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A comment on Top stablecoins shed $7B in May as traders redeem tokens en masse. Parent comment

Re:Top stablecoins shed $7B in May as traders redeem tokens ... by ceeplusplus on Sunday May 22, 2022 @02:45AM (#31465526)
Ethereum based stablecoins are hardly the best way to do this. From a user standpoint you have to 1) buy your stablecoin on some exchange 2) transfer it to your own wallet 3) pay a hefty fee to transfer it to the recipient (>$20 when the network is busy) 4) Recipient pays another hefty fee to transfer it to an exchange so they can offramp.

If I'm sending a remittance or similar paying $$$$ in fees is absolutely not desirable. And with current gas prices the cost of sending anything less than 50k is pretty comparable with just doing a wire transfer.

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Re:Top stablecoins shed $7B in May as traders redeem tokens ... by dharma1 on Sunday May 22, 2022 @03:37AM (#31465836)
A lot of exchanges (and fiat onramps) now directly with L2s like Avalanche or Polygon where gas fees are a lot lower
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Re:Top stablecoins shed $7B in May as traders redeem tokens ... by password4321 on Sunday May 22, 2022 @06:04AM (#31466550)
On/offramp is still there if you have to get back through ETH.

I remember feeling the frog water warming up when I first heard how "wrapped ETH" was another required fee in-between... craziness.

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Re:Top stablecoins shed $7B in May as traders redeem tokens ... by Jommi on Sunday May 22, 2022 @07:26AM (#31466981)
You don't need to use ETH mainnet at all. The top On/Offramps work fully on low-fees chains rn.
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Re:Top stablecoins shed $7B in May as traders redeem tokens ... by web4 on Sunday May 22, 2022 @03:03AM (#31465626)
the fees on exchanges are very small compared to paypal and similar products. Coinbase Pro fees are less than 0.6% and go down to nearly 0%.

for payments over 10K the fees may be less than Wise or a wire, and faster.

for average users the end game is L2 and direct on- and off- ramps from CEX and services like Ramp, and more payment processors accepting crypto so off-ramps will not be always needed. fees in L2 are in cents.

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Re:Top stablecoins shed $7B in May as traders redeem tokens ... by Jommi on Sunday May 22, 2022 @07:27AM (#31466983)
You don't need step 1), there are multiple ramps that sell and buy straight from wallets now.
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Re:Top stablecoins shed $7B in May as traders redeem tokens ... by whimsicalism on Sunday May 22, 2022 @08:22AM (#31467348)
Just pay lower gas and wait for your transaction to be completed when the network is less busy?
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