The Opportunity
Most digital wallets hold significant stablecoin balances that sit idle:- User deposits awaiting transactions
- Float between deposit and withdrawal
- Treasury reserves and operational buffers
Business Models
- Spread Capture
- Loyalty Program
Model: Keep a portion of yield as revenue
- Deploy funds earning ~6-8% APY
- Pay users 4-5% APY
- Capture 2-3% spread as profit
- $10M in user deposits
- Earn 7% = $700k/year
- Pay users 5% = $500k/year
- Wallet profit: $200k/year
Implementation Pattern
Architecture for Wallets
Technical Integration
1
Omnibus Wallet Setup
Configure a master wallet for all user deposits:
2
Auto-Deploy Excess Funds
RebelFi automatically deploys funds above the buffer:
3
Handle Withdrawals
Maintain instant liquidity with buffer management:
4
Distribute Yield
Credit users with their portion of yield:
User Experience Options
Option 1: Automatic Yield (Transparent)
All balances automatically earn yield:Option 2: Savings Account (Explicit)
Users opt into a “Savings” account for yield:Option 3: Tiered Yield (Gamified)
Different yield rates based on balance or commitment:Revenue Model Examples
Example 1: Spread Model
Example 2: Premium Subscription
Compliance Considerations
Custody Model
Custody Model
- User funds remain in your custody
- Existing KYC/AML processes apply
- No change to regulatory status
- Clear user disclosures about yield generation
User Disclosure
User Disclosure
Recommended disclosures:
- Funds are deployed to DeFi protocols
- Yield rates are variable, not guaranteed
- Withdrawals remain instant (via buffer)
- You maintain custody at all times
Financial Reporting
Financial Reporting
Track yield distribution:
- Daily yield accrual calculations
- User-level yield attribution
- Tax reporting (1099-MISC for US users)
- Audit trail via RebelFi’s ledger
Implementation Timeline
Week 1-2: Integration
- Set up RebelFi account
- Configure omnibus wallet
- Deploy custody agent
- Test with small amounts
Week 3: Internal Testing
- Test deposit → yield deployment flow
- Test withdrawal → unwind flow
- Verify yield calculations
- Load testing with buffers
Week 4: Pilot Launch
- Launch to subset of users (opt-in beta)
- Monitor operations and allocations
- Gather user feedback
- Optimize buffer settings
Week 5+: Full Rollout
- Gradual rollout to all users
- Marketing campaign
- Monitor performance and optimize
Success Metrics
Track these KPIs:- TVL (Total Value Locked): Total user funds deployed
- Yield Generated: Total yield earned from protocols
- User Yield Distributed: Amount paid to users
- Revenue (Spread): Your profit from yield spread
- Buffer Efficiency: % of funds deployed vs idle
- Withdrawal Latency: Time from withdrawal request to settlement
Example: Neobank Implementation
Use Case: Digital bank with $100M in USDC deposits Configuration:- $5M buffer handles ~95% of withdrawal days
- For large withdrawal days, unwind operations in 1-2 minutes
- Average withdrawal delay: < 30 seconds