Scaling the Dots

One year ago, we published Connecting the Dots to explain a simple idea: how the Exactly Protocol and the Exa App could come together to create a global, onchain fixed-rate credit market without relying on banks, credit bureaus, or local infrastructure. The Exa Tech Stack looks like this:

Twelve months later, that idea is no longer a diagram. It’s live, and moving millions of dollars in onchain credit card volume every month, with a new Exa Card purchase happening roughly every two minutes.

What happened in 2025:

• In February, we signed a partnership agreement with Uphold, marking the first concrete step toward bringing onchain fixed-rate credit to a regulated fintech with a global footprint. The Exa Credit Card and the Exa Loans will be integrated into the Uphold App to provide a great user experience.
• In March, we launched the Exa App, which lets anyone turn crypto
  into instant credit, get yield on your assets, and an Exa Visa Signature Credit Card to buy now, pay later, and hold your crypto assets.
• In July, we launched two services to the Exa App: Exa Loans and LiFi Swaps on the new “DeFi section”
• In September, we launched the Exa Mini App on the new (and beta) Base App during the BaseCamp event.
• In November, we launched the KYC-enabled Exactly Protocol on Base, unlocking integrations with Uphold and with other regulated fintech partners already in the pipeline. It allows any institution to offer compliant, asset-backed fixed-rate credit onchain.
• And also in November, a milestone that seems small but meant a lot: the first Exa Card purchase made directly inside the Uphold App during Devconnect. A simple user experience, powered entirely by the Exactly Protocol.

What comes next in 2026:

If 2025 was about connecting the Exactly Protocol and the Exa App, 2026 is about scaling the number of Exa users.

Our goal for 2026 is clear: to reach at least one million Exa users through the Exa App, the Uphold App (with API integration), the Base App (with web integration), and new partners coming soon.

We’re just getting started!

Own your finances

Depositing assets like ETH, WBTC, USDC, OP, and wstETH into the Exa App allows you to use them as collateral to access USDC instantly.

You can secure funding for whatever you need — a new car, a down payment on a house, or any significant life expense — by using your crypto holdings as collateral. The value of your assets determines your borrowing power, so you no longer have to choose between holding for the future and spending for today.

Key advantages include:

• No credit scoring needed, no paperwork.
• Fixed interest rates
• Repayment in up to 8 installments
• Instant access

Getting Started

Navigate to the DeFi section from the main menu in your Exa App and select the USDC Funding option. Review and accept the terms and conditions that clarify that the Exactly Protocol powers this feature.
The interface will immediately display your available funding capacity.

Your available funding explained.

This is not a traditional credit score. Instead, your available funding is a dynamic amount calculated based on your collateral, any outstanding loan balances, and recent credit card purchases linked to your Exa account. The more collateral you have and the lower your existing obligations, the more funding you can access.

Select your repayment schedule.

You are in complete control of your repayment terms. You can repay your balance in up to 8 fixed installments, with each payment due every 28 days. Whether you prefer to pay it all back in one go or spread it out over several months, the choice is yours. All payments are fixed and made in USDC.

Pick your first due date.

You can decide when you want to start your repayments to give you greater control over your cash flow. You can choose a first due date that aligns with your financial schedule. Please note that the maximum timeframe you can postpone your first payment is influenced by the total number of installments you have selected.

The future of finance is onchain

This new funding capability represents a significant step in making sophisticated DeFi tools accessible to everyone. What once required deep technical knowledge is now available through a simple, intuitive mobile app, empowering you to own your financial future truly.

Disclaimer: Exactly Protocol is a decentralized, open-source lending protocol on OP Mainnet. Through it, Exa App users can now access competitive rates determined by its open lending market. Exactly Protocol powers the USDC funding feature described. Exa App provides a simplified interface to access this protocol. All transactions are executed onchain.

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Exactly Protocol intends to join forces with Uphold to scale and accelerate the adoption of the Exa services. This proposed initiative1, formalized and approved by governance under EXAIP-21, can open new opportunities for the Exactly ecosystem. By collaborating with Uphold — the infrastructure provider for on-chain finance, serving millions of users across 140+ countries — Exactly is reinforcing its lending market, expanding liquidity, and simplifying access to decentralized finance.

Background

Throughout 2024, the Exactly team has been focused on developing and auditing the Exa App, ensuring that over 1,000 users have tested and provided valuable feedback to improve the product. As we prepare to scale, we recognize that expanding the product beyond its initial phase requires strategic partnerships and strong distribution channels, and this is where Uphold comes in.

