Proposal Due Date: N/A
Proposal Overview
This proposal introduces the ShapeShift Non-Custodial Debit Card tied to the ShapeShift FOX DEX and mobile application, aiming to provide enhanced financial flexibility, user engagement, and real-world utility for FOX, USDC, USDA , and USDF tokens. The ShapeShift Debit Card offers seamless integration with the ShapeShift ecosystem, empowering users to manage, spend, and grow their digital assets conveniently.
Benefits to the ShapeShift Ecosystem
Increased Liquidity and Utility
The debit card enables users to spend digital assets (FOX, USDC, USDA,USDF) instantly wherever Mastercard or VISA is accepted.
Providing attractive APYs (e.g., 9% on USDC ,USDA, and USDF deposits) incentivizes users to deposit assets, bolstering ecosystem liquidity.
Enhanced User Engagement
Crypto-back rewards (1%-3% based on loyalty levels) encourage frequent usage of the debit card and active participation in the ShapeShift ecosystem.
Financial Flexibility
Users can access ATMs, make instant transactions, and manage funds within the ShapeShift mobile app, integrating crypto seamlessly into their daily lives.
Bridge Between Traditional and Crypto Finance
Features such as direct deposit, bill pay, and account numbers bring traditional financial functionality to crypto users, creating a unified experience.
No Barriers to Entry
With no annual fees, the ShapeShift Debit Card is accessible to a wide audience, encouraging adoption.
Differentiation from Existing Solutions
Integrated Ecosystem
The debit card is deeply integrated with the ShapeShift FOX DEX and ShapeShift mobile app, enabling a seamless user experience.
Superior Financial Incentives
Competitive APYs on USDC and USDA deposits (up to 9% with no lockups) and crypto-back rewards provide compelling financial benefits.
Comprehensive Financial Services
Combining instant spending, ATM access, direct deposit, and bill pay creates a versatile financial tool not commonly offered by other crypto debit cards.
Proposed Utilities of the ShapeShift Debit Card
Instant Spending
Instantly spend FOX, USDC, USDA or USDF anywhere Mastercard is accepted.
High APY Rewards
Earn up to 9% APY on USDC, USDA, USDF deposits with no lockup requirements.
Crypto Back Rewards
Earn 1%-3% crypto back rewards on purchases, incentivizing regular use.
Seamless App Integration
Fully integrated with the ShapeShift mobile app for easy management of card balances, transactions, and rewards.
Direct Deposit
Users receive a personal routing and account number for deposits and bill pay.
ATM Access
Convenient cash access through ATMs worldwide.
No Annual Fees
The ShapeShift Debit Card is free to use, removing barriers to entry.
Proposal Goals
Expand Practical Use of Digital Assets
Enable users to spend FOX, USDC, USDA and USDF in real world transactions, increasing utility and adoption.
Enhance Ecosystem Engagement
Encourage frequent interaction through rewards, seamless app integration, and versatile card features.
Increase Liquidity
Attract more deposits by offering competitive APY rates, fostering liquidity for trading and rewards programs.
Bridge Traditional and Crypto Finance
Integrate traditional financial services such as bill pay and direct deposit, creating a unified financial experience.
Promote Long-Term Investment
Reward loyalty and incentivize holding FOX tokens through additional benefits and fee reductions.
Problem the Proposal Solves
Limited Practical Use of Cryptocurrencies
Solution: Enable instant spending of FOX, USDC, USDA, and USDF significantly enhancing the utility of digital assets.
Low User Engagement in Crypto Ecosystems
Solution: Provide rewards for card usage and integrate card management into the ShapeShift app, fostering daily interaction.
Fragmentation Between Traditional and Crypto Finance
Solution: Combine crypto services with traditional financial features, simplifying user financial management.
Lack of Attractive Financial Incentives
Solution: Offer high APYs and crypto back rewards, creating a compelling value proposition for users.
Scope of Work
- Technical Development
Debit Card Issuance and Management
Partner with financial institutions to issue the debit card.
Build APIs to connect the card platform with the ShapeShift app for real-time transaction updates.
Integration with ShapeShift Mobile App
Develop user-friendly interfaces to manage balances, rewards, and transactions seamlessly.
Liquidity Management
Establish and maintain robust USDC, USDA and USDF liquidity pools.
Security and Compliance
Implement two-factor authentication, encryption, and fraud detection to protect user data and funds.
Ensure compliance with KYC/AML regulations( but we are none custodial 
)
- Partnerships and Collaborations
Financial Institutions
Partner with card issuers and payment networks (e.g., Mastercard).
Merchant Adoption
Work with merchants to accept the ShapeShift Debit Card and provide additional rewards for usage.
- User Experience Enhancements
User Interface Design
Ensure intuitive navigation and transaction tracking within the ShapeShift mobile app.
Rewards System Implementation
Develop a system to calculate and distribute crypto-back rewards and APY earnings.
- Marketing and User Acquisition
Awareness Campaigns
Highlight unique benefits through strategic marketing initiatives.
Educational Content
Create tutorials, webinars, and guides to educate users on the card’s features.
Current Roadblocks and Barriers to Success
Regulatory Compliance
Navigating diverse financial regulations across jurisdictions requires a robust legal framework.
Security and Fraud Prevention
Strong fraud detection and data protection systems are essential for building user trust.
Liquidity Management
Adequate liquidity in trading pools is crucial for maintaining transaction efficiency.
User Adoption
Effective onboarding, user education, and marketing strategies are needed to drive widespread adoption.
Evaluation Metrics and Criteria
Technical Implementation
Fully functional APIs, backend systems, and integrated user interfaces.
User Engagement
Increase in active users and card transactions within the ecosystem.
Liquidity Growth
Sustained liquidity in USDC and USDA pools for smooth operations.
Regulatory Compliance
Adherence to all relevant financial regulations.
User Feedback
Positive feedback from beta testing and post-launch surveys.
Submission Requirements
Technical Feasibility
Detailed roadmap for integrating debit card functionality into the ShapeShift ecosystem.
Compliance Framework
Comprehensive plan for meeting regulatory requirements across jurisdictions.
Marketing Strategy
Targeted campaigns to raise awareness and drive adoption.
Security Measures
Documentation of security protocols and measures to protect user data and funds.
Submission Method
Blockchain: Mainnet
Due Date: N/A
Budget
The budget will be determined by the development team based on scope and resource requirements.
By implementing this proposal, ShapeShift will bridge the gap between traditional finance and decentralized ecosystems, offering users a secure, flexible, and rewarding financial tool. The ShapeShift Debit Card enhances real-world utility and user engagement, driving growth and adoption of FOX, USDC, USDA ,and USDF within the ShapeShift ecosystem.