[Grant request]: Suarmi

GRANT REQUEST: Suarmi - Revolutionizing Crypto On/Off Ramp in Mexico

Basic Details

Project name: Suarmi

Point of contact: Jonathan Herrera; jonathan@suarmi.com; Telegram handle: @jonathan_herrera0; Discord handle: Jonathan Herrera #8518

Team background:

The Suarmi team is composed of 3 members, 2 full time developers with professional experience in the blockchain and fintech industry and a full time PM/ business developer. All of us have a deep understanding of the Mexican market and the challenges faced by crypto users in the region, mainly because we build the product to solve a problem we used to have. We have a track record of successfully launching and managing crypto-related projects, our team has won various awards in Hackathons, most notably a P2P fiat to NFT platform. This project was developed during ETH-Colombia last year.

Other sources of funding and approximate amounts: Suarmi has received 30k from Mexican Angel investors, the only other sources of funding have been savings from team members.

Project Details

Describe the problem being solved:

Suarmi aims to address the lack of reliable and user-friendly on/off ramps for cryptocurrencies in Mexico. Before Suarmi, the process of buying, selling, and exchanging cryptocurrencies in Mexico was fragmented and cumbersome. Users often have to navigate through multiple platforms (two or three) before being able to withdraw the token they were looking for to their personal wallets. This process involves high fees, complex steps, potential security risks, and most importantly, it takes up time.

Existing alternatives like peer-to-peer (P2P) trading on Binance can be expensive and unsafe because of counterparty risks. Other options like MoonPay are costly as they only support credit card purchases, which result in significantly higher fees.

One of the key advantages of Suarmi is its direct integration with the SPEI (Sistema de Pagos Electrónicos Interbancarios i.e. local bank transfers) payment system with a finality of less than 5 minutes. This integration allows users to seamlessly transfer funds between their bank accounts and the Suarmi platform, providing a secure and efficient way to buy and sell. In other words, one can describe Suarmi as a noncustodial fiat to crypto exchange.

By offering a streamlined user experience, low fees, and direct integration with the national payment system, Suarmi aims to overcome the challenges faced by Mexican users when dealing with cryptocurrencies. The platform’s focus on convenience, security, and accessibility makes it an ideal solution for both newcomers and experienced crypto enthusiasts in Mexico, also empowering Mexican developers and building the foundations for Mexican DeFi.

Mexican DeFi projects Suarmi is collaborating with (we don’t charge them in any way, they are part of our vision, and we help them to materialize our end goal of a string local web3 ecosystem):

  • LaDAO: Mexican Stablecoin issuers $XOC and Mexican centric DeFi protocol development. [https://ladao.club/]
  • Jarvis Network Mexican division: Stablecoin issuers, in this context they deployed $jMXN [https://jarvis.network/]
  • Bloinx: A “crypto-tanda” savings account that is starting to grow on Polygon and also Celo. (0x is Celo friendly, we would use 0x’s infrastructure to help develop Bloinx on Celo as a successful Dapp) [https://bloinx.io/]
  • Alcancia: A easy-to-use savings account [https://landing.alcancia.io/]
  • Olmec.fi: a Money Market that is in the works that will be tailored for $XOC and $jMXN [no landing page yet]

Explain how the funding will be used:

The grant funds will be mainly utilized to pay salaries for the team that will continue to improve and expand the Suarmi platform. This includes further improving the user interface (UI) to provide a fast and easy-to-use experience, continuing the development of the API, new distribution platforms, etc. The funds will also be allocated towards integrating additional blockchains (currently 18), expanding even more the range of supported cryptocurrencies, and providing seamless cross-chain transactions for users.

Additionally, onboarding events will take place all over the Mexican Republic, with the main goal to increase adoption and teach newcomers how to navigate and understand the Mexican DeFi we are developing and how they can make the most out of it. Since we are the entry point into crypto in Mexico, 0x will benefit from capturing Mexico’s on/off ramp volume.

  • 60k [would be the total amount of requested funds]
    • 50k would go towards 1 year salaries of our 3-man team, we will achieve in that period of time the following:
      • Implementation of 0x’s APIs to Suarmi (we will use 0x exclusively on 0x’s supporting networks)
      • Revamp of Suarmi UI
      • Telegram bot
      • Expansion into other countries
      • Achieve sustainability
    • 10k will go towards 6 onboarding events around the Mexican Republic, the main focus of the onboarding are the following:
      • Intro to DeFi (DEXes, MM, etc.)
      • Onboarding to the tailored and mexican centric protocols as well as mexican stablecoins
      • Intro to NFTs, and web3 beyond DeFi

Events breakdown:

  • There would be a total of 6 onboarding events:
    • 5 of them will be held alongside local communities that already endorse the use of Suarmi. CryptoPuebla on Puebla, ETH Mexico on Ciudad de Mexico, Espacio Cripto, Monterrey and Tijuana.
    • 1 Special side event on the same week as ETH Mexico. Huge note here, ETH-Mexico is separate from ETH-Global. ETH Mexico is organized by Mexican community.

