Company:Delegate
Founders:Foobar
Participation:Seed
What is Delegate?
delegate.xyz is the best solution to secure valuable on-chain assets while still participating in NFT airdrop claims, token governance, and more. Users link cold wallets with hot wallets, and then the hot wallet can act on behalf of the cold wallet, like crypto power-of-attorney.
Team
Foobar - CEO, smart contract dev, 125k Twitter followers
Munam Wasi - COO, prev. Windranger Labs, ConstitutionDAO, Stanford Med
Ryeshrimp - CTO, full-stack dev shipping frontend, backend, SDKs
Munam Wasi - COO, prev. Windranger Labs, ConstitutionDAO, Stanford Med
Ryeshrimp - CTO, full-stack dev shipping frontend, backend, SDKs
Market
- The platform provides a solution for users to securely manage their on-chain assets while still participating in various activities such as NFT airdrop claims, token governance, and more.
- The platform can be integrated into login flows, token-gated minting and claiming, gaming actions, and DAO governance, among others.
- Delegate.cash can help to derisk new user acquisition from those who have already delegated, making it safer and easier for existing users to interact with apps from hot/mobile wallets without risking security.
- The platform is used by various projects in the blockchain and cryptocurrency space, such as ForgottenRunes, ArtBlocks, TokenProof, PunksClub, and InvisibleFriends, among others.
- For project developers, using Delegate.cash can help to improve their product by providing a neutral trustless delegation standard that can be integrated into their smart contracts and front-end applications.
Why we invested?
Our investment in Delegate is rooted in its ability to resolve critical issues within the blockchain and cryptocurrency industry. The project uniquely addresses security concerns by establishing a robust connection between cold hardware wallet vaults and hot burner wallets. This distinctive approach empowers users to securely manage their on-chain assets while actively participating in activities such as NFT airdrop claims and token governance. With its streamlined "delegate once, use forever" feature, Delegate offers users a seamless experience, bolstering their confidence to engage with blockchain applications.
Furthermore, delegate’s strategic collaborations with prominent projects and provision of open-sourced smart contract code highlight its commitment to industry-wide advancement. The introduction of "Liquid Delegates" introduces an innovative dimension, allowing for the trade of delegation rights in the form of ERC721 tokens. Overall, delegate’s groundbreaking solutions and experienced team position the project at the forefront of revolutionizing secure asset management and decentralized utility trading, aligning seamlessly with our investment vision.
Furthermore, delegate’s strategic collaborations with prominent projects and provision of open-sourced smart contract code highlight its commitment to industry-wide advancement. The introduction of "Liquid Delegates" introduces an innovative dimension, allowing for the trade of delegation rights in the form of ERC721 tokens. Overall, delegate’s groundbreaking solutions and experienced team position the project at the forefront of revolutionizing secure asset management and decentralized utility trading, aligning seamlessly with our investment vision.
Current Gaps/Pain Points
- Security:
One of the biggest concerns in the blockchain and cryptocurrency industry is security. Many users are hesitant to interact with blockchain applications and smart contracts because of the risk of hacks and attacks. Delegate. cash aims to address this by providing a secure way for users to manage their on-chain assets while still participating in various activities.
- Lack of infrastructure for token-gated experiences:
Many blockchain applications require users to hold a specific token in order to access certain features or participate in certain activities. However, there is currently a lack of infrastructure for verifying token ownership and providing access to these features.
What are Delegate Cash’s product offerings?
- Clean Separation Between Cold Hardware Wallet Vaults and Hot Burner Wallets:
Delegate Cash offers a clean separation between cold hardware wallet vaults and daily driver hot burner wallets to address the problem of hacks and vulnerabilities in the crypto infrastructure. This approach allows users to safely hold their assets in cold storage while still having convenient access to their funds via hot burner wallets.
- One-time Delegation for Future Interactions:
Delegate Cash offers a smart contract where users can "delegate once, use forever" by making a one-time transaction with their cold wallet and pointing to the hot wallet authorized to act on their behalf. This feature allows users to interact with different projects that adopt Delegate Cash solely with a burner wallet.
