Practice and ensure process to redeem stablecoin works (USDC, Paxos etc)

onggunhao commented 5 years ago

Why

On May 20th, Ines will need to show proof to Cornell that she has $60,000 in the bank
Assuming that the loan amount is funded, we will need to go through the stablecoin provider's redemption process (e.g. USDC, Paxos) to convert the stablecoin into fiat

Todos

A lot of this is business-related, and Ines will be driving this

[ ] Research redemption processes for various stablecoins (Paxos, TrueUSD, GUSD, USDC)
[ ] Go through process for KYC / AUML to get an account with each of the stablecoins
[ ] If necessary, contact the stablecoin to let them know we are doing this experiment and ask them for help with redemptions / making sure we can
[ ] Can we run an experiment where we buy some Stablecoin on an exchange, and then redeem it to a bank account (to test that the process works?)

Definition of done

Ines should be able to redeem stablecoins from her crypto wallet, and get fiat in her / her husband's bank account
She should have gone through the KYC / AUML and activation process for stablecoins

Resources (Stablecoin to Fiat redemption)

Paxos Paxos' redemption process

USDC USDC Redemption Process

TrueUSD TrueUSD Redemption Process

GUSD GUSD Redemption Process

onggunhao commented 5 years ago

@wimanesti has created a USDC wallet, and we will be doing a test run this evening (sending $1 on 29 April 2019) to help her get used to the process

[x] Send @wimanesti $1 to her USDC wallet
[ ] @wimanesti to verify receiving $1
[ ] @wimanesti to try going through redemption process for $1

onggunhao commented 5 years ago

Trial 1 USDC sent to @wimanesti

Txn: https://etherscan.io/tx/0xa75cbe3632bda94c85f1149767f08a93f14cc6b81df848f381c81c9cd2419631

onggunhao commented 5 years ago

@wimanesti Ping! There are 2 open tasks above for you to verify that you can redeem 1 USDC to your US bank account. After you verify it, we can close this issue

onggunhao commented 5 years ago

@wimanesti Ping! Let's make sure the redemption works, and close this issue by end of next week.

wimanesti commented 5 years ago

My husband is able to linked his bank account to Coinbase and managed to redeem 5 dollars. I am now sending the rest of USDC to his coinbase account to be redeemed.

onggunhao commented 5 years ago

@wimanesti Cool! Could you verify and check what were the fees charged by Coinbase to redeem the 5 USDC to his bank account?

If I'm not wrong, there is a way to avoid withdrawal fees from Coinbase. See https://cryptocurrencyhub.io/use-this-secret-method-to-avoid-paying-coinbase-fees-edb5ed65925?gi=3128fa2d33be

You can close this issue once you've looked into how to withdraw with as little fees as possible.

wimanesti commented 5 years ago

Trading 15.63 ETH (~$4,512.27) to USDC worth 4470.62 (trading fee $50.98)?

wimanesti commented 5 years ago

@wimanesti Cool! Could you verify and check what were the fees charged by Coinbase to redeem the 5 USDC to his bank account?

No fee is charged to withdraw 100 USDC at Wells Fargo

onggunhao commented 5 years ago

@wimanesti No! Just the 5 USDC - were there any fees?

I'm not going to give any advice on whether you should hodl the ETH or convert it to a stablecoin - I'll leave you to research Bitcoin, Ethereum and the "hodl" movement...

Interestingly, it might be interesting to come up with the concept of "undercollateralized" loans - you "staking" the 15 ETH you have as collateral for a 60,000 Dai loan. (cc @tspoff @adibas03)

wimanesti commented 5 years ago

@wimanesti No! Just the 5 USDC - were there any fees? No fee whatsoever. But it takes 5 days to withdraw.

I only traded 105 USDC, the first trial is to withdraw $5 and the second trial is $100 to see if there's any fee charged depends on the amount withdrawn. No fee to withdraw at Wells Fargo but there's trading fee to convert ETH to USDC depends on the amount. They charged ~$1.25 to trade 100 USDC

onggunhao commented 5 years ago

@wimanesti Please close this issue once you've verified the fees charged for withdrawing to bank account

enabledao / enable