WHITEPAPER
Index
1 Executive Summary
2 I. Wallet Solution
3 II. Decentralized Exchange
4 III. Payments
5 IV. DeFi
6 Team
7 Tokenonmics
8 Conclusion
9 Bibliography
Executive Summary
Key problems that Cash Tech is addressing:
Incumbent cryptocurrency wallet solutions offer limited functionality and fail
to encompass the broad possibilities of DeFi technology
The UI/UX of current wallet solutions is extremely difficult to navigate
Cryptocurrency users are forced to use fragmented and disconnected
services to access the full possibilities of blockchain technology
Some of the simplest applications of cryptocurrency are restricted. There are
few options for cryptocurrency users to spend their assets with merchants.
The Cash Tech application addresses several critical problems facing cryptocurrency users. Users
face limited optionality with incumbent wallet solutions and oftentimes are faced with difficult
decisions when choosing a wallet solution. Current wallets fail to encompass the broad possibilities
of blockchain technology, forcing users to incur tradeoffs when choosing a solution. These wallet
solutions fail to integrate highly-demanded features such as the ability to spend cryptocurrencies
in the real-world and access to DeFi solutions. Cash Tech is working towards becoming the first
all-encompassing self-hosted wallet solution for cryptocurrency users. The application will
provide cryptocurrency users with a versatile and secure wallet solution that integrates the diverse
features that users demand. Cash Tech is committed to providing users with a comprehensive
solution that does not force them to make tradeoffs. The following four sections detail the primary
pillars that Cash Tech is built upon – storage solution, DEX, payments, and DeFi. Following these
sections, the team and tokenomics are presented. The paper concludes with a section that
summarizes the Cash Tech application and considers its future outlook.
I. Wallet Solution
The overall demand to own, store, and transact with cryptocurrency assets has continuously risen
since their inception. Each market cycle has broadened the global presence of cryptocurrencies
and further engrained the asset class into the consciousness of netizens, institutional and retail
investors, and the wider mainstream.
The data clearly demonstrates this continued rise in demand. In March 2021, over 695 million
Google-ranked web pages reference Bitcoin. That’s a 98.5% increase since November 2020.
Every month, 1.8 million Bitcoin-related searches are carried out through Google in the US alone.
Naturally, the number of cryptocurrency addresses has been steadily rising alongside this
increased presence and interest. There are over 800 million Bitcoin addresses. Ethereum
addresses alone stand at roughly 113 million, a 59% increase from one year ago.
A rise in demand to own, store, and transact with cryptocurrency assets directly ties with an
increase in demand to use cryptocurrency wallet solutions. Most entrants to the cryptocurrency
market will initially use exchanges as their solution for buying, storing, and transacting. However, an
increasing portion are also demanding self-custody wallets where they can maintain control of
their assets and participate in broad functionality. Long-term holders are also demonstrating a
greater demand for self-hosted wallet solutions. The declining number of bitcoin held by
exchanges highlights the transition from third-party controlled bitcoin accounts to self-custody
wallets.
The number of bitcoin held across all exchanges has declined from a high of roughly 3 million in
March 2020 to 2.4 million in April 2021, a 20% decline. Self-hosted wallets tap into the true ethos of
cryptocurrencies. They facilitate cross-border, permissionless, censorship-resistant payments
and activity without possible restrictions imposed by intermediaries. Intermediary third-parties
may serve useful purposes but they subject users to stringent compliance checks, potential
censorship, and also control the assets of users. Such third-parties give rise to many of the
problems that cryptocurrency technology was developed to address.
While there is a clear rise in demand for self-hosted wallet solutions, the incumbent solutions
remain difficult to use and offer limited functionality. Newcomers face widespread confusion when
choosing a wallet solution. Recommendations for wallets vary widely and many wallets are only
suitable for those that are technically adept. Incumbent wallets typically provide selected features
to a high standard but fail to offer the broader possibilities of cryptocurrency technology. Those
that do offer broader functionality are typically the most challenging to operate.
First and foremost, Cash Tech will be a self-hosted wallet solution. Providing a UI/UX that is
accessible to all cryptocurrency users, regardless of level, is a primary imperative of Cash Tech.
