Supported Currencies
Last updated
Last updated
Funding the wallet is only possible with the five cryptocurrencies we have listed. This is because the liquidity provider's goal is to cash out their crypto with transaction incentives, rather than using it.
When a buyer purchases from a merchant, they pay the LP using their local currency. Friddy charges an additional 0.3% on the transaction requested by the merchant as a revenue stream for Friddy. To exchange currencies, the website is used.
When the balance is now in the merchant's wallet, another liquidity provider will cash out that balance in USD to the currency of the merchant with the real-time value of the cash-out. We add another 0.3% on that conversion. No matter how the currency fluctuates, the merchant has the ability to avoid that risk by providing a cash-out method in their desired currency. Friddy assumes 0 risks in the entire process.
In the case, there was a huge drop in the USD value, when the merchant is asking Friddy to get their cash-out in crypto Friddy would sell the backing to the merchant at the price of the current market + (3 to 5)% margin, and this generates a revenue on the FX fluctuation and the backing sold. If the USD goes up it is more beneficial for the merchant to sell their cash-out or settlement to liquidity providers at the time of settlement. This FX process as a revenue stream is a common practice in payment gateways, and it doesn't require an actual hold of any fiat currencies.
The liquidity providers are always buying and selling USD from the market at the normal market price at the time of the transaction, and the heaven currency from the fluctuation of their local market price making the backing of their crypto in USD a standard market practice. It would take a force major for Friddy to lose the value of its backing and in this case, USCD, and USD had to drop significantly in value.