Crypto protocol Fluidity Money said today it’s partnering with the enterprise crypto payments app Request Finance to give its users a shot at landing some very significant rewards whenever they send a payment.
Fluidity Money bills itself as a “spend-to-earn” DeFi protocol that works very differently to the traditional crypto cashback schemes offered in the digital payments industry. Most cashback programs are offered in partnership with credit card providers and financed through high interchange fees that are passed onto consumers, as well as extortionate overdraft fees ranging from 15% to 27%.
Fluidity Money does things quite differently. It works by minting its own stablecoins, known as “Fluid Assets”, which are essentially wrapped versions of tokens like USDC and USDT. Users can mint new Fluid Assets within the Fluidity Webapp on a one-to-one basis (so they get 1 fUSDC for 1 USDC, for example) to generate potentially massive rewards each time they use those tokens to pay for something.
The way it works is very clever. The USDC or USDT that’s used to mint Fluid stablecoins is immediately deposited into a third-party DeFi protocol such as Compound, with 80% of the yield generated there being used to fund Fluidity’s cashback rewards. Those rewards are then paid out randomly, with each transaction standing a 40% to 70% chance of earning yield that could be significantly higher than the amount sent. Each transaction reward is split 80%-20% between the sender and the receiver.
By partnering with Request Finance, Fluidity is bringing its cashback rewards to hundreds of businesses and merchants that use the popular crypto payments app. Request Finance serves thousands of businesses with its invoice, payroll, expense and payment request features. Each time someone uses the app to send a payment using a Fluid stablecoin instead of a regular cryptocurrency, both them and their client stand a chance to earn a reward ranging from a few cents to possibly hundreds of dollars.
What’s more, Fluidity Money said it plans to expand its rewards offering to other loyalty programs and possibly enable users to earn non-fungible tokens (NFTs) as rewards, instead of crypto. Those NFTs could potentially represent anything from tickets to physical events, merchant credits like air miles, digital collectibles and more.
Fluidity Money Chief Executive Shahmeer Chaudhry said Request Finance has grown to become one of the most widely used crypto payment apps, helping thousands of enterprises and decentralized autonomous organizations use stablecoins more easily. “We wanted to work with them to introduce this cashback program as a fun way of rewarding people for using stablecoins for payments,” Chaudhry said.
Vijay Garg, founder of MapleBlock Capital, one of the chief backers of Fluidity Money, points out that cashback and loyalty reward programs have shown themselves to be hugely effective at driving adoption of digital payments in Web2. “Google Pay’s 2019 #StampwaliDiwali campaign in India, and the 2022 Huat Pals campaign in Singapore are great examples of this,” Garg said. “We believe that a similar strategy can help to drive the adoption of crypto payments.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source : Crypto Daily