Cash Tech will allow users to access the broader possibilities of cryptocurrency technology. The
application will provide users with versatile functionality and enable them to carry out activities in
the areas of decentralized exchanging, decentralized finance (DeFi), and real-world payments.
Each of these will be covered in more detail in the following sections. This section will focus entirely
on the properties of the Cash Tech wallet solution.
At its core, Cash Tech will be designed in a fashion that is extremely intuitive and frictionless to
navigate. A seamless UI/UX is at the heart of Cash Tech’s vision. Similar to how Steve Jobs designed
the Mac PC to be appealing to those unaccustomed to personal computing, cryptocurrency
wallets need a similar phenomenon. The cryptocurrency world needs to evolve beyond the era of
poorly designed wallets that are unfriendly to newcomers. The designs for the first release of the
Cash Tech application have already been finalized and have been carefully considered to provide a
frictionless user experience.
Cash Tech users will maintain control over their assets. Cash Tech does not store any assets. The
application technology simply provides an easy front-end for users to connect with the underlying
blockchains that are supported in the application. Users control their private keys and thereby
maintain custody of their assets. No data is stored on Cash Tech servers, making the application
highly secure. During the start-up process, it will be emphasized to users how to properly store
their private key. Cash Tech enables users to become their own bank while giving access to broad
financial services.
Offering users comprehensive functionality is a key imperative of Cash Tech. To achieve this, the
application must support several blockchains. Ethereum, Binance Smart Chain, Polkadot, Near,
Solana, and Celo will be supported in the initial release of the application. Further blockchain
support will be integrated as the application evolves. Cash Tech users can store any assets that are
native to the supported blockchains. This includes the primary cryptocurrencies of the networks
(e.g. ETH, BSC, DOT) and tokens launched on the network (e.g. ERC20, ERC721, BEP20). Moreover,
users will be able to store and display NFT assets. As it stands, the NFT market is deeply
fragmented. Widely disconnected exchanges offer heterogeneous storage and trading
capabilities. Cash Tech is one of the few wallet options that is committed to providing both a
sophisticated storage solution for NFT assets, and the ability to display them. NFT assets tied to any
of the supported blockchains can be stored and displayed within Cash Tech.
In the first release of the Cash Tech application, all of the primary features of a self-hosted wallet
solution will be accessible to users. Users will be able to carry out permissionless, borderless,
censorship-resistant payments across a decentralized network. Multiple blockchains will be
supported. Assets can be easily stored, sent, and received. The UI/UX design will make navigation
intuitive and frictionless. As future iterations of the application are released, a much wider suite of
features will be incorporated, positioning Cash Tech as the most comprehensive wallet solution on
the market. These will mainly be in the areas of decentralized exchanging, payments, and DeFi.
Each of these areas is covered in the following three sections.
II. Decentralized
Exchange
Converting between cryptocurrency assets has evolved into a vibrant marketplace. The Bitcoin
marketplace has evolved from one that consisted of illiquid peer-to-peer trades across channels
like BitcoinTalk and IRC to a globally interconnected liquid ecosystem of exchanges, OTC desks,
and brokerages. As the marketplace continues to evolve, decentralized exchanges (DEXs) are
playing a more important role. DEXs offer distinctive properties compared to centralized
exchanges (CEXs). They are non-custodial (i.e. do not store the users assets), have superior UXs,
no-KYC, and facilitate decentralized conversion between cryptocurrency assets without the need
for an intermediary. As they continue to grow, they will compete with centralized exchanges for
trading volume. In this section, we detail the growing role that decentralized infrastructure has to
play in the global cryptocurrency marketplace. We further explore the unique attributes of DEXs
and present how Cash Tech will incorporate all of the functionality of a DEX within its application.
CEXs serve an important role and will not be displaced by DEXs. Both exchange infrastructureswill
coexist and, in many cases, will share common users. CEXs play an important role in providing fiat
on and off ramps, an area that DEXs steer away from. However, DEXs address many of the
drawbacks of CEXs. CEXs juxtapose the true ethos of decentralization. While cryptocurrencies
were designed to facilitate value transfer without the need of an intermediary, CEXs act as an
intermediary. By doing so, they maintain control of their users assets, subject them to compliance
checks, and can carry out arbitrary censorship and restrictions.
