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Ethereum based stablecoins are hardly the best way to do this. From a user standpoint you have to 1) buy your stablecoin on some exchange 2) transfer it to your
by ceeplusplus 4y ago
Ethereum based stablecoins are hardly the best way to do this. From a user standpoint you have to 1) buy your stablecoin on some exchange 2) transfer it to your own wallet 3) pay a hefty fee to transfer it to the recipient (>$20 when the network is busy) 4) Recipient pays another hefty fee to transfer it to an exchange so they can offramp.
If I'm sending a remittance or similar paying $$$$ in fees is absolutely not desirable. And with current gas prices the cost of sending anything less than 50k is pretty comparable with just doing a wire transfer.
- web4 4y agothe fees on exchanges are very small compared to paypal and similar products. Coinbase Pro fees are less than 0.6% and go down to nearly 0%. for payments over 10K the fees may be less than Wise or a wire, and faster. for average users the end game is L2 and direct on- and off- ramps from CEX and services like Ramp, and more payment processors accepting crypto so off-ramps will not be always needed. fees in L2 are in cents.
- dharma1 4y agoA lot of exchanges (and fiat onramps) now directly with L2s like Avalanche or Polygon where gas fees are a lot lower
- password4321 4y agoOn/offramp is still there if you have to get back through ETH. I remember feeling the frog water warming up when I first heard how "wrapped ETH" was another required fee in-between... craziness.
- Jommi 4y agoYou don't need to use ETH mainnet at all. The top On/Offramps work fully on low-fees chains rn.
- Jommi 4y agoYou don't need step 1), there are multiple ramps that sell and buy straight from wallets now.
- whimsicalism 4y agoJust pay lower gas and wait for your transaction to be completed when the network is less busy?