With years of experience in blockchain financial services, Uphold brings a solid track record in digital asset management, secure custody, transparency, and seamless user onboarding. Its extensive user base and innovative financial solutions make it the perfect partner to potentially help drive Exa’s adoption and integrate Exa’s DeFi capabilities into a broader market.

A strategic partnership to drive growth

Uphold’s proposed¹ investment in this partnership includes $2 million in EXA token purchases, demonstrating their belief in Exactly’s vision.

Through joint marketing efforts, Uphold and Exactly can amplify the reach of the Exa services as part of a full suite of on-chain financial services available to the global user base.

Key benefits for users include:

• A Stronger Ecosystem: Uphold’s $2 million investment¹ in EXA tokens reinforces the Exactly ecosystem, supporting long-term development and stability.
• Enhanced Liquidity: With a proposed $5 million injection into Exactly’s lending protocol, users will benefit from deeper liquidity, ensuring a smoother borrowing and lending experience with competitive rates.
• More Accessibility: Uphold users, in certain markets, can gain seamless access to the Exa services, making it easier to access crypto-enabled credit while leveraging Uphold’s secure asset custody.

Participation and governance

Uphold’s commitment goes beyond liquidity and investment — Uphold intends to actively participate in Exactly Protocol’s governance. By holding EXA tokens, Uphold would gain voting rights within the Exactly DAO, ensuring that its contributions align with the long-term sustainability and growth of the protocol. Moreover, Uphold will secure an exclusive role as the Exa CeFi partner for the first six months post-launch, with the opportunity to extend this exclusivity based on new user activation milestones.

A future built on collaboration

This partnership is a major step toward making the benefits of DeFi more accessible to the mass market while bringing significant utility to the Exactly ecosystem. With Uphold’s support, we’re expanding liquidity, enhancing usability, and accelerating adoption.

Notes
¹The partnership and investment are subject to due diligence and required approvals.

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DeFi is known for its rapid innovation, but this progress often comes with a steep learning curve for new users. The complexities of managing seed phrases and navigating decentralized applications can overwhelm the space.

The Exa App team is focused on breaking down these barriers, starting with simplifying the account creation process. Users can now enjoy a secure and straightforward onboarding experience by integrating passkeys. This innovation enhances accessibility without compromising on the core values of security and self-custody.

This article will explore the Exa App Webauthn Owner Plugin, an ERC-6900 compliant solution that offers biometric authentication, smart account programmability, and cost-efficient signature verification.

What is a passkey, and why is it important?

A passkey is a modern authentication method that replaces traditional passwords and seed phrases with biometric verification (e.g., fingerprints, facial recognition) or device-based security. Passkeys enable secure login and transaction authorization without requiring users to manually store or directly manage sensitive private keys.

When users create an Exa App account, their device generates a P256 key pair. The private key is securely stored in the device’s Trusted Execution Environment (TEE), such as Apple’s Secure Enclave. This key never leaves the device, offering maximum security. If the user switches devices, the passkey can be synced through cloud services like iCloud or Google Cloud, depending on the device provider’s implementation, ensuring seamless recovery without compromising security.

The importance of passkeys in the crypto space cannot be overstated. Traditional passwords and recovery phrases are prone to loss and theft and are responsible for about 81% of hacking-related breaches. Passkeys mitigate these risks by leveraging hardware-level security combined with public-key cryptography, providing a robust solution that simplifies the user experience while enhancing security.

Passkeys also eliminate the need for users to back up their recovery phrases manually. With passkeys, even if a device is lost or replaced, the user can restore access to their account easily and securely via cloud backups.

The Exa App Webauthn Owner Plugin

In collaboration with Circle and Alchemy and audited by Quantstamp, the Exactly Protocol team has developed the Webauthn Owner Plugin to integrate passkeys into the Exa App and create a seamless self-custodial experience for Exa App users.

The plugin supports multiple verification methods, including:

• ECDSA signature verification: This is the standard used by most externally owned accounts (EOA) on Ethereum.
• ERC-1271 signature verification: This allows smart contracts to verify signatures, providing flexibility for different types of accounts.
• WebAuthn and P256 passkey signature verification: Thanks to the RIP-7212 standard, P256 passkey signatures are now fast, secure, and cheaper to verify.

Thanks to the recent Fjord network upgrade on Optimism, the RIP-7212 standard was introduced. This enables P256 signature verification to be 20 times cheaper than before, significantly reducing gas fees for passkey-based authentication. With RIP-7212, passkeys become not only more secure but also cost-effective for daily use in decentralized applications like the Exa App.

The Webauthn Owner Plugin uses the RIP-7212 precompiled contract to verify P256 passkey signatures at a significantly reduced gas cost.

