FIP - 75 - Add Transak´s fiat on-ramp service on Frax

Governance Proposals Miscellaneous
1

Proposal 1: Add Transak´s fiat on-ramp service on Frax

Summary

The purpose of this proposal is to integrate Transak´s fiat on-ramp service on app.frax.finance in order to allow users to buy FRAX and other tokens directly from the dApp using credit/debit cards, bank transfers, Apple Pay, Google Pay and other local payment methods in more than 125+countries.

Details

About Transak

Transak is a single integration for applications to enable fiat-to-crypto on-ramp for a global user base. It does this by providing API-driven fiat payment methods to the on-ramp to 100+ crypto assets and abstracting away the complexity of user KYC, risk monitoring & compliance, payment methods, and customer support. Transak is already supported in tier 1 exchanges and wallets such as Beefy finance, Aave, Metamask, Trustwallet, Ledger, and hundreds of leading crypto projects.

Goal

To integrate the Transak widget into app.frax.finance UI so that users can buy FRAX and other tokens across all supported chains using any of the supported fiat currencies through their preferred payment methods.

The Problem

Unfortunately, to start for example staking or yield farming on frax.finance, users have to obtain their cryptocurrencies beforehand in order to interact with the protocol. A user would have to go through as many as three steps before reaching their end goal:

  1. Deposit fiat into a centralised exchange
  2. Buy ETH and withdraw to your non-custodial wallet
  3. Connect to a DEX like Uniswap to get your FRAX tokens
  4. Finally connect to app.frax.finance and start your DeFi adventure

The Solution

By integrating Transak, the user journey would look like this:

  1. Buy FRAX with fiat directly from app.frax.finance
  2. Start your DeFi journey

Benefits to the Frax Community

To summarise, below are the key benefits for the end users:

  • Simplified user journey to buy with fiat using your preferred payment method
  • Support for over 120+ countries with fees as low as 0.99%
  • FRAX will also be available to purchase on transak.com and other Transak partners (Metamask, Ledger, etc…), increasing visibility to and brand recognition
  • Benefit from Transak’s experimental features like 1-click to protocol where users can buy and stake with fiat in a single transaction.

How it works

Using this integration, the user clicks on the “buy with fiat” button on the FRAX DApp to launch the Transak Widget. You will be prompted to the widget where you select your preferred currency and the amount, your preferred payment method and the token to purchase. You then paste your wallet address and complete the transaction. Transak abstracts all the complexity of the payment flow and makes it simple for the user — Fiat in Crypto out.

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Resources

Transak Twitter

Transak Telegram

Transak Website

Transak Docs

3 Likes
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Hey everyone, i think this Transak proposal deserves way more engagement from our community.

As we all know Frax is focussed on building cutting edge tech that is innovative and solid. This is all great, but it limits our audience to sophisticated defi natives.

In a nutshell, Transak seems to be a great UI addon that abstracts away complexity and makes it much easier for normies to interact with our protocol.

One killer app that I can think off is a one click, normie proof, defi savings account. Which under the hood is just fraxlend. This could open up our protocol to way more users than is the case right now. Also, i would guess this user base to be more sticky hodlers of frax than defi natives, which would help our balance sheet grow further w the same level of frax liquidity. I am being asked so often by normies how they can earn yield in defi, but it is just too damn difficult for them.

Disclosure; wasnt aware of Transak until today. But i appreciate the pitch and conceptually their UI focus seems a good complement to our tech focus.

Thank you for your proposal and the patience Gabriel! There is quite a lot of things going on on the frax proposal front.

4 Likes
3

As mentioned, I have a positive inclination towards working w Transak:

• Allows adding easy onboarding of normies into Frax ecosystem, complementing our focus on developing innovative and solid tech
• "1-click-protocol" allows combining and executing various onchain contract interactions, thus simplifying the user experience. Some examples I can think of:
    ◦ Buy & Sell FRAX
    ◦ Buy & Sell FPI (a use case with a lot of unmet normie demand, also bc too technical!)
    ◦ Buy & Sell FXS
    ◦ Add & Lock & Remove Curve liquidity on Convex: FRAXUSDC, FPIFRAX
    ◦ Add & Lock & Remove Uniswap v2 liquidity on FRAXFXS
    ◦ Add & Lock & Remove FXS as veFXS
    ◦ Support for low-cost L1/L2s where we already have liquidity deployed and that would be easier for onboarding newbies (Polygon, Fantom, Arbitrum, Avax, BSC, Polkadot, CELO, Nervos, Kusama, Solana
• Integration seems really straightforward through integration of some HTML code. This could be a separate tab in app.frax.finance, e.g. "Onboarding"?
• Solid integration partners (Aave, Metamask, 1Inch, Trust Wallet, Ledger, ApplePay, credit cards) seems to suggest they know what they are doing
• Option to charge fees for onboarding (on top off Transak fees), but personally I would be in favor of keeping fees as low as possible to drive adoption

Some follow-up questions for Transak:
• Does your solution also allow the end user to do the reserve? E.g. withdrawing assets (eg FRAX) from the web3 wallet back to a bank account?
• Is the required gas (e.g. ETH) for transactions also abstracted away for end users?
• I understand you provide a fiat onboarding service. What wallet do you recommend/support to complement the onboarding (for ETH and a lower gas cost chain)?
• What do you need from us to move this forward?

1 Like
4

Does your solution also allow the end user to do the reverse? E.g. withdrawing assets (eg FRAX) from the web3 wallet back to a bank account?

Very good question. Our off-ramp will be live in approximately 6-7 weeks.

• Is the required gas (e.g. ETH) for transactions also abstracted away for end users?

The gas fees are directly charged to the user. While buying through the Transak widget you can see a clear breakdown between our fees and the network fee. We are very transparent when it comes to fees, unlike some of our competitors.

• I understand you provide a fiat onboarding service. What wallet do you recommend/support to complement the onboarding (for ETH and a lower gas cost chain)?

I would recommend some of our partners such as Metamask or Trustwallet.

• What do you need from us to move this forward?

Once the community accepts the proposal the integration process is very straightforward:

  1. Create a partner account

  2. Submit KYB

1 Like