Crypto-to-Fiat Conversion

One of GuCard’s most innovative features is its ability to convert crypto to fiat instantly at the point of sale. This allows users to utilize their crypto holdings for real-world purchases globally. Below is a detailed breakdown of this process.

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1. How Crypto-to-Fiat Conversion Works

GuCard integrates with real-time liquidity pools and blockchain oracles to facilitate smooth crypto-to-fiat conversions.

Step-by-Step Workflow:

• Transaction Initiation:

  • User swipes GuCard (or uses card details online) to make a purchase in fiat currency (e.g., USD).

• Real-Time Price Fetching:

  • GuCard queries real-time exchange rates from blockchain oracles (e.g., Chainlink) and liquidity providers.

  • The user’s crypto wallet is debited based on the most competitive rate.

• Liquidity Provider Settlement:

  • GuCard taps into Gumart’s crypto liquidity pools to convert the crypto (USDT, BTC, etc.) into fiat.

  • The converted fiat is pushed to the merchant via VISA’s payment network.

• Transaction Completion:

  • Merchant receives the fiat payment instantly.

  • User receives a transaction confirmation through the Gumart Super App.

2. Real-Time Liquidity Pools

GuCard relies on crypto liquidity pools to ensure sufficient reserves for instant conversions.

• How It Works: Gumart partners with liquidity providers to maintain deep reserves of stablecoins (USDT, USDC) and fiat currencies (USD, EUR).

• Smart Contract Execution: Transactions are facilitated through smart contracts to ensure accuracy and transparency.

• Dynamic Fee Adjustment: Conversion fees are dynamically optimized based on liquidity pool depths and transaction volumes.

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3. Benefits of Real-Time Conversion

1. Zero Delays: Transactions settle instantly, eliminating the wait time associated with traditional crypto conversions.

2. Competitive Rates: Users benefit from real-time market rates fetched from trusted oracles.

3. Merchant-Friendly: Merchants receive fiat payments directly, reducing adoption barriers for businesses hesitant to accept crypto.

4. Transparent Fees: Users only pay a flat transaction fee ($0.25), with no hidden conversion costs.

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