let user use their local currency

muqa-org / demo

Municipal Quadratic Funding Initiative

MIT License

2 stars 1 forks source link

let user use their local currency #8

Open tomislavmamic opened 3 weeks ago

tomislavmamic commented 3 weeks ago

We should abstract away the use of cryptocurrency for the user. This means that the average user, wouldn't even know that they use cryptocurrency. However, for advanced users, the fact that we use cryptocurrency shouldn't be out of reach.

UX for this should be similar to this UX of Split Promet (local public transport) app:

In our pilot in Split, local currency is EUR. This means that, when user tops up using their credit card, they pay in EUR and get EUR on their wallet.

[ ] We need to review EUR stablecoins and choose which one to use
[ ] We need to make sure our stablecoin is available on the network we'll use
[ ] How is the conversion paid? Do we add it on top of what user pays, or do we deduct it from what user pays?
[ ] Can we get the conversion costs and transaction costs covered for the pilot?

b0rza commented 1 week ago

@tomislavmamic what to we do with stablecoin de-peg risk?

Idea

Use an alternative token that's available on the network we'll use. EURs are then converted on top up, and deposited in a classic bank account. But the app runs on this coin?

Is this viable or?

tomislavmamic commented 1 week ago

The risk is minimal because we don't hold the funds for long. When a user makes a donation through Allo smart contracts, she pays with a credit card, the onramp service exchanges it to EURe and deposits on users wallet, then immediately the amount is transacted to the grantees. This means grantees can access funds immediately and offramp or whatever they want.

Bigger risk is the liquidity of the stablecoin. For example if there is not enough liquidity, exchange from EUR to EURe might be super expensive and the user might loose large share in conversion. This is why we should work closely with stablecoin issuers to make sure this doesn't happen.

b0rza commented 1 week ago

Is it a given that grantees must use receive EURe? Can we/should we also do an automatic offramp for grantees?

tomislavmamic commented 1 week ago

I think the longer they hold crypto, the better.

On Mon, 1 Jul 2024 at 15:32, Ante Borzić @.***> wrote:

Is it a given that grantees must use receive EURe? Can we/should we also do an automatic offramp for grantees?

— Reply to this email directly, view it on GitHub https://github.com/tomislavmamic/muqa/issues/8#issuecomment-2200022634, or unsubscribe https://github.com/notifications/unsubscribe-auth/ADZV5K6KIMVG3FRRAUGZMUTZKFD4HAVCNFSM6AAAAABJF4OYZGVHI2DSMVQWIX3LMV43OSLTON2WKQ3PNVWWK3TUHMZDEMBQGAZDENRTGQ . You are receiving this because you were mentioned.Message ID: @.***>

-- Tomislav Mamić