GI

Giddy Financial Model

Giddy is a non-custodial DeFi wallet (mobile) that abstracts away the complexity of DeFi investing. Key features:

• Non-custodial: users retain full control of assets; no seed phrase (powered by Torus decentralized key management).
• Access to DeFi yields (10–200% APR) without needing to audit smart contracts or manage migrations.
• No lock-up terms; withdrawals into USD at any time.
• Launching on Polygon blockchain.
• Four product components: Giddy Mobile, Giddy Smart Contracts, Giddy DAO, Giddy NFT Collections.

Not explicitly stated in deck. Implied model based on product description:

• Giddy is positioned as keeping full DeFi yield (10–200% APR) for users vs. custodial platforms that retain the spread. Revenue mechanism for Giddy itself (e.g., protocol fee, spread, subscription) is not disclosed.
• Giddy DAO and NFT Collections suggest potential token/governance and NFT sale revenue streams, but no specifics given.

Reference data points (market context, not Giddy traction):

• Custodial platforms offer 0.1–8% APR; DeFi yields 10–200% APR.

Competitors named:

• Custodial: BlockFi, crypto.com, Coinbase, Binance, Gemini.
• DeFi protocols: Uniswap, PancakeSwap (Binance Smart Chain), Ethereum Network.

Moat claimed:

• Decentralized key management via Torus (no seed phrase) - removes largest UX barrier to non-custodial wallets.
• Non-custodial structure passes full yield to user.

• Archetype + why: Consumer fintech / crypto yield app - AUM-driven revenue model (similar to robo-advisor or crypto lending P&L). Revenue = AUM × blended yield take-rate (the spread Giddy captures between gross DeFi yield and what is passed to users). Secondary revenue lines: NFT mint proceeds, DAO token treasury. This is not a SaaS or GMV model; the core driver is assets under management and the fee/spread earned on them.

• Forecast horizon & granularity: 3 years monthly (M1–M36). Months 1–6 heavy on user acquisition spend; steady state from M12+. Annual summary tabs.

• Key drivers & assumptions:
• Users / wallets activated
• M1 launch users: 500; growth rate: 20% MoM tapering to 5% by Y3 - no traction data in deck.
• Average AUM per wallet: $2,500 at launch, growing to $5,000 by Y3 - typical retail crypto retail allocation; nothing in deck.
• Blended DeFi gross yield: 10–200% APR (slide 3); model Base uses 25% gross yield on Polygon pools: conservative mid-range.
• Giddy take-rate (fee/spread kept by protocol): 1–3% of gross yield or AUM - not disclosed; comparable DeFi aggregators charge 10–20% of yield; using lower rate given non-custodial positioning.
• Polygon gas/transaction costs: $0.01–0.05 per transaction; low given Polygon L2; modelled as COGS.
• Smart contract audit & security costs: $150K one-time + $30K/yr ongoing.
• NFT collection revenue: one-time event, not recurring; exclude from Base, include in Bull.
• Customer acquisition cost (CAC): $25–$50 blended (crypto-native CAC benchmarks); nothing in deck.
• Monthly churn: 5% (crypto wallets show high early churn); sensitivity key variable.
• Headcount: 10 FTEs at launch; scale to 30 by Y3. Draper, UT cost base.

• Scenarios (Base / Bull / Bear - which variables flex):
• Bear: AUM/wallet = $1,000; take-rate = 0.5%; churn = 10%/mo; yield environment compressed (10% APR).
• Base: AUM/wallet = $2,500; take-rate = 1.5%; churn = 5%/mo; yield = 25% APR.
• Bull: AUM/wallet = $5,000; take-rate = 3%; churn = 2%/mo; yield = 50% APR; NFT mint revenue included.

• Required sheets / outputs:

1. Assumptions - all drivers, toggled by scenario.
2. User & AUM Model - wallet activations, churn, net active wallets, total AUM over time.
3. Revenue - fee/spread revenue, NFT/DAO (optional), total revenue.
4. P&L - revenue, COGS (gas, infrastructure), gross profit, S&M (CAC × new users), R&D, G&A, EBITDA.
5. Cash Flow & Runway - if raise amount known (not in deck); placeholder for funding round input.
6. Sensitivity - take-rate vs. churn matrix; AUM/wallet vs. yield environment.
7. Dashboard - AUM, active wallets, revenue, burn rate, runway KPIs.