Fluidity Money introduces Crypto Cashback Program with Request Finance

Fluidity Money, a blockchain-based decentralized finance (DeFi) protocol, has introduced a cashback program in partnership with Request Finance. The program rewards customers who pay in cryptocurrency and offers cashback to merchants who accept crypto payments.

The cashback program is part of Fluidity Money’s “spend-to-earn” initiative, which aims to create a blockchain incentive layer by rewarding people for spending their crypto through a new return-generating mechanism. The program encourages the adoption of crypto payments by allowing anyone to earn stablecoins for using crypto.

Request Finance offers a suite of financial apps that help businesses manage nearly $290 million in cryptocurrency invoices, payroll, and expenses, and is already widely used by hundreds of Web3 businesses, including AAVE, The Sandbox, and Maker.

How the Cashback program works

The Fluidity Web App allows users to obtain “Fluid Assets”, which are packaged stablecoins offered by Fluidity Money. These tokens are acquired by depositing common stablecoins, such as USDC and USDT, into the app and exchanging them for an equivalent amount of Fluid Assets via a smart contract.

Every time users make a payment in the app, the sender and receiver earn stablecoins; the app then distributes stablecoins to their wallet after each transaction. Cashback rewards can range from a few pennies to hundreds of dollars per transaction, depending on the volume of payments.

For example, if a Web3 company uses Request Finance to pay an invoice with a Fluidity-wrapped stablecoin, both parties will earn cashback rewards. The more people use Fluidity Money’s wrapped stablecoins, the bigger the cashback payouts.

Expansion of rewards

Fluidity Money plans to expand its rewards program to other loyalty programs, including the ability to pay out non-fungible tokens (NFTs) in the future. By implementing this feature, payment apps that use cryptocurrency, such as Request Finance, can provide incentives such as access to token-gated experiences, digital collectibles, event tickets, and more.

Vijay Garg, founder of MapleBlock Capital, shared his thoughts on the effectiveness of similar programs. “Cashback and loyalty rewards programs have proven to be incredibly effective in driving the adoption of Web2 digital payments. Google Pay’s #StampwaliDiwali campaign for 2019 in India and Huat Pals campaign for 2022 in Singapore are good examples of this. We believe that a similar strategy can help drive the adoption of crypto payments.”

Shahmeer Chaudhry, CEO of Fluidity Money, added: “Request Finance helps thousands of enterprise teams and DAOs use stablecoins easily. We wanted to partner with them to introduce this cashback program as a fun way to reward people for to use stablecoins for payments.”

Competes with other Cashback programs

Fluidity Money provides a way to fund rewards paid out in stablecoins and does not impose high fees on merchants or consumers. Most other cashback programs are linked to credit cards that typically fund loyalty rewards programs through high interchange fees passed on to consumers and high interest rates ranging from 15% to 27%.

Fluidity Money’s approach intends to offer a more sustainable and predictable way to fund rewards. The dividends generated by lending the deposited stablecoins to other DeFi protocols, such as Compound, make the cashback rewards available.

80% of the returns generated are used to fund the cashback rewards, ensuring that the rewards are sustainable and predictable.

Fluidity Money’s approach offers another way to incentivize value transfer, and the more people use the service, the more rewards are generated, which in turn motivates more people to use the platform.

The partnership between Fluidity Money and Request Finance to launch a cashback program could have significant implications for crypto payments because it incentivizes the use of crypto by offering rewards. Fluidity Money and Request Finance are working to create a unique way to stimulate value transfer that can accelerate the growth and mainstream adoption of Web3 technologies.

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