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WHO’S BUILDING WHAT?

WHAT USE CASES ARE BEING DEVELOPED IN STACKS ECOSYSTEM?

Who’s building what?	Category	What’s the web3 Equivalent	Target Audience
sBTC Bridge �built by sBTC Eng Working Group	Decentralized two-way peg	wBTC, tBTC (Threshold) BTC.b (Avalanche), rBTC (Rootstock)	Institutional Retail
ALEX & Velar	DEX	Uniswap	Retail
Arkadiko	CDP (collateralized debt protocol)	MakerDAO	Retail
Zest	Under collateralized loans	Maple	Institutional
Papaya	Liquid staking	Lido	Unsure
Magic Bridge	Atomic Swaps		Retail
Hermetica Finance	Options Protocol	Ribbon Finance	Retail
Bitflow	Stable Swap	Curve	Retail
Lending app (Stealth)	Lending	Aave	Retail

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May / 2023

GOALS FOR THIS MEETING

Review & Discuss �Audience Summary and Bridge Summary

Review & Discuss �Initial Research Questions�
Divide & Conquer�Action Items & Next Steps�

Progress so far:

15+ UX interviews complete
Insights shared with key stakeholders in sBTC working group�

Next step:

summarize findings & share with broader community

Phase 2/

Summarizing Findings

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POSSIBLE PERSONAS

Most to Least DeFi Savvy

	INSTITUTIONAL DEFI	RETAIL DEFI - POWER USER	RETAIL DEFI - CASUAL USER	RETAIL BITCOIN HOLDER
GOALS	Offer BTC yield to customers	Max yield!	Satisfy curiosity in using something new Hold Bitcoin long term	Hold Bitcoin long term Become a more knowledgeable Bitcoin user
NEEDS	Clear motivation/ reason to try out something new� Clear technical documentation� Needs sign off from multiple teams (legal, finance, ops)	Only needs to test once	Clear motivation/ reason to try out something new� Needs to test a small amount each time they bridge	Needs to test a small amount each time they bridge
PAINS	Engineering investments/ due diligence/ bandwidth constraints to get set up Smart contract risks
BEHAVIOR	Long lead time before deciding to use a product Moves 10s to 100s BTC at a time	Moves various amounts of BTC, frequently� Has a set process (VPN, specific wallets, maybe dedicated device)	Moves less than .05 BTC at a time� Uses a mix of hot/ cold storage� Little experience with bridges, more comfortable using applications	Rarely, if ever, moves Bitcoin� Uses a mix of hot/ cold storage

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THOUGHTS ON GTM

Focus on outside the US
Small Communities/ Regional Strategy�
“Ethereum was Testnet”

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May / 2023

Notion Page with Research Notes, Miro Board

Initial Research Questions

Which user type is our growth going to come from?
How does user behavior vary across personas?
Which use cases resonate with each persona/ user type and why?
What should the MVP for sBTC look like?
What are the user needs, pains and trade-offs when it comes to wrapped BTC? Workarounds for Bitcoin DeFi today?
all notes captured on Miro

Action Items

Complete Audience Summary (“so what column”)
Identify quotes for each section
Empathy maps by persona (Bitcoin vs DeFi)
Schedule mtgs for “using the findings”
Schedule any webinars/ etc
Finish report sections

Phase 2/

Summarizing Findings

7 of 31

May / 2023

Notion Page with Research Notes, Miro Board

Phase 2/

Report Outline

Bitcoin DeFi Landscape - Report outline

What is Bitcoin DeFi�
Summary of Bitcoin DeFi tools today

Competitive Summary

Opportunity for Bitcoin DeFi

Personas

UX Research Findings

✅ Audience summary

✅ Bridge summary

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sBTC Research

Phase 2 Approach and Notes

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May / 2023

Context

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May / 2023

Notion Page with Research Notes

Four conversations with Stacks product owners to uncover assumptions and pain points.�
Six conversations with people in Stacks, Bitcoin and Ethereum ecosystems to inform messaging guidelines.�
Competitive research and product reviews to understand what’s on the market.

Context/

Work so far

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May / 2023

Context

sBTC will launch some time in Q4 2023.�
There is/ will be a demand for non-custodial tokenized Bitcoin products, Bitcoin DeFi. In order to meet this demand, sBTC needs to launch with support across several key products. These products need to have a “Bitcoin first” user experience.�
To be ready for launch, we need a mix of research approaches to inform GTM, product design and partner incentives at launch.

