xDAI Fiat on/off Ramp Using Wyre 💱

Hi from RaidGuild:wave:t3:: champions of xDAI & Drinkers of HNY, we have a proposal for the #1Hive community :beers:

HONEY is MONEY right ?

Well it’s still darn difficult to get honey out of xDAI and into your wallet :money_with_wings: So RaidGuild and the STAKEhaus DAO want to create a fiat(local currency) on/off ramp solution.

We’ve got a team of Web3 engineers teaming up with the xDAI developer community & Wyre ready to take this on & would love the support of 1Hive :handshake:

What does the community think about this proposal, would you support a distribution of honey to aid in creation of a local currency on & off ramp ?

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Can you elaborate on the local fiat currency? Will it be like a stablecoin for Honey?

Definitely like the idea!

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Like :dollar: $USD / :euro:EURO / :yen: YEN / :pound: POUNDS the paper currencies you buy food with :stuck_out_tongue:

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Alright, Alright. I see you guys :wink:

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Brainstorming from our developer team:

We are thinking about a fully decentralised peer to peer exchange. Where we as a service provider only provide order matching service. Other than that all the payments and confirmations are done by people manually.

We know that this peer-to-peer payment can not be cross border, still will try to develop something that people can use it without any fear and a fee of order of 2%

Take for example - Let’s say we both are in India with Indian bank accounts. Here we can directly transfer money to each other’s bank account instantly with various means (bank transfer, UPI, payment gateway) Now you have earned 5k dai that you want to get in your bank account so that you can use it for your daily expenses Our app allows you to put a sell order with your bank account details for receiving fiat payment There will be another buy order, our platform will match these orders. Buyer then transfers money to seller’s bank account and sends transaction details to seller. Seller then confirms that he has received fiat in bank account. He confirms transaction in our app and sends DAI to buyer

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Phase 1: Simple peer to peer exchange of USD >>> xDai where users are matching their own orders, verify payments manually.

We’re still looking into a dispute resolution provider at the moment (May be manual) once we get that we’ll put in a request for the first disbursal of HONEY :honey_pot:

Is there a reason to go with peer to peer versus working with a provider like Wyre? It seems like manual payments would have really high friction and be pretty complicated right? Something like pull out a debit/credit card and add funds, or link an account and you can convert to fiat?

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Iv’e invited Tarun here to answer this question, I think the main concern is around reducing the fees to the users. Ideally we want the lowest cost for users and by doing peer to peer we don’t need to charge anything for running the platform.

The only fee will be because of payment gateways and that will be passed on to sellers.

We’re still researching all the options available to us though :books:

Hoping to mimic the success of Localcryptos.com

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I love this idea , also is it possible to check other solutions like skrill.com for example or maybe some decentralized p2p payment blockchain project ?

It’s not super clear to me at this point how Wyre works on the FIAT->crypto providers side, but it sounds similar to an app I’ve been using :

On the front side it allows user to directly buy DAI from they fiat currency (EUR/USD/GBP) and have them sent to an Ethereum Wallet.

But under the hood, anyone can go on https://pools.ramp.network/#/ and become a provider for DAI.
The way it works is that as a provider you create a pool contract where you put your DAI. At the same time you connect your fintech account (Revolut at least, maybe more ?) and they will use their API to detect incoming transfers on your account. When an incoming transfer occurs, they automatically detect if that is a Ramp user trying to get some DAI, so they will take the equivalent in DAI from your pool and send it to this person.
It is not 100% decentralized and might require KYC, but the idea is very cool because anyone can on-ramp people from fiat to crypto, with minimal manual operation.

I think volume is quite low right now, but the concept is nice and probably adaptable to xDAI.

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Good find. Glad to know that Ramp has done most of what we want to achieve with this proposal.

Difference is ramp is the running server to detect incoming transfers and thus have become point of centralisation. Our idea is to allow provider to run their own server while providing them required tools to run such a server. So one step further from Ramp in direction of decentralisation.

@lkngtn
We started with the clear goal of easing on ramp and off ramp experience for dApp users. Here we are developing a peer to peer solution because this way dApp developers can decide to become a provider of the token they are using in their app. And thus facilitate a seamless on ramp or off ramp experience to their users. We also wanted to avoid centralisation because it will requires us to charge some transaction fee to sustain the platform development and maintenance. I have observed that such platform tend to become a trading focused exchange eventually.

@neozaru
Wyre can be a payment service provider that any dApp developer can use to collect fiat payment. We are thinking of developing a simple server that listens for incoming transfers through Wyre api and allows providers to easily deploy a server without much development work.

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We propose a 3 milestone payout using https://escrow.raidguild.org/

M1: $2500
M2: $2500
M3: $2500

We’re deploying the escrow service to xDAI as we speak. How does that sound to you guys though ?

How does the escrow system work, can we deposit honey to the address directly or does a function need to be called? Currently one limitation of the conviction voting app is that it will just send the honey to a beneficiary address.

Direct deposit, you can also specify the parameters such as the expiration date of the contract where the funds would revert back to your address in case of RaidGuild going MIA & the escrow contract is backed by LexDAO arbitration services.

You can read more about it here https://forum.aragon.org/t/dao-payment-escrow-with-aragon-court-arbitration/2269/8?u=yalor

TL:DR with escrow each milestone will be approved and paid out by you and held safely until delivered work is confirmed.

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For anyone interested, you can now buy xDai directly with fiat using https://ramp.network/buy/?swapAsset=XDAI
You can not sell yet, but I heard on Twitter this will also be available soon.

Got a video tutorial prepped for this yesterday. Will upload onto the appropriate post when the home page is finished. If anyone wants to see how the ramp works check out a pre-release of the tutorial here :eyes:

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Is that Tool playing in the background? :confused:

No. Its made by @cryptobeats he has made a ton of sound stuff for us to use freely

Cool. Using music made by members adds value, primarily by giving member a creative outlet, which generates good vibes that reverberate through social interactions. Tonally not quite optimal in my opinion for a how-to video as sounds ominous and scary. Just my first impression

we got lots to choose from. thanks for the feedback :slight_smile:

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