FIP - 75 - Add Transak´s fiat on-ramp service on Frax

Voting ended almost 4 years agoSucceeded

Summary

The purpose of this proposal is to integrate Transak´s fiat on-ramp service on app.frax.finance in order to allow users to buy FRAX and other tokens directly from the dApp using credit/debit cards, bank transfers, Apple Pay, Google Pay and other local payment methods in more than 125+countries.

Details

About Transak

Transak is a single integration for applications to enable fiat-to-crypto on-ramp for a global user base. It does this by providing API-driven fiat payment methods to the on-ramp to 100+ crypto assets and abstracting away the complexity of user KYC, risk monitoring & compliance, payment methods, and customer support. Transak is already supported in tier 1 exchanges and wallets such as Beefy finance, Aave, Metamask, Trustwallet, Ledger, and hundreds of leading crypto projects.

Goal

To integrate the Transak widget into app.frax.finance UI so that users can buy FRAX and other tokens across all supported chains using any of the supported fiat currencies through their preferred payment methods.

The Problem

Unfortunately, to start for example staking or yield farming on frax.finance, users have to obtain their cryptocurrencies beforehand in order to interact with the protocol. A user would have to go through as many as three steps before reaching their end goal:

Deposit fiat into a centralised exchange
Buy ETH and withdraw to your non-custodial wallet
Connect to a DEX like Uniswap to get your FRAX tokens
Finally connect to app.frax.finance and start your DeFi adventure

The Solution

By integrating Transak, the user journey would look like this:

Buy FRAX with fiat directly from app.frax.finance
Start your DeFi journey

Benefits to the Frax Community

To summarise, below are the key benefits for the end users:

Simplified user journey to buy with fiat using your preferred payment method
Support for over 120+ countries with fees as low as 0.99%
FRAX will also be available to purchase on transak.com and other Transak partners (Metamask, Ledger, etc..), increasing visibility to and brand recognition
Benefit from Transak’s experimental features like 1-click to protocol where users can buy and stake with fiat in a single transaction.

How it works

Using this integration, the user clicks on the “buy with fiat” button on the FRAX DApp to launch the Transak Widget. You will be prompted to the widget where you select your preferred currency and the amount, your preferred payment method and the token to purchase. You then paste your wallet address and complete the transaction. Transak abstracts all the complexity of the payment flow and makes it simple for the user — Fiat in Crypto out.

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