Handover to Przemek

Stellar Migration: Product Decision

TO: Przemek Kowalczyk FROM: Szymon Sypniewicz DATE: Feb 26, 2026

Recommendation

Directional YES to Stellar migration. Start two parallel 10-day tracks:

  1. Legal track: Finalize term sheet with SDF (already drafted, needs your decisions)
  2. Product track: Validate open product questions before full engineering commit

Both tracks run in parallel. Final GO/NO-GO decision on Day 10.

📄 View Full Technical Report — Comprehensive feasibility analysis (feature matrix, ecosystem assessment, cost estimates, risks)

Can We Build What We Want?

✅ Payments Infrastructure (Ready Today)

  • Pay Links: Claimable Balances - send to anyone via link, no wallet setup required
  • Fiat Rails: MoneyGram integration + SEP-24 for bank in/out
  • Cards: Wirex + Rain card issuance (Stellar compatible)
  • Gas Costs: $0.01 per transaction vs $0.10-0.30 on Base (90% reduction)

✅ Optional Yield Vaults (Ready Today)

  • Blend on Stellar: 6-10%+ yield for power users
  • Alternative: Keep Stakehouse/Morpho vaults on Base
  • Capacity limit: ~$10-15M AUM before yield compression
  • Deploy Day 1: Not a Phase 2 feature

⚠️ Base Layer Yield (Needs SDF Facilitation)

  • Goal: 4-5% automatic yield on ALL USD holdings (main product differentiator)
  • Requirement: NIM-sharing stablecoin (AUSD, USDVB, or similar) that distributes 3-4%+ reserve yield to partners
  • Status: Needs SDF to facilitate access
  • Scales infinitely: No capacity constraints (unlike vaults)
  • Critical: Without this, we're vault-only with limited scale

Open Product Questions (10-Day Validation)

1

Will SDF facilitate NIM-sharing stablecoin access on Stellar within 6 months?

Need written commitment + timeline for MiCA/GENIUS-compliant option (AUSD, USDVB, or other) with 3-4%+ NIM share.

Szymon can facilitate SDF intro to explore options

2

Soroban state archival risks - mitigation plan

Technical analysis completed (view full report). State archival identified as HIGH risk with medium likelihood. Mitigation: automated TTL extension service + use classic operations (Claimable Balances) where possible instead of Soroban contracts.

Engineering team to review mitigation plan and implementation approach

Term Sheet Status

Draft term sheet exists with detailed milestone structure. Key decisions needed from you:

Decision 1: Segregated Grant Structure

SDF's position: $5M total budget (including any growth incentives)

Proposed structure:

  • $4M development grant: Deliverable-based ONLY (no user number dependencies)
  • $1M promotional budget: Can be user-milestone-gated if SDF insists (10k/25k/50k users)

Your decision: Accept this segregation? What's the walk-away line if SDF demands user milestones on the $4M development grant?

Decision 2: Exit Clauses

Needed protections:

  • No-penalty termination if NIM-sharing stablecoin facilitation fails
  • Any other exit conditions needed based on product validation?

Your decision: What other protections do you want in the term sheet?

Economics Summary

Total grant $5M ($4M deliverables + $1M user pool)
Runway coverage 12-18 months
Year 1 AUM target $5-20M (realistic)
Risk-adjusted NPV +$500K to +$2M (marginally positive)
Gas savings vs Base 90% ($0.01 vs $0.10-0.30)

Decision Gate (Day 10)

The swing factor: NIM-sharing stablecoin facilitation

If SDF commits to NIM facilitation:

→ Full migration proceeds with complete product architecture (base layer + vaults + payments)

If SDF cannot facilitate NIM:

Option A: Payments-only integration ($2-3M reduced grant, yield stays on Base)

Option B: Vault-only product with limited capacity (revisit NIM in 12 months)

Option C: Walk away (stay on Base)

Secondary gates: Term sheet protections secured, no hard technical blockers identified

Next Steps for You

Legal Track (Your Leadership)

  • Decide on segregated grant structure ($4M deliverable-only vs $1M user-gated)
  • Define walk-away line if SDF demands user milestones on $4M
  • Work with Legal to draft exit clauses
  • Finalize term sheet with SDF

Timeline: 10 days to signed term sheet

Product Track (Your Leadership)

  • Contact SDF re: NIM-sharing stablecoin options + timeline
  • Commission Soroban technical audit from Engineering
  • Validate any other technical dependencies identified by Product/Engineering

Timeline: 10 days to GO/NO-GO report

Szymon available for SDF intros as needed