A guide to spending KUSD tokens
Hello, fellow token holder! First of all, thank you for acquiring this amount of KUSD tokens that you have, either through Coinbase deposit or via contributing to our marketing campaign. We respect all early adopters.
Secondly, it’s very important to understand that the token is stable, which means it is tied to some real value, and in our case that is US dollars. So, there is no point of holding big amounts of tokens, they are designed to be quickly minted and quickly spent.
This will guide you through spending process.
Spending Method 1: Partner e-Shops
Unfortunately, there is no partnerships with e-commerce systems at the moment. But we work on fixing that! And frankly, this might be the reason for you to actually hold a small amount of KUSD tokens, so you can be a tester in the first real e-commerce integrations. We have such plans, so stay tuned.
Spending Method 2: Trade on DEX
A great way to spend KUSD tokens would be to create liquidity on our Kompose Trade decentralised exchange: https://trade.kompose.app
But keep in mind that in order to buy KLAY for KUSD tokens, somebody else should publish orders for selling KLAY to you at a good price. There is an arbitage opportunity to buy KLAY on UpBit and then sell on this DEX for KUSD, you should try!
Although, exchanging 1 KLAY for 0.2 KUSD when the its real price tag on UpBit is only 0.08 KUSD is not fair at all. We don’t encourage you to dump all tokens for less worth, this is always a choice made by token holders.
KUSD is stablecoin anyway, meaning that at any point in time users should be able to withdraw the value back in the original form (e.g. USDC) or via an assessed conversion (e.g. BTC).
Spending Method 3: Use your right to withdraw
Users can leverage their right to withdraw from KUSD into liquid assets at any time now. Thank the new autonomous web app that we’ve built and presenting to you 🎉
https://kusd.kompose.app
The new app works on the majority of desktop platforms, such as Chrome, Brave and Firefox. It also works good on iOS and Android phones, although until a standalone wallet is released for mobile OSes, the level of security is low.
To start withdrawing, just add your target wallets! This is a security measure to avoid accidental typos and misunderstandings during the withdrawal itself. When checking values of transfers, nobody wants to mess with wallet’s digits!
The app allows you to immediately withdraw KUSD dollar value as USDC tokens on Ethereum network, or withdraw as BTC through Bitcoin network.
The exchange ratio is dynamically calculated in the moment of withdraw processing by our third-party provider (Coinbase Prime).
User must agree with the exchange rate. We don’t fix the rate, so the actual value of BTC received will be known in the moment of withdraw processing.
Do not use Bitcoin and Ethereum addresses with short expiration, such as in the invoice forms. Exchange addresses are allowed, as long as they don’t have short expiration.
Also for Bitcoin, do not withdraw directly into trades where the expected value must be exact, because we cannot predict it before the actual exchange during withdraw.
For USDC withdrawals, the final value is always known beforehand, it will be exactly same as amount of KUSD tokens being burned:
Wait, what should I burn?
This is how stablecoins work. From the beginning, there is zero KUSD issued, so no market cap at all. When a user deposits USDC or another collateral (for KUSD the only collateral is USDC), the system “mints”, or issues new tokens. And market cap is increased for that amount.
User possesses the tokens, can transfer any amount of them to another account, pay for a service, etc. At some point in time, some user wants to withdraw the real collateral behind KUSD. And before the system can send him USDC, or another asset like BTC, he must “burn” KUSD tokens on Klaytn network to prove that he cannot double-spend. It’s about sending a message, hehe, or a signed Klaytn transaction to KUSD smart contract that authorizes to remove any amount of tokens from user into the void. And the market cap will be decreased as well by that amount.
If all users burn their tokens, market cap will be zero again. But at this point there are already some folks who lost the keys, or mistaken with addresses, so certain amount of KUSD tokens are locked forever.. *sigh*
Signing Transactions
When you press that “Withdraw” button a new Klaytn transaction will be initialised, but not sent. First thing to do is verify all fields and the values and make sure you agree with them.
Secondly, you need to ensure that a Chrome or Firefox extension is installed and available, also the current wallet is unlocked and its address matches your Sender Address, or simply your Main Klaytn Account Address that you see in the dashboard everywhere.
We support Kaikas, the official wallet from Klaytn devs, and Jetstream, a good alternative. For KUSD platform, all transactions are free for all users, regardless of your wallet provider.
Mobile folks, with Android and iOS, especially users of our mobile application from Android Play Store, can safely rely on “Web Sign with Private Key” widget, that allows to sign in any kind of browser using keys from https://wallet.klaytn.com
After you submit your first withdrawal transaction, you can closely monitor the status in a dedicated dashboard. The Klaytn transactions are almost instant to confirm, it takes only a few seconds. After that, we begin to invoke and poll third-party APIs to make all required exchanges and transfers.
In case of USDC withdrawals, they are relatively fast and should not take more that 5–10 minutes to process. Bitcoin transactions are much more slower, it may take up to 1 hour to confirm your transaction. Be patient! 😉
FAQ
Which wallets would you recommend for USDC and Bitcoin?
There are plenty of wallets on the market, but let me highlight two of omy favourites and most convenient.
- Coinbase Wallet is a perfect cross-platform solution, features are:
* Works on mobile and desktop
* 1.5% APY on USDC holdings
* Instant USDC transfer to KUSD Stablecoin and exchanges
* Buy crypto with card, also payouts to banks (in limited countries) - Crypterium Platform
* Fast and easy KYC
* Supported in many countries for CC deposit/withdraw
* Can issue own plastic card for payments with crypto (USDC, BTC, …)
* Cashback program
