Wallets are essential infrastructure in Web3. Whether for DeFi interactions, meme transactions, or basic transfers, everyone needs a wallet to connect to the Web3 world. I have previously organized the classification of wallets (Web3 Wallet Guide), and to better understand Safe, I recommend reading my previous articles in advance.
Wallets that are frequently used, such as Binance Wallet and Metamask, are controlled by single corporate entities, while Safe has directly moved the wallet on-chain, achieving stronger functionality and interaction experience, while ensuring decentralized characteristics.
📌About the project structure:
Safe has two types of products.
1. Safe Wallet
This is a product that generates on-chain multi-signature wallets from interactions between EOA accounts (ordinary wallet accounts) and Safe contracts; the generated multi-signature wallet accounts are called Safe smart accounts. It is necessary to specify the signers and threshold value during the creation of the Safe smart account.
Users can create multi-signature accounts on-chain using their accounts, set corresponding parameter values, and then use this multi-signature account. Safe Wallet supports not only native tokens (like ETH) but also various ERC20 tokens and ERC721 NFTs, allowing users to view and manage these assets directly in the Safe wallet interface.
In addition, Safe Wallet has launched the Safe{RecoveryHub} feature, allowing users to set account recovery options for wallets on Ethereum, Arbitrum, Optimism, Polygon, and Gnosis Chain.
Building on account functionality, Safe Wallet has introduced interaction features such as Swap, ETH staking, and batch transactions. Meanwhile, the Safe smart account is also compatible with the AI Agent feature, providing AI management for account interactions.
The main application scenario for Safe Wallet primarily targets large capital amounts, mainly managing corporate funds, DAO treasury funds, or substantial personal assets.
2. Safe Core
This is a modular account abstraction stack aimed at developers, allowing them to build their own account abstract (AA) wallets using Safe Core, which includes Safe Smart Account, Safe Core SDK, and Safe Core API.
Safe Smart Account refers to the above-mentioned multi-signature account.
Regarding the SDK, it is a programming language referred to as a developer toolkit, and the Safe Core SDK includes tools such as the Starter kit, Protocol kit, API kit, Relay kit, etc., which developers can use to build account abstract wallets.
Regarding the API, it is also a programming language referred to as an interface, allowing developers to directly call all transaction information of Safe accounts, specifically known as the Safe Transaction Service API.
The development of Safe's account abstract wallet is also compatible with Ethereum's ERC4337, ERC7579, and EIP7702, as well as traditional key solution Passkeys, making it easier to manage and secure.
📌What is the current status of the Safe project?
According to official information, the Safe wallet currently supports 15 networks, including the Ethereum ecosystem, BNB, Avalanche, etc., with a total of 38 million Safe accounts deployed on the network, 6.4 million monthly active users, and a total value stored in Safe wallets exceeding 100 billion USD.
Taking the Ethereum mainnet as an example, the Safe wallet holds ETH valued at 4.7 billion USD and 67.4 billion in ERC20 tokens, with an average of 15,000 - 20,000 transactions provided by Safe each week.
Regarding Safe Core, several project teams are currently using its stack to develop AA wallets.
This year, Safe will also launch its own chain, Safenet, specifically supporting cross-chain transfers and interactions of Safe wallets. Notably, this chain is neither L2 nor L1, but rather a chain that connects the liquidity of L2 and L1, although the mainnet of Safenet is Ethereum.
Regarding Safe Core, several project teams are currently using its stack to develop AA wallets.
This year, Safe will also launch its own chain, Safenet, specifically supporting cross-chain transfers and interactions of Safe wallets. Notably, this chain is neither L2 nor L1, but rather a chain that connects the liquidity of L2 and L1, although the mainnet of Safenet is Ethereum.
📌What is the situation with the Safe token?
$SAFE tokens are obtained as rewards for interacting with the Safe wallet, and users can stake tokens within the wallet to increase rewards. The tokens also provide community governance functions.
$SAFE tokens will be listed on April 23, 2024, with a maximum supply of 1 billion. The current circulating supply is 540 million, and the price has dropped from 2.64 to a range of 0.5 - 0.6. Currently, the Safe project has not seen strong profitability, with potential revenue opportunities mainly from the launched Swap and ETH staking.
🔴In summary
Safe Wallet currently targets B-end users and individuals with significant fund management. Safe combines the security of multi-signature wallets and smart contracts, gaining trust from certain DeFi and companies.
In the future, when account abstract wallets become widespread, Safe will provide an SDK for account abstraction functionalities to support the development of account abstract wallets on Ethereum.
The Safenet launched this year will be a point of interest because it involves interoperability within the Ethereum ecosystem and may introduce the $SAFE token as gas.
As a wallet product, due to limited sources of profit, the $SAFE token will not provide substantial returns or functionalities for the time being. However, as infrastructure in the Web3 world, Safe plays a crucial role in smart contract wallets and account abstract wallets.