Context/

Assumptions

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May / 2023

Insights

Insights/

Discussions with Product Owners

Liquidity and trading infrastructure are critical to good UX, regardless of use case.�
Understanding what to abstract and when is important, particularly when considering transaction fees.�
We can learn from existing examples, such as apps that support xBTC.�
Additional Notes in speaker section�
Figma File: Hiro Wallet NFT Onboarding Flow
Figma File: Hiro Intra Wallet Swap Flow

Hiro Wallet team put together a prototype for a Bitcoin first onboarding experience using the NFT purchase use case. The assumption is that a person doesn’t have any STX and has never used an STX wallet. �
After the person sets up the wallet (seed phrase, etc), they are shown a QR code to pay with BTC. After payment is detected, the wallet automatically initiates the following flow:
Wallet receives BTC
Wallet triggers sBTC conversion (either by calling the sBTC contract or using an AMM to swap)
Wallet uses sBTC to pay for NFT
Person receives NFT and possibly left over STX to cover fees any additional txns

Note this flow should work similarly with Lightning via LN swap.� Note: apps that support xBTC could be a great resource for lessons on UX.

How long does this take?

Receives BTC → 10 mins, 1 anchor block
Convert to sBTC → 10 mins, 1 anchor block
NFT purchase → 10 mins, 1 anchor block
Could be reduced to 20 mins by combining steps�

Pain Points: transaction times (20-30 mins), sBTC abstraction, transaction fees
Assumptions: people will prefer to see apps denominated in BTC�
Open Questions:

What are the liquidity and trading infrastructure needs?

Step 2 - for AMMs, you need pools with deep liquidity
Is this something that Magic Bridge could be used for?

How are transaction fees being handled? Sponsored or AMM?

LN swap uses sponsored transactions, suggested a 2 QR code approach
BTC.b (avalanche) seems to use sponsored transactions
Will probably be a combination of sponsored and AMM, where the first txn is sponsored.

How long will this transaction take?

This flow could be reduced to 20 mins by combining steps 2 and 3 (convert to sBTC + purchase NFT)

Miscellaneous

What does the refund flow look like?
Do people prefer to see NFT listings in BTC?
Discussion on how much to abstract sBTC, depends on use case

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May / 2023

Insights

Insights/

Messaging Discussions

Different terms resonate with or alienate specific persona types, it’s important to understand and prioritize the target audiences.�
Consistency reduces confusion, but the product ultimately speaks louder than anything else.�
Messaging Guidelines

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May / 2023

Insights

Insights/

Competitive Research

Many teams are working on some version of decentralized-two-way-pegs for Bitcoin. �
wBTC is the dominant player with over 90% of the TVL of Bitcoin in DeFi. For comparison,�

150K BTC is locked in wBTC, the next two most popular pegs Huobi BTC and BTC.b from Avalanche have a circulating supply of around 9K and 6K respectively�
5400 BTC is Lightning network capacity�

Most competitors have rolled out the product in phases, (gradual decentralization, peg-outs available later, early minting/ bootstrapping incentives)�
Comparison Table WIP, Product Reviews

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sBTC Research

Phase 2 Approach and Notes

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May / 2023

Notion Page with Research Notes, Miro Board

8 weeks with Open UX

Kick off Session, May 8, complete ✅
Scope and Approach, May 15, complete ✅
Recruiting Participants, May 25, complete ✅
Interview Guide, June 1, complete ✅
Interview Best Practices, Demo, June 5 ✅
Qualitative Interviews June 5 - June 12 ✅�Completed 15+ interviews�
Qualitative Data Analysis ✅
Summarizing research findings

Phase 2

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May / 2023

Notion Page with Research Notes, Miro Board

Definition of Success

Understand and present findings of key personas and use cases in an easy to read report, deliver by June 26
Research (including usability learnings) inform GTM and product strategies, learnings are based off of 15 qualitative interviews and ongoing competitive research
Establish feedback loop with technical team to ensure research is covering important questions and blindspots

Research Questions + Assumptions

Which user type is our growth going to come from? Bitcoiners or Web3 DeFi users?
How does user behavior vary across personas?
Which use cases resonate with each persona/ user type and why?
What should the MVP for sBTC look like?
What are the user needs, pains and trade-offs when it comes to wrapped BTC? Workarounds for Bitcoin DeFi today?
all notes captured on Miro

Identifying Target Users

Guideline is 5 interviews per target persona
Confirmed: Bitcoin holder, Web3 Defi user
Unconfirmed: Institutions, Developers

Phase 2/

Kickoff Session

Recording Passcode: 4Sp75Dy!

