily using passkeys on iPhones, social login on websites, and biometrics on Android - yet Cardano requires memorizing 24 words that terrify new users.

The gap between Web2 expectations and Web3 reality is the primary barrier preventing the next wave of crypto adoption. By bridging this gap, Cardano positions itself as the blockchain of choice for mainstream users. Every major tech company has moved beyond passwords - Apple with FaceID, Google with passkeys, Microsoft with Windows Hello. Cardano needs to meet users where they are, not force them into unfamiliar paradigms.

Approach to the Solution

This project creates Cardano's first passwordless entry point, removing the #1 barrier preventing mainstream adoption. By implementing this in VESPR - Cardano's most accessible wallet with 30K active users - we create a proven onboarding funnel that brings new users directly to Cardano's dApps, stake pools, and DeFi protocols:

1. Self-Custody Social Login: Users sign in with Google, Apple, or Microsoft accounts they already have. Through cryptographic innovation, these providers authenticate identity but never access, see, or control private keys. This brings the convenience of "Login with Google" to blockchain without sacrificing decentralization.
2. Passkey Authentication: Leverage the biometric systems built into every modern device - FaceID, TouchID, Windows Hello, Android fingerprint. Passkeys automatically sync across devices through iCloud Keychain and Google Password Manager, solving the multi-device problem that plagues seed phrases.
3. Progressive Security Model: New users can start with simple social login to explore Cardano. As comfort grows, they can add additional security layers. Traditional seed phrases remain available for those who prefer them.

Who Benefits from Cardano's Investment

Every Cardano Stakeholder Wins:

• DeFi Protocols (MinSwap, SundaeSwap, WingRiders): Tap into the growing market of users ready to explore DeFi but deterred by current wallet complexity. Each new user contributes to liquidity depth and ecosystem vitality.
• Stake Pool Operators: Every new ADA holder is a potential delegator.
• Governance Participation: More accessible onboarding means more ADA holders participating in Catalyst voting and on-chain governance, strengthening decentralization.
• All ADA Holders: Every new user increases demand for ADA, generates transaction fees, and strengthens network effects, directly benefiting token value.

Why Fund This Now:

The race for mainstream blockchain adoption is happening now. By funding passwordless authentication, Cardano can leapfrog competitors still stuck with seed phrases. This is a strategic investment in Cardano's growth that benefits every project and token holder in the ecosystem.

[Your Project and Solution] Impact

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

Value to Cardano Community

This project positions Cardano at the forefront of blockchain accessibility. By solving the authentication challenge that holds back mainstream adoption, we create the foundation for Cardano to become a cornerstone of the global financial system.

Immediate Ecosystem Benefits:

• Gateway to Mainstream Adoption: Familiar authentication positions Cardano to capture the next wave of Web3 users. This brings us closer to Cardano becoming a key player in global financial systems.

• Cardano Wins the Adoption Race: While Ethereum and Solana users struggle with technical complexity, Cardano can become the "accessible blockchain." This narrative attracts developers, institutional partners, and media attention to the entire ecosystem.

• Increased ADA Demand: Every passwordless user needs ADA for transactions, staking, and DeFi. More users = more demand = value for all holders.

• Network Effect Multiplication: Passwordless users can actually onboard friends and family. Each new user becomes an ambassador who can bring others - something much harder with seed phrases.

Measuring Success

Quantitative Metrics:

• New user onboarding rate: Track users entering Cardano via passwordless vs traditional methods

• Time to first transaction: Measure how quickly passwordless users become active

• User retention: Compare retention rates between passwordless and traditional users

• Recovery success rate: 95%+ for passwordless vs. 0% for lost seed phrases

Qualitative Impact:

• User testimonials from those who wouldn't have joined Cardano without familiar authentication

• Reduced support burden from authentication issues

• Media coverage positioning Cardano as the accessibility leader

• Partnership inquiries from Web2 platforms interested in blockchain integration

Long-term Strategic Value

This feature becomes more valuable over time through network effects. Every new passwordless user makes Cardano more attractive to their social connections. Every successful onboarding demonstrates Cardano's accessibility. Every recovery story builds trust.