DEXs allow users to maintain control of their assets. Users simply connect their wallets and maintain
custody of their private keys and associated assets. In contrast, CEXs control the private key
associated with user assets, exposing them to risks like security breaches and fraud.
Even the biggest cryptocurrency exchange Binance suffered a hack where they lost roughly $40
million worth of cryptocurrency assets. Binance has since launched its own DEX. CEXs also subject
users to KYC requirements and can restrict customers on their own discretion. DEXs allow users to
set up with no KYC and operate in an entirely decentralized manner, liberating users from arbitrary
censorship and restrictions.
The demand for DEXs is evident from their growing share of the cryptocurrency marketplace. As of
May 1st, DEXs represent 3.8% of global cryptocurrency trading volume, a figure that was essentially
nonexistent prior to 2019. Monthly trading volume executed by DEXs breached $60 billion in both
February and April. Huge milestones were hit during 2020 with monthly DEX volumes breaking $10
billion for the first time in August. In 2021, DEX activity has reached new heights. There are roughly 2
million unique DEX traders and monthly volume has surpassed $50 billion each month.
From a UX perspective, DEXs are also favorable for cryptocurrency user adoption and retention.
CEX designs are a foreign experience to those unfamiliar with brokerages in the financial world.
However, DEXs are intelligently designed to be more familiar to regular application users. Moreover,
for cryptocurrency users that already store some assets within wallets, DEXs are just one step away.
Simply linking their wallet to the DEX opens up exchange possibilities.
“DeFi UX is better than CeFi in many ways. While critics often focus on gas fees,
DeFi offers users superior security UX (non-custodial) and frictionless access.
Scanning a QR code and signing a MetaMask transaction is accessible and
closer to using Snapchat than fiddling with a traditional brokerage.”
Arjun Balaji
Cash Tech offers all of the key features of a DEX. The key features encompass:
Maintaining control of your assets
Superior UX
No-KYC or arbitrary restrictions
The ability to bilaterally convert between supported assets
Cash Tech facilitates bilateral conversion between assets native to the supported blockchains by
implementing atomic cross-chain swap technology. Cross-chain swaps utilize smart contracts to
enable exchanges between two parties. If the exchange is not carried out according to the
specified conditions (i.e. price, amount, etc.) and within a specific time frame, each party maintains
their assets and the exchange does not occur, ensuring complete security for each party. The
specific type of smart contract used to facilitate such swaps are known as hash time locked
contracts (HTLCs).
As detailed in section 1, the amount of BTC held on exchanges has been declining. However, DEX
activity has been rising. Cryptocurrency investors are demanding the best of both worlds. They
wish to maintain control of their assets while also keeping the option to bilaterally exchange with
other cryptocurrency assets. Cash Tech facilitates such activity among their supported
blockchains. Analysts anticipate that the activity on DEXs will continue to rise as “traders
increasingly prefer transacting in a crypto-native environment”. Cash Tech is positioning itself to
capture a significant share of this growing market.
III. Payments and
Merchant Network
Acting as medium-of-exchange is one of the underutilized properties of cryptocurrency
technology. There are several reasons behind its lack of use:
Restrictive fees
Prohibitive regulations
Inadequate infrastructure and a lack of merchants willing to accept cryptocurrency as payment
Cash Tech is onboarding a vast merchant network, giving users the possibility to spend their
cryptocurrency assets in a myriad of businesses. Cash Tech expects to onboard over 500,000
businesses to its merchant network. Through working with strategic partners, Cash Tech will
overcome the typical barriers cryptocurrency projects face when they seek to onboard merchant
networks.
Fees – Cryptocurrency fees have become excessive. The below chart highlights that the average
daily fee on the Ethereum network has exceeded $10 for several months. By both combining
merchants and spenders within the same application, payments can be made between the two
parties at no extra cost. On the contrary, Cash Tech has allocated tokens to reward users for
spending their cryptocurrency assets. Several initiatives are lined up where Cash Tech users will be
rewarded CATE tokens for making payments to merchants. 50 million CATE tokens have been
allocated for such initiatives. The token supply distribution will be covered in greater detail in the
tokenomics section.