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May / 2023

Notion Page with Research Notes, Miro Board

Phase 2/

Scope, Approach,

Recruitment

Recording

Passcode: jC2#9xpV

Confirm Target Users

Guideline is 5 interviews per target persona
Confirmed: Bitcoin holder (of various bag sizes), Web3 Defi user

Confirm UX Flows

Need to confirm technical feasibility of each of these flows �(talk to engineering team)�

sBTC Bridge
Additional flows (Zest + Papaya) may be included if/ when designs are ready

Recruitment & Interview Guides

Goal - 15-20 interviews, 5 scheduled so far (as of 6/2)
Recruitment Plan
Screener, Calendly
Interview Guide�

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May / 2023

Phase 2/

UX Interviews

Interview Insights Framework

💸 - interview payment complete�🧡 - Bitcoin User�💜 - DeFi User

🟢 Reviewed Interviews, notes and timestamps complete

Mon, June 5, 10 am ET, notes, recording, 7J6#^6O& 💸 💜
Mon, June 5, 12:30 pm ET, Video e+s64U05 Raw notes 💸 💜
Mon, June 5, 3 pm ET, Video c@P83F8N Raw notes 💸 💜
Tue, June 6, 4 am ET, notes, Video, A8A+ex6m 💸 💜
Tue, June 6, 6:30 am ET, notes, recording, &MPA3eXE 💸 💜
Tues, June 6, 1 pm ET, notes, recording, ?aaJC7$b ⬜️ 💜
Tues, June 6, 4 pm ET, notes, recording, %fONm3f1 💸 🧡
Tues, June 6, 5 pm ET, notes, recording, U*7AS$b. 💸 💜
Wed, June 7, 8 am ET, notes, recording, .h8$c!x* 💸 🧡
Thurs, June 8, 3:30 pm ET, notes, recording, @ThGXTZ5 💸 🧡
Thurs, June 8, 6 am, notes, recording, 6^=NTDpW 💸 💜
Wed, June 14, 3 pm ET , notes, recording, 45@ahb.C 💸
Wed, June 14, 4 pm ET , notes, recording, Yi5in$k4 💸
Thurs, June 22, 5 pm ET, notes, recording, DWWt=e9+ ⬜️ 🧡

🔴 Discarded Interviews (respondents gave inconsistent answers, unlikely target users)

Chris, Tue, June 6, 9 am ET, notes, recording, J6=iy5D8 💸
Kevin, Tue, June 6, 10 am ET, notes, recording, FnhFCw8$ 💸
Thomas, Fri, June 9, 5 pm ET, notes, recording, XgA?f3.j 💸
David, Wed, June 7, 6 pm ET, notes, recording, ZUzS5$jf 💸

No Shows

Joao, Mon, June 5, 4 pm ET, no show

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May / 2023

Notion Page with Research Notes, Miro Board

10 mins - Review & Discuss Audience Summary and Bridge Summary
10 mins - Review & Discuss Initial Research Questions
5 mins - Action Items & Next Steps�

Initial Research Questions

Which user type is our growth going to come from?
How does user behavior vary across personas?
Which use cases resonate with each persona/ user type and why?
What should the MVP for sBTC look like?
What are the user needs, pains and trade-offs when it comes to wrapped BTC? Workarounds for Bitcoin DeFi today?
all notes captured on Miro

Action Items

Complete Audience Summary (“so what column”)
Identify quotes for each section
Empathy maps by persona (Bitcoin vs DeFi)
Schedule mtgs for “using the findings”
Schedule any webinars/ etc
Finish report sections

Phase 2/

Summarizing Findings

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More Notes

May / 2023

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tBTC

Threshold Network

Product Review

Description: tBTC is a fully Bitcoin-backed ERC-20 token pegged to the price of Bitcoin. The company behind tTBC is the Threshold Network (merger between KEEP and NuCypher). It first launched in May 2020, the major players are Keep, Summa, and the Cross-Chain Group. It had a vulnerability that required it to pause deposits. tBTC relaunched in September 2020 and then again in November 30, 2022.

Cir Supply: 733 as of June 2, 2023

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rBTC

Rootstock PowPeg

Product Review

Description: Rootstock (RSK) is an EVM compatible sidechain designed to be fully compatible with the Bitcoin blockchain. The bridge was initially launched in Dec 2020 with a federated model, it later upgraded to a system where 9 organizations support the Powpeg bridge but they have no direct control of Bitcoin multig private keys. There are roughly 3500 RBTC in circulation as of April 2023. As far as I can tell, peg-outs are not yet possible.

Cir Supply: 3540 as of June 2, 2023

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	Bitcoin Only	Web3 Native
Needs	Has bitcoin bags, �wants to do something with them
Pains	existing tools aren’t “Bitcoin first” experience�(I dont want to have to get another token)	Bridges are scary.
Pains	Process takes so many steps, lots of friction, when you get stuck you don’t know what to do, transaction times (20-30 mins), abstraction, transaction fees
Use Cases	A way to do a bitcoin backed loan without a centralized custodian	Yield-bearing defi app that’s relatively safe, easy to use and engaging
Value Props	Non-custodial, safe	yield

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End.

May / 2023

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WHO’S BUILDING WHAT?

WHAT USE CASES ARE BEING DEVELOPED IN STACKS ECOSYSTEM?

Who’s building what?	Controlled Testnet	Public Testnet
sBTC Bridge (Eng Working Group)
ALEX & Velar	Actively testing
Arkadiko
Zest
Papaya	Actively testing
Magic Bridge
Hermetica Finance	Actively testing
Bitflow
Lending app (Stealth)

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