This plugin also implements EIP-712, a standard for structured data signing in smart contracts, which makes transaction approval more user-friendly and secure. Together, these features ensure that users can interact with DeFi without needing to validate every single on-chain action manually — improving the overall user experience.

ERC-6900: Modular Accounts for a better Web3 experience

The Webauthn Owner Plugin is built on the ERC-6900 standard, which introduces a modular approach to smart contract accounts. This standard allows for greater flexibility in handling authentication and account management. With ERC-6900, developers can create reusable plugins integrating advanced features like passkey verification or multi-owner accounts.

For users, this means a more adaptable wallet system where they can benefit from features traditionally associated with externally owned accounts (EOA) or smart contracts without needing to manage complex private keys.

This modular approach allows developers to implement account features, like biometric authentication or multi-owner access, without needing to manage or expose sensitive private keys, making DeFi more secure and user-friendly.

What does this mean for the Exa App users?

The Exa App is designed to remove the complexities of DeFi and provide a smooth, user-friendly experience. Here’s how the app benefits users:

• Self-custodial wallet: Users maintain full ownership of their funds at all times. There is no reliance on third parties, and the private key is never exposed, providing the highest level of security.
• Simplicity: Instead of managing a 12-word recovery phrase, users can easily access their wallet through biometric authentication, removing the technical barriers typically associated with Web3.
• Cost-effective transactions: With RIP-7212, P256 passkey signature verification is 20 times cheaper, significantly reducing gas fees for authentication on supported Layer 2 networks like Optimism.

References:

• https://www.alchemy.com/blog/what-is-rip-7212
• https://www.alchemy.com/account-contracts
• https://www.alchemy.com/blog/hello-modular-account
• https://github.com/exactly/webauthn-owner-plugin
• https://www.erc6900.io/plugins/webauthn-owner-plugin
• https://certificate.quantstamp.com/full/exactly-web-authn-owner-plugin/195741fd-c62b-4a88-87b8-020dd454bd59/index.html
• https://gov.optimism.io/t/upgrade-proposal-9-fjord-network-upgrade/8236

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The Exa App, developed by Exa Labs — the team behind Exactly Protocol — combines decentralized finance innovation with a seamless user experience, bridging the gap between crypto and the end user. Its first product, the Exa Card, is the first onchain credit card available in over 160 countries, enabling users to pay globally while retaining complete control over their funds.

Addressing the DeFi barriers

DeFi has opened up opportunities for financial freedom, but adoption hasn’t reached the end user due to usability challenges. For most users, managing seed phrases, signing every transaction, and dealing with unpredictable gas fees are significant obstacles.

The Exa App was built to overcome these challenges by offering a simple and clean user experience designed with real-world users in mind — those looking for a straightforward way to integrate crypto into their daily financial activities.

The Exa App is built on the Optimism Mainnet, the same as the Exactly Protocol. Optimism allows the app to support high transaction volumes without compromising cost efficiency. Additionally, the integration of Alchemy’s Account Kit solves key pain points:

• Account abstraction (ERC-4337): Automatically creates self-custodial wallets for users without requiring technical knowledge.
• Gas sponsorship: Users never pay transaction fees, which the app absorbs, ensuring a seamless experience.
• Familiar login: The app uses passkeys for authentication, offering a Web2-like login experience without needing seed phrases or passwords.
• Automatic transaction signing: Users don’t need to approve each transaction, reducing friction and streamlining operations.

How the Exa App works

The Exa App is not just a fintech app but a gateway to decentralized finance through a clean UX. Designed for iOS and Android, the app enables users to manage their crypto assets, earn yield, and make real-world payments in installments — all while maintaining full custody of their funds through a secure account.

The onboarding process has been designed to eliminate the complexities traditionally associated with DeFi. Upon downloading the app, users create an account using passkeys that replace outdated systems like passwords and seed phrases with biometric-based authentication (e.g., fingerprints or facial recognition) or device-level security.

The Exa App uses passkeys, which abstract private key management from the user for ease of use. An account is derived from the user’s unique passkey, and it is used to sign blockchain transactions

We only work with password managers that allow a cloud-based backup, like Apple Keychain and Google Password manager. These backups comply with WebAuthn standards, ensuring a safe, seamless transition to new devices without exposing private keys or compromising user control.

The use of passkeys addresses one of the most significant challenges in crypto: the reliance on seed phrases and passwords, which are prone to theft and loss and are responsible for most security breaches in the space. By leveraging hardware-level security and public-key cryptography, passkeys offer an intuitive yet robust solution, removing technical barriers while enhancing safety.

After creating an account, users who want to get their Exa Card complete a quick Know Your Customer (KYC) verification process to comply with Visa regulations.

