# Giddy Financial Model

Non-custodial mobile wallet giving retail users direct access to DeFi yield on Polygon.

- Canonical: https://finamodel.com/startups/giddy
- Excel download: https://finamodel.com/startup-models/giddy.xlsx
- Category: Crypto/Web3
- Model type: Marketplace / GMV
- Funding round: Seed
- Funding: $8M
- Founded: 2022
- Geography: Draper, Utah (HQ); blockchain (Polygon) - consumer market is global by nature.
- Customer: B2B2C

## About the company

Giddy is a non-custodial mobile wallet that gives retail users direct access to DeFi yield on Polygon. The product aims to make self-custody and smart-contract yield strategies more approachable, while keeping user assets outside a traditional centralised-custody model.

Its economics are AUM-driven rather than subscription-led. The relevant revenue is the spread between gross DeFi yield and the yield passed through to users; NFT mint proceeds and a DAO token treasury are secondary components, not substitutes for a recurring operating revenue base.

Forecast funded wallets, assets under management, allocation to yield products, gross strategy yield, and Giddy’s retained take rate. Build cash revenue separately from token treasury movements, then include wallet support, security, smart-contract, and acquisition costs. AUM growth, market prices, yield availability, user retention, and the spread retained are the major sensitivities.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

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.

## Revenue model

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.

## Traction & metrics

Reference data points (market context, not Giddy traction):
- Custodial platforms offer 0.1–8% APR; DeFi yields 10–200% APR.

## Competition / moat

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.

## Team & funding ask / use of funds

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## Recommended financial model

- **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.

## Frequently asked questions

### Is the Giddy financial model free?

Yes. The Giddy model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.