Stablecoin 1:1 exchange rate
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Last updated
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We are introducing this feature to improve the deposit and withdrawal experience by displaying a 1:1 rate for USD-based stable coins to USD. Traditionally, exchange rates fluctuate slightly based on different market conditions. This exchange rate may also be not what depositors expect to see when making a transaction with stablecoin. By allowing businesses to enable the 1:1 exchange rate and also control under which conditions it is used, we have provided a solution that will meet the customers expectations by providing a visually standardized exchange rate.
To enable the feature for an already existing business, open the edit menu by clicking the Edit button on any given business. The checkbox enabling/disabling the new exchange rate is situated towards the bottom of the page.
A business can either have the 1:1 stablecoin exchange rate or Processing fee distribution enabled. Both cannot be anabled at the same time.
When creating a new business this same configuration can be applied on step 8 of the creation process.
After the feature is enabled, the operator will also have to decide the maximum allowed depeg percentage up to which, the 1:1 rate will be displayed for depositors. This can be adjusted with the Stablecoin depeg threshold slider with a minimum allowed value of 1% and maximum of 10%.
A quick example of how a 1% depeg threshold would work will be:
If the deposit amount is 100 USD and the actual market rate is 1 USD=0.998 USDC then the 1:1 feature rate will be upheld and on the checkout the depositing user will see a rate of 1:1.
If however at some point the actual rate gets worse that 1 USD = 0.99 USDC then the 1:1 feature will be automatically disabled untill the rates get under the configured depeg threshold.
After a deposit which used a 1:1 exchange rate is received, the business will be credited based on the actual rate, not on the 1:1 rate. This means it is responsible to cover the difference between the 1:1 rate and the actual rate.
Here is how our checkout will display the 1:1 rate when applicable
And here is the alternative message that will be visible once the depeg threshold is exceeded.
For withdrawals the feature will also display a 1:1 rate for any stablecoin-to-USD pair as long as the depeg threshold is kept.
For both crypto deposits and crypto withdrawal the loss incurred by each transaction the has used the 1:1 rate will be visible in the transactions details on the dashobard, in the CSV and in the PDF export. This information will also be added in our deposit and withdrawal callback notifications for easier integration.
If you still have questions or need help with integrating this feature, contact our support team () and they will gladly help you further.