Regulations – Regulations regarding the use of cryptocurrency assets as payment vary widely from
region to region. Some jurisdictions outright outlaw the activity. It's transparently permissible in
other jurisdictions. However, most jurisdictions fall somewhere in the middle. In these jurisdictions,
the regulation surrounding using cryptocurrency assets as payment is opaque. Cash Tech is
working closely with local partners to build its merchant network in these regions. By working with
local partners who stay updated on regulatory developments, merchants can confidently accept
crypto payments according to their local laws and update their practices when necessary.
Infrastructure – Cash Tech has a team dedicated to developing a wide merchant network. The
network is anticipated to number over 500,000. Several merchants already work with
cryptocurrency payment solutions. Online businesses that use Ecommerce, OpenCart, Ecwid,
nopCommerce, and PrestaShop will be able to easily integrate the Cash Tech merchant payments
solution. There will be a dedicated team and community that will assist other businesses with the
onboarding process. Businesses will be able to easily accept and settle transactions in
cryptocurrency through the Cash Tech merchant gateway. Moreover, freelancers will be able to
issue invoices and accept compensation in cryptocurrency through the merchant gateway. This
solution will open up businesses and freelancers to a field of opportunity. They will be able to open
their business to the growing economy of consumers and businesses that hold and use
cryptocurrencies.
Several cryptocurrency projects have tried and failed to implement merchant gateways that enable
businesses to accept and settle cryptocurrency payments. Cash Tech has identified the common
barriers faced to implementing such solutions and has built a dedicated team that will build a
merchant network of over 500,000 businesses. In addition to the ability to store, send, receive,
and exchange, Cash Tech application users will have unprecedented opportunities to spend their
cryptocurrency assets.
IV. DeFi
The potential of cryptocurrencies has expanded beyond “banking the unbanked”. Blockchain users
can now participate in much broader financial services. The rise of DeFi has enabled blockchain
users to access all of the possibilities that were previously confined to the financial sector. DeFi
participants can loan, borrow, and insure assets across a myriad of decentralized protocols.
Underpinned by decentralized architecture, DeFi facilitates permissionless participation in financial
services. Those who are restricted from the traditional financial system can easily access credit
markets, liquidity, and eclectic financial services.
The emergence of DeFi has ranked among the most exciting phenomena of the cryptocurrency
industry in recent years. Since the start of 2020, the space has recorded a rapid growth in active
users, liquidity, and products. The number of active DeFi addresses recently surpassed 2 million.
The liquidity locked in DeFi protocols has grown from under $1 billion at the start of 2020 to roughly
$65 billion at the start of May 2021. With a growing amount of liquidity being locked in the DeFi
ecosystem, previous concerns like unattractive slippage become outdated.
Alongside the growth in users and liquidity, DeFi-related protocols and applications continue to
proliferate. While the majority of the DeFi ecosystem has historically been built upon the Ethereum
blockchain, other networks have started hosting a growing number of DeFi solutions. Both Binance
Smart Chain and Polkadot have burgeoning DeFi ecosystems.
Cash Tech will be the only wallet solution that offers unabridged access to this rapidly evolving
space. Cash Tech is agnostic to the network and allows users to connect with the DeFi applications
of any of its supported blockchains. Users may be required to input personal data to access these
applications. This is stored and encrypted on the user’s device. If the same data is required for
another DeFi solution, users can submit the data that has already been stored.
As Cash Tech evolves, it will encompass the broader DeFi ecosystem, enabling users to easily
access their favourite DeFi solutions. The DeFi services that will be initially rolled out include a
selection of supported DeFi applications that have been rigorously tested for security, have deep
liquidity, and have a wide user base. This initial selection will allow Cash Tech users to lend, borrow,
and insure their assets. As the application evolves, support for a greater number of DeFi
applications and solutions will be integrated, allowing Cash Tech users to participate in riskier and
more experimentative DeFi solutions.
Team
Cash Tech is led by an executive team that has experience at the highest echelons of enterprise.
Their expertise spans consumer tech, sales and marketing, banking, and fashion. Each of the
executive team members has transitioned their full-time efforts to Cash Tech, applying their
knowledge from the enterprise world to build a leading application in the cryptocurrency world. In
addition to the executive team, Cash Tech has a team of five full-time developers. The remainder of
this section details each of the executive team members.
