WeSend: the simplified answer to decentralized remittances

An overview of the technical features of WeSend, the first-ever blockchain-powered marketplace offering seamless cash-in and cash-out for cross-border transactions.

Using a shortest path algorithm, WeSend connects liquidity providers in multiple markets, transacting in multiple currencies to deliver the best price for virtually any pair of currencies and collection/delivery methods to end users.

Key terms defined

• SDT is the first digital asset to offer a semi-stable price designed to work as an exchange instrument for use cases that require stability while still allowing price growth as network liquidity increases. A more detailed explanation of Send SDT is available in the Send Whitepaper.
• Payment method is any form of value representation in a particular currency that can be used to transfer its value to someone else: cash, credit cards, wire transfers, blockchain-based transfers and gift cards are examples of payment methods.
• First Mile Operator (Abbreviated as “FM” from here onward) is a user or organization willing to sell SDT tokens for a particular currency with a clearly defined set of payment methods.
• Last Mile Operator (Abbreviated as “LM” from here onward) is a user or organization willing to buy SDT tokens with a particular currency and a clearly defined set of payment methods.
• A liquidity provider is a user or organization that provides liquidity to the marketplace by dealing directly with SDT tokens. Consequently, both FM and LM are liquidity providers.
• The sender is the user that wants to exchange a certain amount of currency A to its equivalent value in currency B and send it to himself or to someone else in another location. The sender in our marketplace doesn’t interact with SDT tokens and doesn’t need to be aware of the intermediate operations the market executes to complete his or her transaction.
• The recipient is the user that receives the intended amount of currency B from the sender with the payment method defined by the sender and LM. A recipient may be the sender or a different user and doesn’t interact with SDT tokens nor do they need to be aware of the intermediate operations the market executes to accomplish the transaction.
• We define a transaction as the flow of interactions between the sender, the liquidity providers and the recipient in order to transfer money from currency A to currency B. Every actor in this flow is called a node.

Finding the optimal path

1. Connecting the sender: A sender needs to send money in currency A to be received by himself or someone else in currency B using specific payment collection and delivery methods. WeSend selects an FM with enough SDT to sell using the sender’s selected payment method. The sender transfers a certain amount of currency A to FM and an equivalent amount of SDT is made available to continue the transaction flow.
2. Connecting liquidity providers: The SDT tokens sold by FM are sent directly to LM, rather than to the sender. Our system works to detect arbitrage opportunities in order to select the best possible rate for the transaction. If transaction time constraints allow, the matching algorithm will act as an arbiter in the marketplace leading to longer but cheaper paths where other intermediate currencies and payment methods are used before the LM node is reached. (This is possible whenever there are non-SDT transactions in the marketplace). Once the LM node is reached, FM transfers a certain amount of SDT in exchange for a certain amount in currency B. At this point, we have the expected amount in currency B to pay the recipient.
3. Connecting the recipient: Instead of going to FM, currency B is sent directly to the recipient. Once LM sends funds to the recipient, any value on escrow is released and the transaction is confirmed by all actors, rendering the transaction complete.

Computing an alternative path

As transactions in WeSend are driven by human interaction, value transfer flow could get interrupted at any point for several reasons. In such scenarios, WeSend will take one of two actions.

1. Chargeback any escrow wherever necessary in order to rollback the transaction to its latest safe state.
2. Allocate new liquidity providers and compute a new optimal path.

Why SDT?

In a transaction between currencies A and B with an intermediary currency C, the actual exchange rate A/B is independent of the value of currency C. For a currency C to effectively perform cross-border transactions, asset value has to be stable during the entire transaction flow. Volatile assets like bitcoin will not only result in risk-averse liquidity providers increasing their fees, but will also increase the risk of cancelled transactions as more convenient rates come up unexpectedly.

SDT is a semi-stable instrument of exchange that allows all parties to execute transactions with periods of stability and lower risk. Additionally, built on a blockchain driven by smart contracts, SDT allows WeSend to build over decentralized contracts for higher security and transparency.

Two layers of functionality

1. WeSend Express: This layer places priority on ease of use, allowing users to exchange, deposit, withdraw or send money anywhere, anytime by simply specifying an amount and a payment method. With its easy-to-use interface designed for non-technical users, express mode internally connects nodes and takes any actions needed to accomplish transactions without unnecessary user intervention. In express mode, users interact solely with their local fiat currencies on the sending and receiving ends of each transaction and don’t necessarily know the role SDT plays as a neutral exchange tool.

• WeSend Marketplace: The lower level offers a full view of the marketplace and serves as a platform for liquidity providers and users interested in buying or selling SDT tokens. The marketplace allows anyone to open buy/sell ads and complete transactions between SDT and any cryptocurrency or fiat currency.

Escrow mechanism

The main problem with decentralized systems is that logistical problems or even fraud could occur if the sender pays the FM and the FM does not have SDT to perform the operation on its node. The WeSend escrow mechanism automatically checks FM SDT inventory and retains the appropriate amount when it is ready to go.

To unlock the escrow and allow the transaction to continue, the SDT original owner is the authorized user who unblocks the escrow once s/he confirms that the expected payment is received.

• In an operation between sender and FM, the FM authorizes the unlocking of the escrow once it receives payment.
• In an operation between LM and recipient, the recipient (or sender, on recipient’s behalf) authorizes the unlocking of the escrow once recipient receives payment.

For scenarios in which the agreed payments are not completed and the SDT must be returned to the original owner’s balance, or when the payment is completed and the SDT holder does not authorize the escrow to be unlocked, we implemented windows of time within which we can complete the exchange, dissolve the escrow or escalate the transaction to a validator who verifies the agreed terms and mediates in the resolution of escrow.

Send Consensus Network

As the first member of the Send Consensus Network, WeSend will accept the SDT reference price as a minimum possible exchange rate for all transactions.

• An initial supply of SDT tokens will be distributed to specific communities or sold in a crowd-sale to allow public circulation in the market. For more details see Send Token Sale Economics document.
• Users and organizations interested in providing liquidity to the ecosystem should look for SDT tokens in the market and deposit them into WeSend to subsequently open sales announcements.
• Users and organizations without SDTs interested in providing liquidity to the ecosystem should open purchase announcements.
• WeSend users only interested in currency/token conversion will select exchange options to receive price quotes generated from the available offers of the network nodes.

When an user accepts a quote, the transaction is executed as described in our Finding the optimal path section.

Summary

WeSend technology

• Using SDT as an exchange instrument, the WeSend decentralized platform is able to facilitate fast, secure, and low-cost cross-border transactions.
• WeSend express mode allows users to execute automatic transactions (cross-border, currency exchange, deposits or withdrawals) in a 100% transparent and user-friendly process.
• WeSend makes use of SDT’s built-in escrow functionality to protect user funds from fraud.
• WeVerify will create a new way to provide proof of identity in order to fulfill user or liquidity provider needs and regulations in seconds.

WeSend for the general public

WeSend is designed to fulfill community needs, providing a safe mechanism to handle transactions in different currencies regardless of geographic location. The WeSend App will make remittances easier than ever, enabling users to send money anywhere, anytime, in less than a minute.

WeSend for liquidity providers

WeSend provides a business opportunity to liquidity providers who stand to earn profit from transaction fees. Through the WeSend Marketplace, liquidity providers can buy, sell or exchange SDT for any currency at the best rates.