- Generative AI Tool:
Convrse has plans to develop a generative AI tool for 3D content creation. Similar to OpenAI's DALL-E for images, this AI tool will leverage the global library of 3D environments to generate new 3D spaces based on text prompts. The generative AI tool aims to streamline the process of creating immersive environments from scratch, providing users with a consumer-grade metaverse creation tool.
- Integration with Top Projects:
Delegate Cash has already been integrated into many top projects, with more to come. This integration allows users to easily interact with their favorite projects and manage their assets securely.
- Network Effect:
Delegate Cash offers a network effect that benefits both users and apps. Users delegate once and reuse forever on new apps, while new user acquisition is easier for apps onboarded to Delegate Cash.
- Protection of NFTs:
Delegate Cash has protected ~$750 million worth of NFTs in 13,500 wallets across 3,600 collections in cold wallet delegations in just six months. This feature highlights the platform's commitment to secure and reliable asset management.
- Open-sourced Smart Contract Code:
Delegate Cash offers open-sourced smart contract code and sample implementations within the documentation. This feature allows developers to easily integrate Delegate Cash into their projects and improve the security and reliability of their platforms.
Liquid Delegation
They are creating NFT infra to tokenize and trade the delegation rights themselves. They call this “Liquid Delegates”, because the delegations are now ERC721s that can be permissionlessly bought and sold on the open market, including their native marketplace.
It’s a programmatic escrow service that lets people rent out NFT utility using delegate cash. We will become the dominant trading platform for NFT utility generally, which for blue chips like Bored Apes is ~50% of their value (50 eth floor, 100 eth airdrops).
It’s a programmatic escrow service that lets people rent out NFT utility using delegate cash. We will become the dominant trading platform for NFT utility generally, which for blue chips like Bored Apes is ~50% of their value (50 eth floor, 100 eth airdrops).
Benefits
Capital Efficiency: To access the utility of an NFT today, investors have to either rent out the NFT or buy it from the marketplace. Liquid delegation presents a unique opportunity for investors who are only interested in the utility of the NFT can buy only the utility of the NFT directly from Delegate Cash’s marketplace.
Composability: Because the rental status quo operates on risky overcollateralized lending, all sorts of economic modeling must be done on both individual positions and the overall platform to avoid insolvency.
Composability: Because the rental status quo operates on risky overcollateralized lending, all sorts of economic modeling must be done on both individual positions and the overall platform to avoid insolvency.
Final thoughts
With Delegate's ability to securely manage on-chain assets while participating in activities like NFT airdrop claims and token governance, Delegate.xyz addresses a pressing concern within the industry.
The team behind Delegate.xyz possesses a wealth of experience, led by CEO Foobar with a strong Twitter following, COO Munam Wasi with a background in notable ventures, and CTO Ryeshrimp skilled in full-stack development. This experienced team lends credibility to the project's ability to deliver on its promises.
Delegate.xyz's presence within the market is tangible, securing over $800 million in total assets and finding adoption among numerous wallets. Its pivotal role as a technology provider for key NFT-related projects showcases its influence and relevance.
In conclusion, our investment in Delegate.xyz is based on its team's expertise, its impactful solutions addressing security and utility trading concerns, and its position as a key technology provider within the blockchain ecosystem.
The team behind Delegate.xyz possesses a wealth of experience, led by CEO Foobar with a strong Twitter following, COO Munam Wasi with a background in notable ventures, and CTO Ryeshrimp skilled in full-stack development. This experienced team lends credibility to the project's ability to deliver on its promises.
Delegate.xyz's presence within the market is tangible, securing over $800 million in total assets and finding adoption among numerous wallets. Its pivotal role as a technology provider for key NFT-related projects showcases its influence and relevance.
In conclusion, our investment in Delegate.xyz is based on its team's expertise, its impactful solutions addressing security and utility trading concerns, and its position as a key technology provider within the blockchain ecosystem.