The Exa App, available in over 180 countries, ensures that anyone can access DeFi’s benefits anywhere.

The first onchain credit card

The Exa Card is the first product of the Exa App. It’s the world’s first onchain credit card that allows users to make purchases in the real world in up to six installments without the need to sell their crypto.

The Exa Card is issued immediately after the KYC and can be used for online and in-store purchases. Users can add their Exa Card to their smartphone wallet and start spending in minutes. It works with Apple Wallet and Google Wallet.

When users deposit supported assets — such as USDC, ETH, wstETH, WBTC, and OP — into the app, the funds are automatically allocated to Exactly Protocol’s markets, where they begin generating a variable APR. This yield is derived directly from interest paid by borrowers in the protocol, ensuring sustainable returns that are not reliant on token incentives.

The Exa Card allows users to manage their funds flexibly based on their financial needs.

Switching to “Pay now” in the Exa Card Pay Mode section allows users to make purchases directly from their deposited balance. Each time a payment is made, the required amount is seamlessly deducted from the user’s funds stored in Exactly Protocol’s lending markets. Until the moment of payment, these funds continue to generate variable yield, maximizing the efficiency of the user’s assets.

Buy now, pay later, and hold your crypto

The Exa Card allows users to make purchases in multiple installments without selling their assets.

Here’s how it works:

• Collateral and credit limit: Deposited assets act as collateral, determining the user’s credit limit. Deposits made into the Exa App are allocated to Exactly Protocol’s variable lending markets, generating variable yield based on borrowers’ demand.
• Onchain borrowing: When a user makes a purchase, the Exa App borrows the required amount on their behalf from Exactly Protocol’s fixed-rate lending markets. The borrowed funds are converted to USD and sent directly to the merchant. This interest rate is fixed and determined at the time of the transaction.
• Installments and repayment: Users can repay the loan in up to six fixed installments, scheduled every 28 days. This structured repayment cycle ensures predictability and avoids discrepancies caused by variable calendar months.

Users benefit from an innovative financial structure that combines fixed-rate borrowing with variable-rate deposit yields when using the Exa Card. This unique approach can result in a positive, neutral, or negative net effective interest rate for each purchase, depending on the relationship between the deposit yield and the loan’s fixed interest rate.

An example:

A user deposits $1,000 USDC and earns 5% APR in variable yield, which amounts to $50 over a year. Then, the user borrows $500 at a 7% fixed APR, incurring $35 in interest over the same period.

In this case, the user earns $50 from their deposit while paying $35 in loan interest, resulting in a positive net yield of $15. However, because the deposit yield is variable, the net result could vary based on market conditions. If the variable yield increases above the borrowing rate, the net result remains positive or improves. If the yield decreases, the net result could approach zero or even turn negative, depending on the duration and size of the loan relative to the deposit.

Combining variable deposit returns with fixed-rate credit repayments, this mechanism sets the Exa Card apart from traditional financial tools. It offers a dynamic financial structure that balances risk and reward and is tailored to the user’s specific financial strategy.

Join this journey

The Exa App is now in alpha testing, and we’re inviting you to join us on this journey. Join the waitlist here: https://exactly.app/ to get early access and experience the future of decentralized finance before anyone else.

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Introduction

In our mission to get DeFI closer to the end user, the Exactly Protocol has set a new standard for stability and predictability in crypto with the fixed-rate credit market.

Today, we are taking the next step with the launch of the Exa App. Designed to bridge the gap between crypto and the end user, the Exa App brings the Exactly Protocol’s core principles to your fingertips in a simple and sefl-custodial way.

A Shared Vision

As outlined in our initial master plan, which was updated a year ago, the Exactly Protocol and the Exa app converge in a shared vision: making DeFi innovative and user-friendly. While the Exactly Protocol serves as the infrastructure for fixed-income markets, the Exa App is the gateway for end users, offering seamless access to decentralized finance with an intuitive user experience.

The Exactly Protocol’s fixed-rate borrowing and lending market offers stability and predictability for users managing their assets. This robust infrastructure enables the Exa App to deliver seamless financial services while upholding the protocol’s security and decentralization.

Meet the Exa App

The Exa App, designed for iOS and Android, was built to offer a simple and clean user experience with real-world users in mind — those looking for a straightforward way to integrate crypto into their daily financial activities. Its first product, the Exa Card, is the first onchain credit card, enabling users to pay globally while retaining complete control over their funds.

The onboarding process has been designed to eliminate the complexities traditionally associated with DeFi. Upon downloading the app, users create an account using passkeys that replace outdated systems like passwords and seed phrases with biometric-based authentication (e.g., fingerprints or facial recognition) or device-level security.

