💵On-ramping

On-ramping within the protocol allows users to acquire on-chain assets. We prioritize security and simplicity, ensuring a user-friendly experience from fiat to on-chain assets. We currently only support on-ramping from USD, EUR, SGD, GBP to USDC.

Guardrails

Limitations on On-ramping:

• One order at a time: Only one on-ramp order can be created at a time.

• Sequential Orders: Users must complete each on-ramp order before initiating a new one.

• Cooling Period: A mandatory one-day waiting period is required between orders.

Note: These guardrails are implemented to prevent the loss of funds due to potential vulnerabilities within the protocol. The limitations will be subject to adjustments by governance as we gain more confidence in the system's robustness.

👷‍♂️Guardrails

Flow

1. Registration

Complete a one-time registration to securely associate your Ethereum address with your off-chain payment service ID.

🙌Registration

2. Create order

Indicate your intention to on-ramp by creating an order and specifying the amount of the on-chain asset you wish to receive. The UI presents the best rates available from the off-ramper's deposits. Once your order is created, the corresponding off-ramper's liquidity is locked giving you ample time to complete the off-chain payment and generate a proof of transaction.

3. Perform Off-chain Payment

Execute an off-chain payment in fiat currency through the payment service to the designated off-ramper. The payment must at least equal the signaled on-ramp USDC amount times the off-ramper’s exchange rate.

4. Proof of Payment

After payment, the user generates a proof of payment data and it's authenticity along with also extracting the following from the payment data

• On-ramper’s Off-chain payment ID

• Off-ramper’s Off-chain payment ID

• Payment amount

• Payment timestamp

Note: The on-ramper's off-chain payment ID is hashed for privacy when sending this information on-chain.

We use both emails and web data to generate the proof of payment. Find detailed information about those here.

5. Unlocking Escrow

The smart contract checks the proof of payment along with the following to unlock the escrowed funds:

• Verification of the on-ramper’s intent

• Correspondence of the deposit to the correct off-ramper

• Adequacy of the payment amount

• Timing of the payment post-intent

Upon successful verification, the contract releases the agreed-upon USDC to the on-ramper’s address.

Proof of payment email

Upon payment the platform, e.g. Venmo, sends a payment confirmation email

User generating a proof of payment using payment confirmation email

Proof of payment web data

Upon payment, the platform, e.g. Wise, shows payment confirmation email page

User generating a proof of payment using payment server data

Risks of on-ramping

😬Risks