Indicate whether your solution/product will integrate directly with the 0x Protocol contracts or via APIs:

Suarmi operates by maintaining a pool of stablecoins on each blockchain available on our platform (i.e. USDC on polygon, cUSD on Celo, etc.) which serve as the base trading asset. When one of our users wants to purchase a token, let’s say ETH, Suarmi will utilize 0x Protocol via APIs to exchange USDC for ETH and then will send the ETH to the user. The process is reversed when the user wants to sell ETH in exchange for Mexican pesos.

Here’s a step by step breakdown:

User initiates a trade: The user indicates their desired token and the amount they wish to acquire or sell. They then send MXN via SPEI if they wish to buy a token, or the token to an assigned on-chain address if they wish to sell.

Suarmi accesses 0x Protocol: Suarmi connects to the 0x Protocol via APIs to access its liquidity and trading capabilities.

Trade execution: Using the liquidity and routes provided by 0x, Suarmi performs the necessary trades to convert Suarmi’s own USD stablecoins into the token the user is trying to buy with FIAT or vice versa; if it were the other way around, when users sell volatile tokens, Suarmi would convert it into USD stablecoins. This ensures the user gets the best available price across multiple decentralized exchanges and liquidity sources.

Transaction settlement: Once the trade is executed, Suarmi settles the transaction by transferring the acquired tokens to the user’s wallet or, in the case of a sell order, receive the user’s token and dispatch via SPEI $MXN directly to the user’s bank account.

By integrating with the 0x Protocol, Suarmi benefits from its efficient and decentralized trading infrastructure, which allows for improved liquidity, competitive pricing, and reduced slippage. This integration enables Suarmi to offer users a wide selection of tokens while ensuring efficient and secure trades.

List any critical milestones and dependencies:

  1. Integration of 0x Protocol API to enable efficient and secure decentralized trading.
  2. Expansion of supported blockchains, as well as integration of 0x to our already existing blockchain repertoire, ensuring users have access to a wide range of cryptocurrencies, and us to keep on delivering.
  3. Continuous improvement of the UI to provide a fast, intuitive, and user-friendly experience.
  4. Growing and engaging the Suarmi community through social media, Discord, and other channels.

Describe how the solution/product benefits the 0x Protocol Ecosystem:

By integrating with the 0x Protocol, Suarmi brings new users and transactional volume to the ecosystem. The collaboration will enable seamless and secure trading of a diverse range of cryptocurrencies on Suarmi, further enhancing the overall liquidity and adoption of the 0x Protocol. Suarmi will continue to serve as the first Mexican crypto on/off ramp, providing easy access to digital assets for users in Mexico, bringing the narrative of Mexican DeFi even stronger.

Do you agree to tag your solution/product for visibility in 0x Explorer:

Yes, Suarmi agrees to tag its solution/product for visibility in 0x Explorer.

What are the actual and/or target usage metrics for your solution/product:

Our target metrics include a significant increase in the number of registered users, daily trading volume, and active community members. We aim to become the go-to platform for crypto on/off ramp in Mexico, with thousands of users and substantial trading volume. Our user-friendly UI, extensive blockchain integrations, and active community will contribute to achieving these metrics.

We are aiming to get 500k USD (we are currently at 130k) of monthly transactional volume to become self-sustainable at most 12 months after receiving the funds. We are also looking to expand into 2 other countries (tentatively Dominican Republic and Colombia). Finally, we are looking to include new distribution channels like telegram and WhatsApp to facilitate mobile first user experience.

Provide links to any of the following for the project:

Demo: ¿Cómo usar Suarmi? - YouTube [It’s in Spanish, but we can do an English demo if needed]

Website: Suarmi - Compra y vende cripto en México

Twitter: https://twitter.com/0xsuarmi?lang=es

Community [Telegram]: Telegram: Join Group Chat

GitHub: Our code is not public, but we could create a special repository if requested

Other: Fully Doxed Acerca de Suarmi. Suarmi nace de la necesidad que tenían… | by Suarmi | Medium

Podcasts:

  • We are waiting for Bankless DAO Es to upload our latest interview, it was recorded this past Thursday, once it’s uploaded we will either edit the post and add the link, or add it in a reply.

Funding Request

We kindly request a grant of 60k (30k worth of $ZRX and 30k worth of $USDC) from the 0x Protocol Treasury to support the development and expansion of Suarmi.

Be sure to give us feedback on this proposal, it’s the first proposal that Suarmi has ever done, so any feedback is going to help moving forward. We will await further instructions.

Hi,

This looks like a standard integration of the 0x API, which is something we have pretty often from various grant requests

The use-case is clear and product seems to be functional

My only concern is about the requested amount, from previous grants, a swap api integration would usually get a ~20K grant, depending on how much the product is developed

The Suarmi app seems pretty much finalised and IMO integrating the API would not justify the 60K amount

That said I think we can split this into several milestones, where the first can be integrating the API and getting some first proof of usage, then based on the results presented the community, we can decide of further steps and future grants

2 Likes

Hey Jonathan!

Pleasure to see you here in the 0x forum too. First of all I personally recommend the Suarmi project as they not only saved us from deadlines but also have a sleek easy-to-integrate ramp for the Mexican market.