After creating an account, users who want to get their Exa Card complete a quick Know Your Customer (KYC) verification process to comply with Visa regulations.

The Exa Card, available in over 180 countries, ensures anyone can access DeFi’s benefits anywhere.

Key Features of the Exa Card:

• Yield on deposits: When users deposit supported assets — such as USDC, ETH, wstETH, WBTC, and OP — into the app, the funds are automatically allocated to Exactly Protocol’s markets, where they begin generating a variable APR. This yield is derived directly from interest paid by borrowers in the protocol, ensuring sustainable returns that are not reliant on token incentives.
• Pay mode: In “Pay Now” mode, funds are spent directly from the deposited balance. Each time a payment is made, the required amount is seamlessly deducted from the user’s funds stored in Exactly Protocol’s lending markets. Until the moment of payment, these funds continue to generate variable yield, maximizing the efficiency of the user’s assets.
  Installment plan: this mode allows users to purchase in multiple installments without selling their assets. Deposits made into the Exa App are allocated to Exactly Protocol’s variable lending markets, generating variable yield based on borrowers’ demand and acting as collateral, determining the user’s credit limit. When a user makes a purchase, the Exa App borrows the required amount on their behalf from Exactly Protocol’s fixed-rate lending markets. The borrowed funds are converted to USD and sent directly to the merchant. This interest rate is fixed and determined at the time of the transaction.
• Installments and repayments: Users can repay the loan in up to six fixed installments, scheduled every 28 days. This structured repayment cycle ensures predictability and avoids discrepancies caused by variable calendar months.
• Self-custodial and onchain: The Exa Card is fully self-custodial, granting users complete control over their funds without relying on intermediaries. Operating entirely onchain, it leverages the Exactly Protocol’s infrastructure to ensure transparency and security.
• Gas sponsorship: The Exa App absorbs all gas costs associated with transactions, providing users with a seamless and cost-free experience.

Exa App Roadmap 𝚵

Dec-24: Alpha testing.

We are sending invites to users who sign up for the waitlist. Participants are encouraged to join our Discord and share their feedback to help us refine and improve the experience.

Key stats so far:

• Over 240 Exa Cards were created.
• More than 1,000 payments were processed.
• $33k in proceeds value generated.
• Total user account balances exceeding $160k.

Mar-25: Official launch on the app stores (iOS and Android)

• The Exa App will be available for download on app stores worldwide.

Apr-25: Partners integrations

• Integration with major Web3 mobile wallets and traditional payment networks to attract a broader user base.

Upcoming features post-launch:

• Integrated swaps: seamless in-app token exchanges.
• ACH & SEPA bank transfers
• On/Off ramp integrations.
• Exa Loans (fixed-rate loans in USDC up to 24 monthly installments).
• EXA token buy&stake.
• Cashback in USDC (with esEXA).
• RWA.
• Credit Scoring.

The New EXA Flywheel Effect 🎡

A powerful flywheel effect is set into motion every time a user purchases with the Exa Credit Card in installments.

Here’s how it works:

1. Exa Credit Card: Users buy in installments using the Exa App, which uses the Exactly Protocol to power fixed-rate loans.
2. Fixed Rate Loans: The borrower’s loan generates interest, a portion of which is collected as treasury fees.
3. Treasury Fees: The Exactly DAO earns a treasury fee in USDC equal to 20% of the interest rate fee paid by the borrower.
4. USDC Rewards: The DAO shares 50% of those treasury fees with EXA token holders participating in the staking program.

With this loop, more Exa App usage drives higher loan volume on the Exactly Protocol, generating more treasury fees for the DAO and delivering greater rewards for EXA stakers. This dynamic incentivizes community growth, DAO participation, and sustained demand for the EXA token.

The same flow will happen with the fixed-rate loans the Exa App will offer in Q2–25. Also, the Exa App will receive additional fees (fx, swap, interchange, etc) that will be distributed to the DAO’s Treasury Multisig.

For EXA token holders, the Exa App is more than just a payment solution — it’s a platform that strengthens the protocol’s ecosystem and amplifies token value through consistent treasury contributions and staking rewards.

The EXA flywheel effect ensures that every user interaction benefits the entire ecosystem, creating a sustainable growth and value-creation model.

This synergy exemplifies how DeFi can bridge the gap between blockchain technology and everyday life, proving that decentralized solutions can be simple, secure, and practical.

Conclusion

The Exactly Protocol sets the groundwork, and the Exa App builds the bridge. We invite you to explore the Exa App, experience its features, and join the Exactly Protocol community. Together, we’re not just imagining the future of finance — we’re building it.

