Backpack: Empowering Personal Data Ownership and Simplifying DeFi Access through an Extensible, User-Centric Wallet

Executive Summary

Backpack is an innovative, open-source wallet designed to empower individuals by granting them control over their personal data, simplifying access to decentralized finance (DeFi) products, and creating seamless user experiences that cater to various financial personas. The project aims to achieve this vision by focusing on four key areas: badges, plugins, assets, and architecture. By leveraging existing open-source software (OSS) and partnering with like-minded projects, Backpack aims to revolutionize personal finance and democratize access to DeFi.

Key Features

Badges

Backpack's primary goal is to enable individuals to own, control, and exchange their personal data privately, securely, and with consent. Badges serve as a digital representation of personal data, stored and managed by the individual. Backpack simplifies the process of creating and managing badges, enabling users to exchange data for discounts or other benefits with participating merchants.

The initial implementation will be centrally hosted, with plans to transition towards a decentralized, L2, and on-chain solution in the future.

Plugins

Backpack aims to simplify access to DeFi products, making them accessible to the average user. By providing a clean and concise UX, Backpack turns complex monetary operations into simple user workflows. With an open-source approach, Backpack encourages developers to create and customize plugins, further extending functionality and choice for end users.

The plugin store architecture is likely to be based on the OSS dapp-sdk by MerokuDAO (https://github.com/merokudao/dapp-sdk), supported by Polygon.

Assets

Backpack's user-centric approach revolves around stablecoins, prioritizing usability and reducing currency exposure. Assets are partitioned by financial personas (spending, saving, and investing), catering to individual preferences and risk profiles. Ethereum-based assets are highly favored for their liquidity, access, and support.

Architecture

Backpack is designed with a mobile-first approach, focusing on EIP-4337 standards and considering a hybrid solution involving EOAs for specific utility operations. The project is evaluating options such as Unipass (https://unipass.id/) and Stackup.sh (https://stackup.sh/) to further enhance user experience and functionality.

Considered Open Source Software

Backpack's vision is supported by the integration and collaboration with various OSS projects, including:

• MerokuDAO's dapp-sdk (https://github.com/merokudao/dapp-sdk)
• Unipass (https://unipass.id/)
• Stackup.sh (https://stackup.sh/)
• Farcaster (https://farcaster.xyz/)
• SquidRouter (https://www.squidrouter.com/)
• Superfluid Finance (https://www.superfluid.finance/)
• Rocket Pool (https://rocketpool.net/)
• Diva Labs (https://www.divalabs.org/)
• Lido Finance (https://lido.fi/ethereum)

Conclusion

Backpack represents a new era in personal finance and DeFi accessibility, promoting data ownership, simplifying user experiences, and fostering an ecosystem of collaboration and growth. By securing a Gitcoin Grant OSS award, Backpack will further its mission to democratize access to DeFi and empower individuals in the rapidly evolving world of decentralized finance.