This is Cardano's moment to lead the next phase of blockchain adoption. By funding passwordless authentication, ADA holders invest in positioning Cardano as the go-to blockchain for the next generation of users entering Web3. The value created flows to the entire ecosystem - every dApp gains users, every pool gains delegators, and every ADA holder benefits from growing network effects.

[Your Project and Solution] Capabilities & 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?

Existing Capabilities and Track Record

VESPR's Proven Infrastructure:

• $400M+ secured assets across 30,000 monthly active users
• $30-40M daily transaction volume with 99.95% uptime over 2+ years
• Near-instant onboarding already achieved (5 seconds) - adding passwordless extends this capability
• Production authentication systems handling thousands of daily logins without issues

Team Expertise:

• Alex Dochioiu (CEO): 15+ years in fintech, architected banking authentication for millions at American Express/Virgin Money, Cardano Product Committee member
• Vlad Stan (Co-Founder): Distributed systems expert, built high-security authentication at Adobe
• Daniil Shumko (Lead Dev): Flutter expert who created Cardano's entire mobile ecosystem
• Track Record: Delivered Fund 11 Ledger SDK on time/budget, published 5 MIT-licensed SDKs, co-authored CIP-0099

Validation and Feasibility

Technical Feasibility:

• WebAuthn/FIDO2 standards are mature and widely supported
• OAuth2.0 protocols are well-established industry standards
• Cryptographic techniques for self-custody are proven (multiple approaches available)
• All core technologies have been successfully implemented in other contexts

Market Validation:

• 70% of users prefer mobile for financial activities
• Billions use social login and biometrics daily
• Major tech companies (Apple, Google, Microsoft) have all moved to passwordless
• VESPR's success proves users adopt better authentication when available

Trust and Accountability

Financial Management:

• Milestone-based fund release upon verified delivery
• 80,000 ADA reserved for technical partners (transparent allocation)
• Monthly progress reports to community
• All deliverables publicly verifiable

Quality Assurance:

• External security audit included
• Code will get unit tested
• Public beta testing before production release

Long-term Commitment:

• VESPR's profitable business model ensures continued support
• Feature becomes part of core VESPR infrastructure
• Ongoing maintenance funded by VESPR operations

Why VESPR is Uniquely Qualified

1. Scale for Immediate Impact: 30,000 active users provide instant adoption and real-world testing
2. Authentication Expertise: Team has decades of combined experience in banking-grade authentication
3. Cardano Leadership: Product Committee membership, CIP contributions, ecosystem partnerships
4. Proven Execution: 100% Catalyst delivery rate, multiple successful SDKs available and open-sourced
5. Financial Sustainability: Only self-sustaining Cardano wallet ensures long-term feature support

This isn't experimental technology - it's proven authentication patterns applied to blockchain with careful attention to maintaining self-custody. The risk is minimal, the impact is significant, and VESPR has the track record to deliver.

[Milestones] Project Milestones

Milestone Title

Market Research and Architecture

Milestone Outputs

We will evaluate passwordless authentication providers and approaches, analyzing Cardano-native projects (ZkFold, Mesh) as well as external innovators like Magic.link, Web3Auth, and Privy for Cardano compatibility. Research report will detail technical approaches, and implementation implications for self-custody social login. Partner selection will result in a signed MOU with chosen technical provider for integration support.

Acceptance Criteria

Research report comparing at least 2 approaches with pros/cons and technical implications. Signed MOU or letter of intent with selected technical partner outlining collaboration terms. Basic architecture diagram showing proposed implementation approach.

Evidence of Completion

• Research report with approach comparison and recommendations
• Signed MOU/LOI with technical partner

Delivery Month

1

Cost

60000

Progress

20 %

Milestone Title

Passkey Authentication Implementation

Milestone Outputs

We will implement passkey authentication for iOS and Android using platform biometric APIs (FaceID, TouchID, fingerprint). WebAuthn/FIDO2 standard implementation for secure credential management. Alpha version integrated into VESPR with passkey-based wallet creation and access.