Our endgame is to democratize access to financial services in a decentralized, non-custodial, and autonomous way.

The Exa App will be available on your smartphone in 2025; stay tuned!

Don’t tell anyone.

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In the third quarter of 2024, Exactly Protocol continued to achieve milestones, including the launch of the EXA Staking Program, further development of the Exa App, and key updates to enhance protocol security.

Exactly Protocol Updates

EXA Staking Program (stEXA)

September marked the implementation of [EXAIP-14], introducing the EXA Staking Program. After a successful governance process and audits by Chainsafe and Sherlock, EXA token holders can now stake their tokens to earn treasury fees and gain increased voting power. The program incentivizes long-term commitment, providing rewards based on the staking duration and amount.

The staking period lasts twelve months. Participants can add more EXA, claim fees, or unstake their tokens anytime. Users must keep their EXA staked for the entire period to receive the full treasury fees. Early withdrawals result in penalties, ensuring responsible staking practices.

• Voting Power: EXA stakers gain additional voting power, proportional to the length of their stake, which influences protocol decisions.
• Treasury Buybacks: The remaining fees will be used for discretionary EXA buybacks, supporting token value and further benefit the community.

Start staking EXA today here.

Take a look at the EXA Staking Program stats in the new Dune dashboard.

New Audits

• Exa App Webauthn Owner Plugin audited by Quantstamp (Jul-24)

The Exa App, powered by Exactly Protocol, offers users the first on-chain debit and credit card as its first product, integrated seamlessly into a mobile app, making DeFi more accessible.

This ERC-6900 compliant plugin allows users to create a self-custodial wallet without needing a seed phrase, using a passkey stored in their device and cloud. This innovation simplifies the DeFi experience for users, eliminating the hassle of managing passwords and handling complex transactions.

• Staking Contract Audit by Chainsfae (Aug-24)
• Staking Contract Audit by Sherlock (Aug-24)

Integrations & Partnerships

Hypernative

In this quarter, Exactly Protocol enhanced its security by partnering with Hypernative, a leading platform for proactive threat prevention and real-time monitoring. Approved through EXAIP-07 and EXAIP-12, this integration was implemented to strengthen protocol resilience with automated risk mitigation and contract pausing capabilities. Hypernative continuously monitors Exactly’s smart contracts, detecting threats and allowing the protocol to swiftly pause contracts during emergencies. This ensures the protection of user assets and stability while a manual unpause function remains under the control of the protocol’s multisig owner.

Exactly Protocol Stats

Exactly Protocol experienced steady user growth during this quarter, reaching 39k users and 391k esEXA tokens claimed. The esEXA tokens that initiate the vesting process reached 13% of the EXA total supply.

esEXA stats as of the end of Q3 2024:

• 2.2k active vesting streams
• 1.27M total esEXA currently vesting
• 299k total reserved EXA
• 63k total claimable EXA
• 1,160 esEXA holders
• 437k esEXA total supply

Exa App alpha testing stage

After completing the first transaction with the Exa Card in early August, the Exactly Protocol team began the internal testing phase of the Exa App. Following this, the app was rolled out to an initial group of alpha testers. Extensive feedback was collected during this phase, and the team is actively working on design improvements and addressing issues that surfaced.

The next step is to open the app to everyone who signed up for the waitlist. If you haven’t joined yet, register here.

The Exa App will soon be available for both Android and iOS users across more than 180 countries.

Stay updated by following us on Twitter, Discord, and DeBank.

After successfully passing the governance process and undergoing a thorough audit by Sherlock and Chainsafe, the [EXAIP-14] proposal is finally implemented with the launch of the EXA Staking Program (stEXA).

Purpose and background

Over the past two years, Exactly Protocol has grown from an early-stage DeFi protocol to one of the largest lending protocols on Optimism, according to DefiLlama, with 177k transactions, over 38k users, and almost 3k EXA holders. In March 2023, the Treasury Fee parameter was activated on the OP mainnet, collecting a percentage of the interest rate charges paid by borrowers and accumulating these fees in the Exactly DAO treasury.

The new EXA Staking Program allows EXA token holders to get treasury fees and gain additional voting power by staking their EXA tokens. This structured system of rewards is based on the staking duration and the amount staked, promoting long-term commitment and contributing to the Exactly protocol’s growth and stability.

stEXA details and how it works:

The EXA Staking Program is designed to reward the Exactly DAO participants through a structured and automatic distribution of protocol fees. A specified fraction (providerRatio) of the treasury fees will be assigned to the staking pool, with an initial parameter of 0.5 (50% of the fees).

