Why Do Crypto Projects Invest in Wallets?

Avara, the company behind Aave Labs and the Lens DeSoc platform, launched a non-custodial Ethereum crypto wallet called Family for iOS. The 'all-in-one' app supports a wide range of NFTs, from audio to AR models. Family was developed by Los Feliz Engineering, acquired by Aave a year ago.

Family Wallet offers an in-app messenger that allows both chat and sharing of tokens and collectibles among friends’ contacts, enhancing its functionality as a versatile crypto management platform.

Adding a crypto wallet to the messenger proved successful in the Telegram messenger case, but adding a messaging function to a crypto wallet is a relatively new twist. Still, sending assets to a friend this way instead of via a cumbersome blockchain address is quite convenient.

The wallet offers streamlined crypto transfers and swaps via Stripe and supports different types of DeFi activities across Ethereum and several Layer 2 networks, including the likes of Base and Optimism. The "Refuel Wallet" function enables quick bridging of up to $50 in ETH from the Ethereum mainnet to any Layer 2 networks supported. Advanced features also include transaction simulations, approval management and gas refuelling among others. To protect from front-running, users can use Flashbots’ solution.

Following the general trend of simplified user experience, the wallet allows automated registration with legacy methods through Pocket, alongside traditional seed phrases as a backup. In manual mode, user keys are encrypted and stored locally on the user’s device. The app uses two-step authentication via biometrics for sensitive actions.

“Family is designed for everyone, with a focus on thoughtful, design-first details. Its simple interface and clear flows make it delightful and fun to use,” - shared Benji Taylor, the founder of Family and now Avara Chief Product Officer.

Blockchain projects craft their wallets as gateways that connect new users directly to companies' services. Custom wallets are tailored to work seamlessly with the project’s protocols, features, and tokens to ensure better integration into the ecosystem. The recent examples of this movement include Uniswap wallet, SAFE wallet by Gnosis, Magic Eden's wallet, and Fearless wallet.

In this case, a wallet not only creates monetization opportunities through directed traffic but also better showcases the company's products. The company behind a wallet can use it to address its users directly with incentives, promos, and marketing campaigns. Mobile apps with real-time notifications allow better interaction with users.

As the first point of interaction, a user-friendly wallet can lower the barrier to adoption, helping to build a base. To do this, the wallets created to introduce newcomers to the Web3 industry not only have to follow the fundamental requirements of performance and security but also focus on top-notch UX and UI.

This job was properly met in the Family case, and the first users have already outlined the “simplicity that makes everything accessible.”