metadata: {"type": "project", "title": "CXID", "logoImg": "bafkreif3amlmvaqvjtfo3k73qhf47dg3b7zcemutamyj5g4szeob2f7p3i", "website": "https://cxid.io", "bannerImg": "bafkreickf4iksiylspxw5b4fiy4ktt46fmquab4dn3t4gulvu5lwraxk4i", "createdAt": 1690964656027, "credentials": {}, "description": "CXID is an infra that allows users of exchanges/wallets to handle deposits and withdrawals without using wallet addresses. We do this by transforming the usernames on exchanges into custom ENS names. \nPractically, if your username on binance is `marta`, then you automatically have an ENS name to receive deposits/withdrawals. That\u2019ll be `marta.binance.eth` or `marta.binance.cxid.eth` depending on the level of integration\n\nWe built a demo using the Binance pay API: \nhttps://www.youtube.com/shorts/qHbV_SbPhGs\nhttps://twitter.com/thisdavidboy/status/1679100979747213312\n\nProblem\n\n- The Existing Transfer Methods (Human error): Wallet-to-wallet crypto transfer has terrible UX. People make mistakes with these long-form wallet addresses. They also find it tedious visually scanning the recipient's address. Plus, there\u2019s the probability of sending to a network that\u2019s not available on the recipient exchange.\n\n- Market Research: Based on internal research, we have found that 40% of crypto users are not comfortable with the current UX of sending and receiving crypto.\n\n- Security Risks: There have been reports of security attacks on the [clipboards of crypto users](https://twitter.com/MetaMask/status/1674433394250317824), causing them to paste the wrong wallet address.\n\n- Global Adoption: One of the biggest issues with the global adoption of crypto is the user experience. One of the most successful technologies in crypto today is stablecoins, and sending USD stablecoins from person A to B requires users to understand things like networks and wallet addresses. These things are just too complicated for regular people.\n\nAt the core of this problem is enabling interoperability between CEXs and defi wallets where a large portion of volumes in crypto go. It's an attempt to improve the UX behind sending and receiving tokens with wallet addresses.\n\nWhat does this mean for exchanges/wallets?\n\n\n- Millions of dollars worth of crypto assets are lost monthly across exchanges/wallets globally. Mostly as a result of users sending to the wrong address/network. Our goal is to immediately stop the bleeding on exchanges and increase the amount of deposited assets that your users can trade and spend on the exchange.\n\n\n- This also reduces the number of hours customer support teams spend having to deal with cases of lost crypto, which is simply irreversible. Or, even the engineering effort required for crypto recovery, for more complex scenarios. \n\n\n- No gas fees to issue names, no additional cost for issuing names, all networks the exchange supports are supported, the  users are protected from depositing to the wrong network, and the name works in every single wallet that supports ENS (almost every single wallet that exists).\n\n\n- Most importantly, exchanges/custodial/MPC wallets are probably the first experience newbies have with crypto. So, we're helping them humanize the entire crypto experience. The aim is to drive mass adoption of crypto by making transactions more secure and less risky for everyone.\n\nAt the integration level, it requires very little engineering hours on the exchange's end. It's simply plug-and-play. We also allow custom implementation depending on the use case. This brings interoperability across exchanges and wallets and make ENS names the standard for sending crypto everywhere.\n\nCXID Building On The ENS Ecosystem\nENS has grown over the past couple of years at an impressive rate. Beyond the fact that the infra is permissionless, this massive growth is powered by three major things:\n\nThere's the identity/community motivation\nUtility motivation(replacing addresses with readable names)\nName flippers and trading motivation\nBuilder motivation (Funding of Public good projects and startups like ENS Vision)\n\nIn terms of numbers, this has resulted in:\n2.72m registered names\n699k unique owners\n570 integrations across wallets and dApps\n\n\nOne thing to note is that everything above has been achieved mainly from the Defi ecosystem. This is because the names are on-chain and you need to own your keys, pay your gas fees, and have sufficient ETH to buy the name. Impressively, so much progress has been achieved, and now every Defi wallet allows ENS names for deposits and withdrawals. \n\nIn recent months, the crypto ecosystem and particularly the ENS team have been pushing towards utility and mass adoption of the names. It started with the release of subdomains for name holders and off-chain resolvers. nick.eth in an interview with Evan also mentioned releasing integrations involving L2s which can reduce gas fees; and ultimately name prices for name registration. (https://twitter.com/evanmoyer_eth/status/1679460774975098884)\n\nCoinbase has set a precedent with this technology by mass registering users on their wallets with the cb.id ENS names. https://twitter.com/CoinbaseWallet/status/1571948476639887361\n\nIn the same vein, CXID is now building on ENS permissionless\u2019 infra to bring the powers of ENS to the mainstream. We're bringing ENS names to users of popular centralized exchanges and wallets.\n\n\nWith the mission of utility and mass adoption, the timing is right to bring ENS names to users of centralized exchanges. Due to the simple UX for users in terms of key management, centralized exchanges are the first point of contact for folks getting into the crypto space. Plus, it\u2019s a safe environment for crypto traders that want to trade assets with utmost speed. This has resulted in massive transaction volumes in the space. Statistically, it\u2019s multiples of the volumes on decentralized exchanges (https://www.coingecko.com/research/publications/2023-q1-crypto-report). That\u2019s hundreds of millions of daily transactions, a huge chunk of that number consisting of manual crypto transfers involving a human scanning wallet addresses and the appropriate network. \n\nWe\u2019ve done a specific survey with customer support folks at exchanges around the number of times in a week they get complaints about sending to wrong addresses or unsupported networks. It ranges between 10s to hundreds of complaints depending on the size of the exchange. This does not even document situations where the users don\u2019t reach out to customer support because they know crypto transactions are irreversible.\n\nTechnicals & Project scope\nWe are building a CCIP Gateway-as-a-Service product for crypto exchanges/wallets.\nShipped deliverables:\nCCIP Read gateway supporting address resolution.\nENSIP-10 resolver with ERC-3668 support for offchain resolution.\nDemo integration based on Binance Pay using the subdomain (<id>.binance.cxid.eth/<id>.binance.cxid.io).\nIntegration documentation draft.\nAnticipated deliverables:\nResolver contract audits\nENS Free (free and gas-free ENS subdomain registrations to serve as a funnel to drive core ENS growth and prove CXID versatility).\nA client-facing dashboard that lets the exchanges/wallets (or any entity at all) buy their ENS name, set up their users\u2019 sub domains, and host it themselves. This is specifically for exchanges or MPC wallets that want to self-host for security reasons. \nExpand CCIP Read gateway to support reverse lookups and custom data.\nCNAME Resolver contract: Enable name aliasing via a custom resolver.\nCNAME Resolver contract audits.\nReleasing our own MPC Wallet-as-a-Service that provides ENS names for all issued wallets.\n\nWe\u2019re leveraging the ENSIP-10 wildcard resolution and ERC-3668 CCIP Read to implement this product\n\n\nMedia: https://cointelegraph.com/news/this-platform-improves-ux-by-providing-cex-users-with-ens-names\n\nWebsite: https://cxid.io/", "logoImgData": {}, "bannerImgData": {}}
name: CXID