Acceptance Criteria

Passkey creation and authentication functional on iOS/Android devices. Biometric authentication working smoothly with platform prompts. Wallet creation and access via passkeys completed in under 10 seconds.

Evidence of Completion

• Video demonstrating passkey creation and biometric authentication

• Video showing fast wallet setup using passkeys

• Screenshots of passkey working on iOS and Android

Delivery Month

3

Cost

60000

Progress

40 %

Milestone Title

Social Login Implementation

Milestone Outputs

We will implement self-custody social login with platforms such as Google, Apple, and Microsoft. Cryptographic approach ensuring providers authenticate users but never access private keys. Integration with existing passkey system for unified authentication experience.

Acceptance Criteria

Social login working with at least 2 providers (Google/Apple priority). Private keys generated locally and never exposed to OAuth providers. Seamless alternative to passkey authentication from Milestone 2.

Evidence of Completion

• Video demonstrating social login with Google and Apple

• Demo showing wallet creation via social login

Delivery Month

4

Cost

60000

Progress

60 %

Milestone Title

Security Audit and Beta Launch

Milestone Outputs

We will conduct comprehensive security audit of the passwordless integrations with independent firm. Fix all critical and high-severity findings from audit. Deploy to beta for VESPR users to start testing this feature.

Acceptance Criteria

We will complete an independent security audit of the passwordless authentication system (passkeys + social login), resolve all critical issues, and release a closed beta to some of the VESPR users. This beta will validate usability, recovery flows, and stability under real conditions while generating metrics on authentication success and reliability.

Evidence of Completion

• Security audit report with resolution summary

• Confirmation of closed beta release to test group

Delivery Month

5

Cost

60000

Progress

80 %

Milestone Title

Production Launch & Catalyst Close-out

Milestone Outputs

We will launch the passwordless authentication system (passkeys + social login) into production for VESPR users and complete all Catalyst close-out requirements, including final reporting and video submission.

Acceptance Criteria

The passwordless authentication feature is fully deployed in production across iOS and Android, with public announcement. Catalyst close-out requirements are met, including submission of the final report and publication of the close-out video, ensuring transparent delivery of all commitments.

Evidence of Completion

• Links to App Store and Play Store production releases

• Release notes confirming production deployment

• Catalyst final report

• Catalyst close-out video

Delivery Month

6

Cost

10000

Progress

100 %

[Final Pitch] Budget & Costs

Please provide a cost breakdown of the proposed work and resources

Development Team (6 months)

• Senior SDK Developer: 80 days @ 560 ADA/day = 44,800 ADA
• Flutter Developer: 60 days @ 560 ADA/day = 33,600 ADA
• Technical Architect: 30 days @ 700 ADA/day = 21,000 ADA
• QA Engineer: 20 days @ 420 ADA/day = 8,400 ADA
• Infrastructure & Operations: 15,200 ADA
• Security Audit: 40,000 ADA

Technical Partner(s)

• Integration Support, Cryptographic Implementation, Custom Features: 80,000 ADA (reserved)

Project Management

• Project Manager: 20 days @ 350 ADA/day = 7,000 ADA

[Final Pitch] Value for Money

How does the cost of the project represent value for the Cardano ecosystem?

Cost Efficiency

• Daily rates for senior developers and architects are set at 560–700 ADA/day, which is below industry benchmarks**
• The total project budget is 250,000 ADA, with 32% reserved for external technical partners. This ensures ecosystem funds are spent transparently on both in-house delivery and partner integrations.

Strategic Impact

• Problem Size: 20% of crypto is lost due to seed phrases (~$140B in Bitcoin).
• Solution Leverage: Passwordless onboarding eliminates the #1 adoption barrier, enabling more ADA holders, delegators, and Catalyst voters.
• Network Effect: Each user onboarded via passkeys or social login brings exponential reach through easier referrals, something impossible with seed phrases.

Comparative Benchmarks

• Auth0 was acquired for $6.5B, and Magic.link raised $82M to solve similar problems.
• This project delivers comparable functionality for <0.5% of those costs, while being tailored to Cardano and fully integrated into VESPR Wallet.

[Required Acknowledgements] Consent & Confirmation

Terms and Conditions:

Yes