Fluidity launches cashback program on crypto payment app Request Finance
The cashback program enables businesses to incentivize customers who pay with cryptocurrency, while also offering cashback rewards to merchants who accept crypto payments. Whenever a transaction is completed on the app, both the sender and recipient have the chance to earn stablecoins, which will be randomly distributed to their wallets after each payment.
As an example, a smart contract audit firm and their client can receive cashback rewards by utilizing Request Finance to pay invoices with Fluidity-wrapped stablecoins. The amount of cashback rewards earned can vary from a few cents to hundreds of dollars per transaction, depending on the overall payment volume of the program.
Currently, the cashback rewards are paid out in stablecoins, but Fluidity Money is looking to expand its offering to include other loyalty programs. This could potentially involve the distribution of non-fungible tokens (NFTs) as rewards in the future. Depending on the nature of these NFTs, Request Finance and other crypto payment apps could offer rewards such as tickets to exclusive events, merchant credits (e.g. air miles), digital collectibles, and more.
Commenting on the launch, Fluidity Money founder and CEO said: “Request Finance helps thousands of enterprise teams and DAOs use stablecoins easily. We wanted to work with them to introduce this cashback program as a fun way of rewarding people for using stablecoins for payments.”
“Cashback and loyalty reward programs have proven incredibly effective at driving the adoption of Web2 digital payments. Google Pay’s 2019 #StampwaliDiwali campaign in India, and the 2022 Huat Pals campaign in Singapore are great examples of this. We believe that a similar strategy can help to drive the adoption of crypto payments”, said Vijay Garg, Founder at MapleBlock Capital.
Not your usual crypto cashback
While cashback rewards have been around in the crypto space for some time, many of these programs have been linked to credit cards. These programs are typically funded by high interchange fees that merchants pass on to consumers, as well as sky-high overdraft interest rates that can range from 15% to 27%. Moreover, the advertised cashback rates on these credit cards often appear enticing, but the rewards are usually paid out in highly volatile tokens.
In contrast, Fluidity Money offers a new approach to financing rewards for crypto payment apps like Request Finance. With this method, rewards are paid out in stablecoins and do not come with high fees for merchants or exorbitant interest rates for consumers.
How it works
Fluidity Money’s wrapped stablecoins, or “Fluid Assets”, can be obtained by depositing stablecoins like USDC, and USDT into the Fluidity Webapp. Wrapping the stablecoins via Fluidity Money, is key to how the cashback rewards are generated. To mint a Fluidity stablecoin, an equivalent amount of that specific stablecoin like USDC or USDT, must be deposited into a smart contract, audited by Bramah Systems.
The deposited stablecoins are then lent out to other DeFi protocols such as Compound. Eighty percent of the yield generated is used to finance the cashback rewards. As more people use Fluidity Money’s wrapped stablecoins, the larger the cashback payouts will be.
Fluidity Money is creating the blockchain incentive layer by rewarding people for using their crypto through a novel yield-generating mechanism. Fluid Assets are pegged 1:1 to traditional stablecoins and can be embedded into any platform, protocol or system, enabling all forms of value transfer to be incentivized. Yield can only be generated through transactions, meaning users can only earn rewards when they spend their digital assets.
Request Finance is a suite of financial apps that helps businesses manage nearly $290 million cryptocurrency invoices, payroll, and expenses that boasts more than 81,000 community members across its social media platforms. Using its app, businesses can send invoices, make and receive payments in a range of cryptocurrencies. The app is already widely used by hundreds of Web3 businesses, including AAVE, The Sandbox, and Maker.