The staking period will be twelve months. During this time, the stakeholder can add more EXA to their stake, claim fees, or unstake their entire position.

In addition to receiving dividends, stakers gain enhanced voting power, which increases with the staking duration. This additional voting power allows stakers to significantly influence protocol decisions, incentivizing users to commit to longer staking periods.

Moreover, participants in the Staking Program may receive extra rewards in other tokens, providing further incentives for long-term participation. These extra rewards, enhanced voting power, and regular dividends compelling EXA token holders to participate in the staking program.

The Treasury will conduct discretionary EXA buybacks using the remaining fees not distributed through the staking program. This approach helps to support the token’s value and benefits the EXA ecosystem.

The staking program rewards long-term EXA holders by incentivizing them to complete the full staking period. Users must keep their EXA staked for twelve months to receive the total fees. Early withdrawals will incur penalties, reducing the dividends awarded. Additionally, to encourage users to restart their positions, there will be a penalty for those who keep their stake active beyond the program’s end date.

The structured fee distribution and penalty mechanisms ensure fairness and promote responsible staking practices.

Initial parameters, such as the provider ratio, minimum staking time, and penalty factors, will be set and can be modified through governance.

Guide to stake

TL;DR

The EXA staking period is twelve months. You can add more EXA, claim fees, or unstake anytime. Early or late withdrawal will reduce your eligible rewards. Keep your EXA staked for the entire period to receive the full treasury fees. Start staking EXA today: https://app.exact.ly/staking

Additional Information:

• Chainsafe audit report
• Sherlock audit report
• Math notes
• Documentation

Stay updated by following us on Twitter, Discord, and DeBank.

In the second quarter of 2024, Exactly Protocol continued to grow and achieved milestones in its mission to enhance the DeFi ecosystem. Key highlights include the successful addition of the USDC native market, the listing of the EXA token on Coinstore, and new strategic partnerships and audits.

Exactly Protocol Updates

Enabling USDC Native: [EXAIP-11]

Following the approval of EXAIP-11, the USDC native market on the OP Mainnet was successfully added to Exactly Protocol last April. This transition was supported by Chaos Labs and the Optimism Foundation, which allocated $116,000 worth of OP tokens to incentivize the migration. By the end of Q2, USDC native reached 10M in deposits, while the USDC.e market saw deposits migrate from 10M to nearly 1 M.

To maintain the distribution of esEXA tokens and encourage engagement with the new pool, depositors and borrowers using USDC native receive esEXA tokens as rewards.

EXA Token Listing on Coinstore

On May 23, the EXA token was listed on Coinstore, a SEA-focused cryptocurrency exchange. This listing follows the approval of EXAIP-13 and supports our goal of increasing liquidity. We carried out joint marketing activities to ensure a successful launch and broader community engagement, including social media support and various publicity events.

New Audits:

• Sherlock Contest

Exactly Protocol participated in a security contest organized by Sherlock, a renowned web3 auditing project. The contest, which started on April 22, offered 69,000 USDC in rewards for identifying and fixing protocol vulnerabilities. This initiative reinforces Exactly Protocol’s commitment to safety and improvement by engaging the broader security community.

Sherlock contest details here.

• Exa App Webauthn Owner Plugin

The ERC-6900 compliant Webauthn Owner Plugin allows Exa App users to create a self-custodial wallet seamlessly without saving a seed phrase, using a passkey automatically stored in their device and cloud. This plugin was developed by the Exactly Protocol team, AlchemyPlatform, Circle, and it was audited by Quantstamp.

Quantstamp Exa App WebAuthn Plugin Audit (Jul-24)

This plugin is a key component of the Exa App, addressing the user experience challenge in DeFi. Many users find managing passwords and understanding complex concepts like gas fees overwhelming. The Exactly team aims to remove these barriers and provide a seamless DeFi experience.

Partnerships

Circle

Exactly Protocol has joined the Circle Alliance Program, a global network of like-minded companies and teams collaborating to build the future of money. As members, we look forward to making new connections, learning about USDC and Web3 technology, and innovating.

Provide EXA/WETH liquidity through our partners:

This quarter, new options were made available for users to provide EXA/WETH liquidity through our partners:

• Provide EXA-WETH liquidity on Velodrome and get VELO emissions.
• Provide liquidity to the EXA-WETH Velodrome pool through Extra Finance with 2x leverage and get VELO+fees.
• Also, at Extra Finance, deposit EXA and get yield in EXA and esEXA.
• Provide EXA-WETH liquidity through the Beefy Finance vault. The earned token is automatically swapped for EXA and WETH to acquire more of the same LP token.
• Provide liquidity to the EXA-WETH Velodrome pool at Yearn Finance.

