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-backed stable coins to USD. Traditionally, exchange rates fluctuate slightly based on different market conditions. This exchange rate may also not be 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.
When creating a new business this same configuration can be applied on step 8 of the creation process.
Once the feature is enabled, the operator must define the maximum allowed depeg percentage for which the 1:1 rate will still be displayed to depositors.
This is configured using the Stablecoin Depeg Threshold slider, with a minimum allowed value of 1% and a maximum of 10%.
Example (1% Depeg Threshold):
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.
Once a deposit using the 1:1 exchange rate is received, the business will be credited based on the actual market rate, not the 1:1 rate. This means the merchant is responsible for covering 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, provided the depeg threshold remains within the configured limit.
For both crypto deposits and crypto withdrawals, the loss incurred per transaction due to the 1:1 rate will be visible in:
Individual transaction details on the dashboard
CSV exports
PDF exports
Additionally, this information will be included in our deposit and withdrawal callback notifications for easier integration.
If you have any questions or need assistance with integrating this feature, please contact our support team at support@finrax.com—we'll be happy to help!
