Why CADC? A Few Use Cases For PayTrie’s CAD-backed Stablecoin
Stablecoins have proven to be a fundamental layer of the cryptocurrency ecosystem. Unfortunately, as Canadians, the most well-known stablecoins are USD-denominated stablecoins (e.g. USDC, USDT, BUSD).
Even though Canadians are familiar with USD, Canadians don’t normally transact using USD.
As Canadians who transact daily with CAD, holding USD-denominated stablecoins leads to many risks. For example, USD/CAD exchange rates can fluctuate daily. This can swing by a few percentage points, which could adversely affect your ability to manage risk.
That’s why we created CADC.
We created CADC for Canadians who want to stay on the blockchain, but don’t want to be limited to a USD-denominated stablecoin.
But there are many more use cases and benefits for using CADC. Let’s discuss these more in detail.
Instant and Final Settlement
CADC can be used for final settlement between parties. CADC can be sent and received 24/7 and allows almost instantaneous settlement outside of bank hours. Therefore, parties receiving compensation can rest assured knowing that they have 100% custody of the value of the CADC they received and can always choose to redeem their CADC back to CAD on a 1:1 basis.
Low-Cost Payments
CADC can be used for payments between parties at much lower costs than with traditional bank rails. Credit cards can charge upwards of 2–3% per transaction and have chargeback risks. The cost to send CADC could be just pennies on L2s. And the cost to redeem the CADC, should you choose to do so, is just 0.05%.
Low-Cost Remittance
Sending money internationally usually comes with high fees. With CADC and L2s (currently available on Polygon and Arbitrum), this could decrease the costs significantly. CADC can be minted easily with PayTrie. Once you’re on-chain, you can then exchange CADC for a different stablecoin (using a DEX) and send it back home. The stablecoin will arrive almost instantaneously internationally and can be off-ramped using your home country’s stablecoin off-ramp solutions.
Payroll For Web-3 Companies
Web-3 companies that operate natively on the blockchain can choose to pay their employees or contractors on-chain. This limits the need for native web-3 companies to have to off-ramp their stablecoins into CAD in order to meet their payroll needs. Companies can instead pay their employees and contractors using CADC. Employees and contractors can then choose whether they’d like to stay on-chain or they can decide to off-ramp the CADC themselves.
Conclusion
These are just a few examples of use cases for CADC. Many more are being discovered as DeFi continues to develop.
If you have any questions, feel free to reach out to support@paytrie.com