Stats

Exactly Protocol continues to grow during Q2 2024, reaching 33k users and 421k esEXA tokens claimed.

esEXA stats as of the end of Q2 2024:

• 1701 active vesting streams

• 867k total esEXA currently vesting

• 199k total reserved EXA

• 18k total claimable EXA

• 880esEXA holders

• 381,417 esEXA total supply

Detailed stats can be found here: Exactly Protocol, EXA, esEXA.

What’s next?

Upcoming in Q3:

• Exactly Protocol Staking Program
• ExaApp: the first on-chain credit card

Stay updated by following us on Twitter, Discord and now DeBank.

In the first quarter of 2024, Exactly Protocol achieved a significant milestone by tackling the challenge of fixed interest rates with an innovative approach. After months of work behind the scenes, an upgrade to the first Interest Rate Model was successfully launched.

Governance efforts saw significant engagement, with five proposals passed through the voting process. These initiatives included strengthening security with partnerships and new audits, introducing the new Installments Router contract, and enabling USDC native on OP mainnet.

Exactly Protocol Updates

Security First

Exactly Protocol and Hypernative have joined forces through the EXAIP-07 EXA Security Grant Proposal to enhance Exactly’s security measures significantly. This strategic partnership aims to deploy Hypernative’s advanced threat detection and real-time monitoring platform, safeguarding Exactly Protocol against potential hacks or exploits. This proposal seeks a security grant of 25,000 EXA tokens over twelve months.

To facilitate the implementation of this EXAIP, the Exactly Protocol team is diligently working to equip the protocol with the capability to address security threats or incidents quickly. This includes integrating the functionality to pause contracts within a broad security framework. The feature is being audited and will be implemented shortly.

The Interest Rate Model Upgrade (IRM v2) is here!

On March 19, a major upgrade to the Interest Rate Model was successfully implemented according to the proposal outlined in EXAIP-08. This upgrade considerably improves the Exactly Protocol’s variable and fixed interest rate discovery process.

To increase capital efficiency, the variable interest rate depends on the variable pool utilization level (as in the previous model) and the protocol global utilization (variable pool plus all fixed-rate pools combined).

By introducing the double dependency on variable-pool and global utilization levels, together with a liquidity triggering mechanism (as in the previous model), it is possible to have better control of rate adjustments and lower the reserve requirement level. The immediate implication is a more efficient capital allocation.

It is worth noting that the change is designed so that users won’t notice the change in models for an asset’s low to medium global utilizations. Only when global utilization levels are high do the new features gain all their effectiveness, preventing liquidity issues.

https://www.youtube.com/watch?v=8g3kq9tEf3s

New Audits

During the first quarter of the year, the following audits were conducted:

ABDK Interest Rate Model v2 1st audit

ABDK Interest Rate Model v2 2nd audit

Chainsafe Interest Rate Model v2 audit

Hashlock Interest Rate Model v2 audit

Hashlock InstallmentRouter and New Market Roles audit

ABDK consulting IstallmentRouter and New Market Roles audit

Introducing Single-Transaction for Multi-Installment Payments

To bring Exactly Protocol’s users an even more flexible way to manage their borrows, we are introducing the new single-transaction for multi-installments payments feature, which enables borrowing an asset and repaying it in up to six fixed installments, each with a predetermined interest rate. This approach offers a stark and favorable contrast to the often unpredictable fluctuations of variable yields in DeFi, giving users the predictability they need for better budgeting and financial planning.

The Installments feature is not only a milestone in our web app for DeFi users but also sets the stage for our next big venture — the launch of the Exa App for the end-consumer.

New on the UI

Users can now manage their Active Vesting Streams on our web app.

Read mode only: easily access your dashboard — no wallet connection required!

Integrations & Partnerships

Open cover

ExactlyProtocol is now available on OpenCover!

Superform

While Exactly Protocol vaults are deployed on Optimism, with Superform, you can seamlessly deposit money from any chain using any token. 🌐

Parifi

Parifi has integrated the EscrowedEXA contract into its Beta Mainnet protocol. This partnership offers benefits like managing vested $PRF tokens through the contract, powered by Sablier, ensuring the gradual unlocking of rewards.

Protocol Stats

Exactly Protocol continues to grow during Q1 2024, reaching 32k users and a record of 421k esEXA tokens claimed.

Detailed stats can be found on our Dune Dashboard here.

What’s next for Exactly Protocol

Upcoming at Exactly Protocol on Q2:

• USDC native market with OP rewards
• Exactly Protocol Staking Program
• ExaApp: the first on-chain credit card

Follow us on Twitter and join our Discord to learn all the news.