Fluidity and Request Finance launch cashback program with stablecoins and low fees
“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.”
Fluidity Money has launched a cashback program with enterprise crypto payments app Request Finance that lets businesses reward customers who pay in crypto.
Merchants also stand to earn cashback rewards when they accept crypto payments. Each time a payment is made in the app, both sender and recipient stand to earn stablecoins.
The rewards will be randomly distributed into their wallets after each payment.
Firms and clients can both earn cashback rewards in stablecoins
Fluidity is a “spend-to-earn” decentralized finance (DeFi) protocol, blockchain incentive layer that rewards people for using their crypto through a novel yield-generating mechanism.
Pegged 1:1 to traditional stablecoins, Fluid Assets 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.
Under the cashback program, a smart contract audit firm and their client can both earn cashback rewards when their audit client pays their invoice in Request Finance – using a Fluidity-wrapped stablecoin.
Depending on the volume of payments being made throughout the entire program, cashback rewards can range from a few cents, to as much as hundreds of dollars per transaction.
Fluidity plans to expand reward options to NFTs, tickets, air miles, etc.
Rewards are currently paid out in stablecoins, but Fluidity Money has plans to expand its offering to other loyalty programs, which could see other types of rewards like non-fungible tokens (NFTs) being disbursed in the future.
Rewards could eventually range from tickets to token-gated experiences, merchant credits like air miles, digital collectibles, and more.
Shahmeer Chaudhry, CEO at Fluidity Money, commented: “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”.
Vijay Garg, Founder at MapleBlock Capital, said: “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”.
How wrapping stablecoins is key to Fluidity’s cashback rewards
Fluidity made the point that many cashback programs in crypto extortionate overdraft interest rates ranging from about 15% to 27% and their “seemingly attractive crypto cashback rates” are paid out in highly volatile tokens.
This is not the case with Fluidity, which pays out in stablecoins, which are normally pegged 1:1 to a fiat currency, and does not impose such high fees on merchants, or egregious interest rates on consumers.
The company also explained how the cashback program works from within, starting with clients depositing stablecoins like USDC, and USDT into the Fluidity Webapp in order to obtain an equivalent amount of “Fluid Assets”, Fluidity Money’s wrapped stablecoins. Bramah Systems operates as the independent auditor.
The deposited stablecoins are then lent out to other DeFi protocols such as Compound and 80% of the yield generated is used to finance the cashback rewards. The expectation is that, as more people use Fluidity Money’s wrapped stablecoins, the larger the cashback payouts will be.