- Fluidity Money seeks to incentivize blockchain use by rewarding users when they use their crypto.
- The platform is offering a cashback system employing a new yield-generating mechanism.
- Cashback payouts are currently in stablecoins like USDT and USDC.
DeFi protocol Fluidity Money has announced a cashback program that will see businesses reward their customers when they pay for goods and services using crypto.
The goal is to incentivize more people into using their crypto for payments by rewarding them whenever they do so. According to Fluidity, the “spend-to-earn” program is a collaboration with enterprise crypto payments app Request Finance.
Cashback payouts in stablecoins
Fluidity says the new cashback program will also allow merchants to earn rewards when they integrate crypto payments.
“Request Finance helps thousands of enterprise teams and DAOs use stablecoins easily. We wanted to work with them to introduce this cashback program as a fun way of rewarding people for using stablecoins for payments”, Shahmeer Chaudhry, the CEO at Fluidity Money, said.
The program will work by offering a reward in stablecoin, like Tether, every time a sender or recipient uses the app. Users will benefit from a loyalty program that doesn’t eat into the cashback via huge interchange fees, as is the case with credit card-type programs.
Distribution of the cashback rewards will be random, with payments sent to users’ wallet, the platform said.
While support is currently for stablecoin payouts, Fluidity Money plans to expand the program to other loyalty offerings, and could add non-fungible tokens (NFTs) and other rewards at a later date. In this case, Request Finance will offer the rewards depending on the type of NFT.
Payouts from NFT-related deals will include tickets to token-gated offerings, air miles, and digital collectibles.
How does Fluidity Money work?
Fluidity Money works with wrapped stablecoins, or what’s called “Fluid Assets.” To obtain these fluid assets, stablecoins such as USD Coin (USDC) and Tether (USDT) are deposited into the Fluidity Webapp. The stablecoins are then wrapped to generate the cashback rewards.
Minting any Fluidity stablecoins requires that one deposits an equivalent amount of USDC or USDT into a smart contract, with these lent out to DeFi protocols for yield generation.
Fluidity smart contracts are audited by Bramah Systems and 80% of the yield from protocols like Compound goes into the cashback program.