CEO – Jaxson Kim
Jaxson is the ideal executive lead to spearhead Cash Tech’s effort to
become the leading app for multi-chain, multi-purpose cryptocurrency
use. Jaxson dedicated over three years at leading South Korean
technology enterprises like LG. Jaxson specializes in sales and
marketing. His work with the mature consumer tech company LG gave
Jaxson a clear vision of how the cryptocurrency industry needs to evolve
and what kind of technology is required to get it there. After realizing this
vision, Jaxson assembled a team of unquestionable calibre who had the
right skillset to make Cash Tech a success.
COO – Ailee Kim
Ailee also holds extensive experience carrying out sales and marketing
at one of South Korea’s biggest enterprises. Ailee will lead the operating
efforts at Cash Tech, ensuring that the product is optimized for
adoption. Ailee will implement processes that position Cash Tech in a
place where it can be adopted by the mass of cryptocurrency
enthusiasts. Ailee’s previous sales and marketing experience exposed
her to how one of the most successful enterprises in South Korea
operates. Where relevant, this knowledge can be transitioned to Cash
Tech to help streamline adoption and usage.
CMO – Alex Shin
Alex held a prominent marketing position at one of the most coveted
companies in the fashion industry. Alex acted as Senior Brand Manager
at Gucci for over two years, guiding their strategic marketing and
branding efforts. Before Gucci, Alex spent three years managing
branding activities at another Korean enterprise. Alex’s marketing and
branding knowledge will be an invaluable asset to Cash Tech. Creating a
frictionless and intuitive design is central to Cash Tech’s value
proposition, and Alex will help Cash Tech create this.
CTO – Samuel Kim
Every great technology product has a phenomenal CTO behind it.
Samuel Kim is the perfect CTO to ensure that the technology
implemented by Cash Tech uses the correct tech stack and is rigorously
battle-tested. Kim has been immersed in computer engineering for over
a decade, with six years dedicated to education and over five years
working at two South Korean enterprises. Samuel played a key role
building the IT systems and platforms of companies at his previous role.
Samuel will oversee the development and delivery of Cash Tech while
ensuring that the right technology is used at all times.
CIO – Henry
Chief Information Officer Henry has experience working at the highest
level of banking. He spent several years leading the blockchain
department at a multinational bank in Hong Kong. After significant time
with enterprise clients, Henry transitioned to Cash Tech to build an
application that would completely change the landscape for retail
cryptocurrency users.
Tokenomics
The Cash Tech token (CATE) will play a critical role in how the Cash Tech application functions. There
is a maximum supply of 155 million CATE tokens. 50 million of these tokens have been allocated to
incentivize usage of the merchant network. Several rewards initiatives will be launched that will
compensate users of the Cash Tech merchant network with CATE tokens.
Merchants are required to hold a specified amount of CATE tokens to receive and settle payments
via the Cash Tech app. This constricts the available supply on the market, improving
demand-supply dynamics for long-term holders and advocates of the CATE token.
60 million CATE tokens were sold for fundraising purposes. Several fundraising rounds were carried
out which provided Cash Tech with the partners and resources necessary to execute on their vision
of building the world’s most comprehensive and versatile cryptocurrency wallet. The remaining
supply is split between operations (10 million tokens), the CATE Locker (10 million tokens), Cash
Tech team and advisors (20 million tokens), and the Cash Tech community (5 million tokens).
Conclusion
Cash Tech is positioning itself to be the most comprehensive and versatile wallet solution available
to cryptocurrency users. There is rising demand for both self-hosted wallet solutions and access to
diverse DeFi solutions. Cash Tech encompasses the qualities of a secure self-hosted wallet, a DEX,
a merchant payments network, and a DeFi services aggregator within a single application.
Grounded in a frictionless UX and robust security, Cash Tech aims to be the leading wallet solution
for cryptocurrency veterans and newcomers alike. The Cash Tech team will initially roll out a
sophisticated wallet solution that facilitates rarely seen features like NFT storage and display. In
future releases, cross-chain atomic swaps, a merchant payments network, and the ability to link
with DeFi solutions will all be integrated. Every feature is subject to a rigorous testing process
before being implemented to ensure maximal security.
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