Just one question. Is this grant going for full-time overhead? Is there a possibility that we could get a milestone breakdown for this to make it more viable and not drain the 0x treasury. It would help a lot to see how spending is really going to go towards to.

Wishing you the best!

1 Like

Hi 0xSHA and Juan Diego!, thanks for the feedback, we’re going to break down how the milestones would look like, with what 0xSHA told us, we are requesting 20k as an initial grant and after that the remaining 40k would be separated into two milestones which we will be quantified by the swap volume we would redirect to 0x, the intention behind this is to align incentives for both ourselves and 0x. Just as a reminder, the majority of the funds would be used for salaries, except for 10k in case milestone #2 is reached.

Integration and Proof of Usage ($20,000)

Objective: Redirect current swap volume to 0x on BSC, Arbitrum, Optimism, Celo and partially on Polygon

Key deliverable:
Integrate the 0x API into the Suarmi platform and its current products.

Milestone 1: UI Revamp and User Experience Enhancement ($20,000)

Trigger: Suarmi directs 150k of volume towards 0x in the past calendar month

Use of funds: Once we can prove we are able to provide value to the 0x protocol with our product as is at the moment, we would look to make improvements on it as well as develop new distribution mechanisms (messaging apps like telegram or whatsapp). The basic idea is to grow Suarmi’s total volume, which would directly lead to more volume being directed towards 0x.

Milestone 2: Onboarding Events and User Education ($20,000)

Trigger: Suarmi directs 300k of volume toward 0x in the past calendar month

Use of funds: Reaching this milestone would mean that we have found viable distribution channels and that our product is getting significant adoption. Hence, we would plan on doing various onboarding events across Mexico. In this case, more users would equal to more transactional volume, benefiting both 0x and Suarmi.

Organize and host a series of six onboarding events in different cities across Mexico, targeting newcomers to the crypto space.
Develop educational materials and resources to introduce users to decentralized finance (DeFi), NFTs, and the specific features offered by Suarmi.
Engage with local communities, crypto enthusiasts, and potential users to create awareness and foster adoption of Suarmi and the 0x Protocol.
Measure the impact of the onboarding events through user registrations, transaction volume, and user feedback.

Total Requested Grant: $60,000

In this case we fully agree with the 0xSHA, and by doing so, we would like to know what are the main objectives and goals that the 0x team have at the moment. With that in mind, we can work alongside each other and mutually help each other out.

We are open to suggestions, and possible changes to the milestones, so we can find common ground in this growth cycle.

Gm, small follow up on the Bankless DAO Es podcast, It’s live right now!

Suarmi <> Bankless DAO Es

We will await further instructions as well as feedback, have a nice weekend!

Thanks for sharing this proposal @Jonathan_Herrera and all your work on Suarmi. Having seamless on and offramps is definitely a big challenge in the industry, and one we need to solve. The ability for a user to go from any asset to an offramp is particularly valuable.

Regarding the proposal, a total of $60K seems a bit high for an integration of the 0x API. I imagined this would cost somewhere closer to $5K to do the initial integration. I’ll leave it to others to chime in but my thought here is that perhaps it might be better to start with a much small grant to integrate 0x itself, and from there post a new more detailed proposal on other pieces you plan to add to Suarmi that would offer new tools that would utilize 0x.

Thank you, nraghuveera, for your valuable feedback and insights. We appreciate your perspective on the cost of integration. While we understand that the initial integration may seem like a smaller endeavor, we want to emphasize that the true value lies in redirecting Suarmi’s existing trading volume to the 0x protocol.

By integrating 0x and redirecting our volume to their ecosystem, we envision creating a symbiotic relationship that benefits both Suarmi and 0x. This strategic move has the potential to significantly increase trading activity, liquidity, and user engagement, thereby driving mutual growth.

We also want to express our appreciation for 0xSHA’s mention of the 20k grant. It aligns well with our goals and provides the necessary support to kickstart the integration process. We believe it will effectively showcase the value of redirecting our volume to 0x and pave the way for further collaboration.

Furthermore, we would greatly appreciate any feedback on the milestones we mentioned earlier, as they play a crucial role in shaping the integration process and ensuring its success.

We are encouraged by the progress we have made so far and believe that we are finding common ground.

Thanks again!

Hi there, it seems the initial proposal has been subject to 2 week temperature check, thanks for the feedback!

We for sure stick around in the forum and are looking forward to doing more proposals that follow both 0x and Suarmi interest, thanks for the attention.

Kind regards, Suarmi team.

Hi @Jonathan_Herrera,

Suarmi looks an interesting project. We have had chat with many businesses and they face issues with on-ramp and off-ramp legally. I feel 0x swap would be a great use case with Suarmi.

I certainly agree that grant amount can be lower compared to the ask. I agree with @0xSHA’s comment.

Also, We would love to help you in this mission. How can I connect with you?

Hi there @tarunmangukiya :smiley:

You can send me a message here: jonathan(at)suarmi.com, and we can set up a call.

And yes, it’s hard having a off/on ramp here, luckily we keep moving forward :pray:t3:

1 Like