Ethereum Foundation DevCon 6 - Layer 2s Track, 13 Oct 2022

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From YouTube: The State of Fiat On-Ramps for Layer 2s by Thijs Maas | Devcon Bogotá

Description

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https://archive.devcon.org/archive/watch/6/the-state-of-fiat-on-ramps-for-layer-2s/

In this talk, Thijs Maas, the CEO of Onramper, shall share unique insights into the fiat on-ramp market for layer 2s, using data on fiat on-ramps. We shall demonstrate the gaps in current layer 2 on-ramp coverage.

Speaker(s): Thijs Maas
Track: Layer 2s
Keywords: fiat on-ramps,fiat gateways,research

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Devcon is the Ethereum conference for developers, researchers, thinkers, and makers.
Devcon 6 was held in Bogotá, Colombia on Oct 11 - 14, 2022.
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I'm, the founder and CEO of unramper- and you can imagine my interest now- let's go through some Basics. What is on-ramp so an on-ramper is not a party like coinbase coinbase is broker as a wallet as an exchange. We will Define fiat on-ramp here as a third party that offers a API or widget for.

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One they're not sure.

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So that's parties like the.

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Ones 12, as.

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Big as in space, uh moonpay, probably being market leader, and each of these on-ramps is good in different things. Right um You might recognize some names examples. Great southeast, Asia transact this local payment methods as well. Moon Bay, tries really well and does really well and quite a lot and credit cards us now. The question is: how do you judge Fiat on-ramps, so there's three main components here: number one is fees quite obvious: quite intuitive won't die of too much into now.

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The second one reach reaches how many countries there's a Fiat on-ramp sport, how many Fiat currencies, how many cryptocurrencies, how many payment methods and the third one which is sadly overlooked. A lot is success rate a lot of Fiat on-rem transactions actually fail. So you need to have the right Fiat on-ramp. That will actually make a transaction work in the right region. Now I'm from onewember, we are a Fiat on-ramp aggregator. That means that we work with these parties. We aggregate them all.

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We put them all in a single API in a single widget, and then we offer that to the apps wallets exchanges. Etc, you see the interface there. This is the widget now in that users can select amount of crypto they're, buying fiat currency, cryptocurrency payment method, and we figure out who is actually cheapest right here you see it's transact, but you can see that the fees actually can differ quite a lot right when it comes to reach or actually, if I go back a slide. So this is choosing the on-ramp based on fees.

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That I just said. Success rates is also important. Drugs.

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If you can read it, how many on-ramps actually support assets on that layer? Two so right now, the one with the most support is polygon, which arguably there too or not, um and after that orbitrim, who we just heard from as well as then optimism, CK, sync and some of the other ones, notably some of these layer. Twos, don't even have Fiat owner yet right so for users, the only way to actually get there is buy, crypto somewhere else and then Bridge, which we discussed is not a great way to do it.

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So some conclusions, and probably the most popular layer 2 for on-ramps. This is a multiple metrics that we track. Obviously, as aggregator, we get a lot of data in across all of these on-ramps across all of the people that integrate on ramper, so they're, most popular in transaction volumes, number of on-ramps and supported assets, because one thing is a on-ramp actually supporting buying of has its own layer 2. But then second question is which assets how many assets and you see even with the biggest ones. We see a very low range of assets being supported.

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So it's really early days now, it's miles better still than a year ago, but we're not there. So what then, and what is on-ramper's role within it. Now we care about improving this, because simple reason for that is. This is usually the first thing a retail user has to do right and often, sadly, these transactions fail. Often these tokens are not supported, so in any way we can help out.

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We want to help out so when it's about the support of tokens, there's multiple ways that we actually do help out layer, twos and projects built on top of layer twos one is obviously we have the relationships with all of these different field on-ramps, so we can help in improving the support for their two base assets, whether that's you know the more regular ones if you're going to use DC, Etc or more specific assets.

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However, that is per project right. That's not very quick in that sense, not very scalable, because it requires our human effort to work with you together, of course, we're willing to do that, but we've also built a better way. Now. This better way is essentially taking this concept of hey. You still have to buy cryptocurrency with Fiat, first with credit cards or local payment methods, and then you still have to bridge it.

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But what if we make this into a single flow and sure if we can buy crypto, let's say ethereum on a main layer and then Bridge it over to layer? Two, then still, we only have one asset. So what if you can then instantly also in the same flow, merge the swap on the decks? So that's what we've built! That is what it looks like I see that my time is up. You can wrap up in 30 seconds right.

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So that's what it looks like it's a flow that allows the user to go from Fiat to any acid on layer 2. If we want to make that work, even through a bridge and a um the X transaction now the bridge is hidden on the back end, here's an overview of the bridges and exchanges Nexus that we already support. Now we haven't been able to aggregate all of this ourselves. This is made possible by the beautiful and great people at Levi um and yeah.

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If there's anything that we can help you out as layer 2 as project only layer 2 as Dex on layer 2 to make buying any asset possible with cryptocurrency, then yeah reach out at thisamper.com or Twitter or Telegram Applause.