GeroWallet Integrates Fiat Ramps For Seamless User Experience
Decentralized Finance (DeFi) is one of the most recent breakthroughs in the cryptocurrency space. It allows users to earn interest and borrow assets through a decentralized yield protocol without an intermediary, i.e. a bank. A good example of a platform that offers such services is AAVE.
Nonetheless, the complexity of DeFi and lack of guidance present a steep learning curve which deters many users from leveraging the technology. GeroWallet aims to lower the barrier to entry by providing users with an intuitive interface and easy to comprehend functions. In this article, we will explore how GeroWallet’s on- and off-ramp features play into its functionality as the ultimate DeFi solution.
What is an on-ramp/off-ramp?
At the dawn of the 20th century, long distance travel was a tiring ordeal. Travelers drove endless hours on windy, rural roads that were often unpaved. The advent of the highway transformed the way humans commute on land by drastically reducing travel time and providing safer road conditions. In the present day, travelers can cross state lines by using interstate highways, which are accessed through an on-ramp and exited via an off-ramp.
In many ways, the process of buying and liquidating cryptocurrencies is analogous to using a highway to travel from point A to point B. An exchange that allows the purchase of digital assets with fiat currency is considered an on-ramp, as it acts as the entrance to the cryptocurrency “highway.” Anyone who wishes to trade in cryptocurrencies would need to first trade fiat for their digital asset of choice. A great example of a popular cryptocurrency on-ramp would be Coinbase, as it allows users to trade the U.S. dollar for digital assets.
Off-ramps, on the other hand, represent exits from the cryptocurrency highway. They facilitate the process of converting digital assets into fiat. To liquidate assets, users would need to trade cryptocurrencies back into fiat or use them for goods and services. Unfortunately, the slow adoption and recognition of cryptocurrencies as legal tender in many jurisdictions limits the options available to users who wish to spend or liquidate their assets. To date, only the most well-known centralized exchanges like Coinbase, Binance or Kucoin provide such services. Storing digital assets on these platforms defeats the purpose of decentralization. For users who wish to store their assets in private wallets, the process of liquidating involves additional steps of transferring these assets to the exchange, then subsequently trading them for fiat. Each of these steps involve network transaction fees that deplete one’s assets with each transaction.
How Does GeroWallet Plan to Solve This Issue?
By providing a seamless user experience, GeroWallet has built a series of integrations and has chained them on the back-end. This means that users will not have to interface with any of the complicated intermediate steps involved in DeFi when using the GeroWallet interface.
GeroWallet is the missing piece in the DeFi adoption puzzle. Through partnerships and integrations with fiat ramp service providers, GeroWallet is able to offer both on-ramp and off-ramp capability. Consequently, Gero is able to provide its users an outlet to not only purchase their first cryptocurrencies via direct deposit or debit/credit card, but also to trade their assets back to fiat as they wish through their private wallet. Granted, having a fiat ramp is hardly anything worth writing home about, and many non-custodial wallets already offer similar services. So what sets GeroWallet apart from other crypto wallets? By chaining complexities on the backend, while making it user friendly on the front end.
For example, interest rates offered by banks have been plummeting for years. In 2021, most banks are offering 1% Annual Percentage Yield (APY) for funds deposited into savings accounts. Consequently, consumers have begun to realize that keeping fiat in a savings account is no longer a wise option for wealth preservation. This problem is compounded by the rising rate of inflation. Many have resorted to investing in precious metals, index funds, stocks, and digital assets. GeroWallet makes this process easy by allowing users to deposit fiat directly into a savings account within the app and utilize one of its integrated yield protocols to earn interests at a much higher rate than offered by traditional banking institutions. AAVE, for instance, offers 2.6% APY for USDT (a stablecoin pegged to the U.S. dollar) deposits.
To earn interest on fiat deposits with GeroWallet, users need only connect their bank account or debit/credit card to the platform via fiat ramp service providers (that will be soon announced) and deposit fiat into a savings account. The app handles the rest. On the back end, GeroWallet’s integration with a fiat payment service will convert the fiat into ERC20 USDT. To reduce transaction fees, the ERC20 token is then bridged to Cardano USDT with the Cards Bridge (this will be detailed in a future article). Subsequently, via Cardswap or another swapping platform, Cardano USDT is swapped for a different stablecoin, supported by a yield/interest rate protocol on Cardano. The stablecoin is then deposited on the platform for yield or interest.
Most novice users would find the steps outlined above to be overly complicated and may be deterred from attempting them. Instead of requiring users to perform these cumbersome operations, GeroWallet simplifies the process. To provide an element of familiarity, the user interface will only display the deposited amount in fiat, plus interests accrued, similar to traditional finance platforms. Additionally, users will be able to withdraw funds in the form of fiat and have the funds deposited directly into their bank account. GeroWallet users will also be able to buy or trade native Cardano tokens with fiat, made possible by integrations with fiat ramps and Cardano Decentralized Exchanges like CardSwap for swapping tokens. GeroWallet will also be integrated with a synthetic asset protocol on Cardano, for people who wish to trade global stocks and precious metals.
Through its fiat ramp integration, GeroWallet is simplifying DeFi processes and lowering the learning curve by promoting the adoption of blockchain technology and cryptocurrencies as a whole.