Intro
Blue recently came out of stealth on CoinDesk with its $3.2M seed round. We’ve been building an on/off ramp solution that is proposed here.
Overview
Our product allows users to trade your protocol using their fiat bank account with just one click. This unlocks your user’s largest source of liquidity, making it available for trading on Frax through a stablecoin called USDCash. USDCash is an ERC20 token that is connected to a user’s bank account through Plaid and other 3rd party integrations. When a user purchases USDCash on-chain, there is a deduction from their fiat bank account. This eliminates the need to on-ramp through CEXs or providers like MoonPay or Transak that can typically carry hefty fees.
Example
If a user wants to buy more FRAX, they could on-ramp 500 USDCash and swap 500 USDCash for FRAX atomically. From a technical perspective, we’re capturing $500 USD from the user’s bank account via ACH transfer and then minting them 500 USDCash (backed by the $500 USD ACH that we’ve captured).
Instant + Free
We’re using new technology that allows us to provide instant ACH transfers for the end user, making the on-ramp process much faster. We’re also offering zero ACH/card fees by covering them for the user. We can do this because we have an alternative source of revenue through the $USD backing USDCash. This $USD is stored with a qualified custodian that holds a portion of it in short-dated US Treasuries (similar to any other fiat-collateralized stabelcoin). Below we have outlined how Blue compares to competitors.
Summary
- Frax can drive more liquidity to the protocol by connecting user’s bank accounts to liquidity pools
- Users can on-ramp instantly
- Users can on-ramp with no fees
- Users can on-ramp into any token
- First-time on-ramp requires a KYC/AML check
- All on-ramps from fiat require 2FA authentication (irrespective of the amount)
- Frax generates fees for LPs if users wish to on-ramp into FRAX
- Uniswap recently integrated MoonPay (stats below on how we compare to other on-ramps)
- Our website is blue.fi - we have completed security audits with Halborn and Verilog and the implementation would be a JS SDK that has been audited with code available for inspection by anyone
| Blue | MoonPay | Transak | |
|---|---|---|---|
| Fees | 0% (cards) 0% (ACH) |
4.5% (cards) 1% (ACH) |
3.99% (cards) 0.99% (ACH) |
| Speed | Instant (ACH) | ~30 mins (cards) 2-3 days (ACH) |
~3 hours (cards) 2-3 days (ACH) |
| KYC | Yes | Yes | Yes |
| Tokens | Any (via trade routing) | <100 tokens | <50 tokens |
What we’re asking for
We’re looking to integrate with Frax as a widget in the top corner of the frontend (similar to Uniswap’s MoonPay integration) through a JS SDK. This will give users convenient access to their bank account liquidity while trading on Frax.